A = Access to lending! Since 1997, MetroAction has been committed to providing flexible small business loans to start-up and expanding small businesses in northeastern Pennsylvania. MetroAction is one of the only nonprofit organizations in northeastern Pennsylvania authorized to provide microloans to small businesses through the U.S. Small Business Administration (SBA) and through the U.S. Department of Agriculture (USDA).

MetroAction specializes in working with people who cannot borrow from a bank due to lack of business experience, credit history or insufficient collateral.  To learn more about all of our funding programs, visit http://metroaction.org/loans.html.

B = Build better credit! MetroAction loans provide an opportunity for small business owners to build or rebuild personal credit history and raise credit scores.  As clients make on-time payments on their small business loans, MetroAction reports the payments to the major credit bureaus. This builds positive credit history and increases a borrower’s level of creditworthiness in the eyes of lenders.

If you need help repairing your credit, we partner you with Consumer Credit Counseling of NEPA. Together, we can help you assess your credit and make necessary changes to improve it!

C = Coaching through Smart Start! MetroAction’s Smart Start mentoring program, through an innovative collaboration with SCORE, pairs borrowers with a SCORE counselor for free one-on-one small business coaching.  Counselors can help develop various aspects of your business including:

•    Starting a business: licenses, taxes, permits, resources
•    Business plan development and review
•    Marketing
•    Financial and cash flow analysis
•    Management
•    Business operations
•    And much more!

Full details on our lending and mentoring programs can be found at http://www.metroaction.org/.

MetroAction can help!  We have unveiled our brand new webinar series designed specifically for those who want to attend seminar and training programs, but can’t make it to our on-site programs.

MetroAction has converted some of our most popular seminars to launch the webinar program.  They include:

• Business Basics
• Financing Your Business
• Marketing 101
• Applying for a Small Business Loan
• Writing a Business Plan
• Submitting Your Business Planning Templates

And, we’re planning on offering more topics this fall, such as Facebook for Beginners, Grant Writing 101 and Building Better Credit.

There is no special equipment required.  All you need is an internet connection and a phone line.  It’s really that easy!

Stay tuned for more details!

Janice Scarantion, owner of Busy Bees Learning Center

Today’s economic climate is slowing down (or even stopping!) business for many businesses.  But, not for MetroAction.  This year, we are experiencing a 243% increase in small business loan requests!  And, we’re ready to answer the call!  We have plenty of funding to lend and a streamlined application process that makes it as easy as 1-2-3 to apply for our loans.

A recent article in the NEPA Business Journal describes how MetroAction’s loan programs are a good fit for businesses that want to start or expand their business during a challenging economy.

More importantly, though, our loans are making a difference.  Just ask:

Paul Nardone
“I wanted to continue to evolve Outrageous and Anthology, and I knew I needed help. So I reached out to MetroAction.  The streamlined application process made it easy for me to obtain a loan to upgrade my equipment and take on new product lines.  And loans are only part of what MetroAction does. Their Small Business Institute has given me plenty of resources and insight for my business. MetroAction is a great resource!”
Paul Nardone, owner
Outrageous and Anthology, Scranton

Janice Scarantino
“MetroAction was a great help for us.  They didn’t just decline our loan request when they saw that we weren’t 100% prepared.  They took the time to help us develop our business plan so we could apply for financing.  We wouldn’t be here today with the counseling and guidance we received from MetroAction.”
Janice Scarantino, owner
Busy Bees Learning Center, Wyoming

Christine Kromko
“MetroAction believed in us as we believe in ourselves.  Their understanding of our needs and willingness to provide financing cannot be understated.”
Christine Kromko, partner
Jake’s Carpet, Hamlin

You’ll never know unless you apply!

Did you know that MetroAction offers loans up to $50,000 for small businesses that aren’t able to obtain bank financing?

Since 1997, MetroAction has helped more than 200 small businesses obtain over $2.8 million in financing.  We cover 8 counties in northeastern PA, including Carbon, Lackawanna, Luzerne, Monroe, Pike, Susquehanna, Wayne and Wyoming.

We’ve funded restaurants, child care providers, manufacturers, doctors, technology companies, attorneys and many other business types. In today’s economy, with banks tightening their credit policies, start-up and expanding small businesses are having a harder time finding the credit they need. What sets MetroAction apart from traditional sources of financing is our ability to be flexible when evaluating a loan request. Whether it’s slow cash flow, credit scores or collateral that is standing in your way, we may be able to help.

About MetroAction’s Loan Programs:

• Terms: 2-5 years
• Interest rates are fixed for the term of the loan
• Funds can be used for working capital, equipment/inventory purchases, renovations, etc.
• No pre-payment penalty
• We service 8 counties in NEPA:  Carbon, Lackawanna, Luzerne, Monroe, Pike, Susquehanna, Wayne and Wyoming

MetroAction is an approved lender through the U.S. Small Business Administration (SBA) and the U.S. Department of Agriculture (USDA).

Visit our website for answers to frequently asked questions about our programs.  You can also apply online or download a Pre-Qualification Application.  For more information contact us at info@MetroAction.org or (570) 341-0270.

When banks can’t help…MetroAction can!  Call us today!

It starts with a vision.  If you take a walk down Center Street in downtown Scranton, you’ll come across an eclectic small business run by a man with big dreams and even bigger determination. Paul Nardone saw the potential in this up-and-coming city.  He didn’t see an older community with crumbling infrastructure.  He saw a thriving city that was bustling with new life and filled with opportunity.  After leaving his corporate career in November 2003, Paul opened It’s Outrageous, a unique boutique and coffee-house in the heart of downtown Scranton.  In 2008, he acquired Anthology, a new and used bookstore located directly above his business.  Today, Outrageous and Anthology is well-known as a place where you can find distinctive gifts or relax with a good book and a hot cup of coffee.

Since the beginning, there were plenty of challenges for Paul to overcome.  For the first three years, his street didn’t have a name and his business didn’t have a front door.  But through his vision, he saw opportunity.  Today, like most businesses, Paul is pushing through the economy.

Paul recalls, “I wanted to continue to evolve Outrageous and Anthology, and I knew I needed help. So I reached out to MetroAction.”  Paul applied for a loan online at www.MetroAction.org.  The streamlined application process made it easy for him to obtain the $15,000 he needed to upgrade his equipment and take on new product lines.  “MetroAction is a great resource,” added Paul.  “The MicroLoan program is only part of what MetroAction does. Their 8-week Small Business Institute has given me plenty of resources and insight for my business.”

Paul was a pioneer on Center Street, as he was well ahead of most of the progress in downtown Scranton.  But with perseverance and a solid business strategy, he has built his dream.  Paul concludes, “MetroAction took a real interest in me and my business.  The staff took the time to understand what we do and how we have contributed to northeastern Pennsylvania.”

Business.gov, a website committed to providing businesses with access to government services and information, has recently developed a business Toolkit. The Toolkit is a “gadget” specifically designed for small business enterprises.

A “gadget” is a small object that can be posted to any website simply by cutting and pasting a code to the webpage. “Gadgets” offer various resources that are automatically updated everyday.

The new “gadget” provided by business.gov offers a wide variety of information and resources that are relative to small business owners. The features that this “gadget” offers are as follows:

• Explore information, forms, and contacts at all levels of government.
• Peruse current topics pertaining to small businesses.
• Research applicable licenses and permits pertinent to your business.
• View media clips offering advice from top entrepreneurs.

This is a quick, free, no maintenance reserve that provides you, and the ones that visit your website, with the latest information and resources related to small businesses. To obtain the code that will allow you to post this business Toolkit to your company’s website, visit www.business.gov.

MetroAction recently awarded Kevin Messet of New Seasons Financial, with a trip to Woodloch Pines for referring a client to MetroAction during our  Spring Referral Incentive Program. Other prizes were awarded to Jeff Reimer, Pennstar Bank and Eileen Sokol, Pennstar Bank.  MetroAction appreciates the assistance and support of our referral partners and will continue to award their efforts in our fall Referral Incentive Award Program.  For more information, contact Christina Hitchcock at (570) 342-7711.

The recent crack-down on the number of loans that banks approve has driven business owners to other sources, such as community development financial institutions (CDFI) for the money that they need. MetroAction is one of these institutions and they are committed to stimulating economic growth by providing small business loans and helping small businesses succeed.

But no matter what kind of institution you look to for a loan, your chances of loan approval will increase greatly if you meet a few important criteria. They are known as the 5 C’s of Credit.

1. Capacity – Any financial institution will be reluctant to approve you for a loan if they do not think that you have sufficient capacity to repay the debt. Financial institutions will consider your business cash flow, past payment records on other loans and commercial debt, and the likelihood of your repayment of the loan.
2. Capital – Capital is what you have personally invested in your business. You will be more likely to receive a loan if you have significant personal investments in your company. Having a large interest in your business shows lenders that you are committed to making your business succeed, which, in turn, increases their chances of receiving full loan repayment.
3. Collateral – Collateral is another kind of guarantee that will make loan approval easier. It is something of value, besides cash, that can be used to repay a loan should your original form of repayment not be substantial enough.
4. Conditions – Conditions are what you plan on using the loan for. It is important that you specify exactly how a loan will be used. A lender may also factor in how the local economy is doing and the economic state of your type of business when considering a loan request.
5. Character – Character is the vibe or impression that you radiate. This helps a lender decide whether or not they think you are a person of honor and morals. Such a person is more likely to repay a loan and thus is more likely to receive a loan. A background check and the quality of the references that you provide will also weigh into the decision.

To learn about what lenders look for when reviewing a loan request, attend one of MetroAction’s Small Business Resource Clinics.  These free seminars are held regularly throughout our 8-county service area.

Well, here’s some good news from the IRS.

As part of the economic stimulus package that the government has recently provided, many businesses are eligible to receive a major tax break on purchased property for the year that the property is put into use. This means that there is a 50 percent depreciation allowance on qualified property.

Depreciation is the decrease in value of a given piece of property due to the natural effects of entropy. Normally, the cost of this wear and tear would be expressed on a company’s balance sheet over several years. With the new depreciation allowance provided by the government, a business can now write off half of qualified property as one lump sum, for property costing up to $250,000.

This allowance will keep some money in your pocket when April 15th rolls around. It has long been said that poor cash reserve is one of the main reasons for small business deterioration.  More money means that your business will have a much better chance for success.

For more details on the new depreciation allowance, visit www.irs.gov.

As always, MetroAction recommends that you consult with your accountant and/or attorney for all relevant business matters.