Financial Support

Getting Started

In most circumstances unless you are a non-profit organization or have a doctorate in a very special skill the chances of getting a grant are very slim, but there are a few legitimate places to look for your opportunity.

Some infomercials promise new entrepreneurs that there are millions of government dollars waiting for you, if you want to buy their books to find out how. It’s almost sure to be a let down if you send them any money. However, if you want to search for potential grants that you may qualify for, www.grants.gov is a legitimate site where you can fill out a form that will give you free listings of all grants in your category. Then hire a good grant writer and start hunting!

Some of you may have heard about grant opportunity from the county tourism board. This is because there are a few governmental and non-profit agencies that have received grants to give grants but the amounts are usually very small, typically under $1,000.

It is good to be realistic about the financial impact of running your business. Understanding all of the financial responsibilities and being prepared are the best way to prevent your new business from going under.  Making a mock budget and being prepared to cover your expenses for the first two years is often advised. Consider things like rent, salaries, fees, taxes, utilities, advertising, signage, and inventory.

The Oakridge Economic Development Advisory Committee is all about keeping you open for the long haul; we would like to see your business here for many years if not the rest of your life, so our goal is to be sure you have considered all realistic options. There are banks and other financial institutions available to help you financially if that is an avenue you want to consider.

Most, if not all, of these financial resources will require a business plan and they like to see a credit score somewhere at least above 650; better yet 750.  Nonetheless, the business climate of 2012 means the higher the credit rating the better. Go to annualcreditreport.com for a truly free credit report (Contrary to its name, FreecreditReport.com does NOT provide free credit reports.)

With that in mind be prepared to do a lot of research and a lot of planning before asking anyone for funding. The good news is this is basic research that you would need to do anyway if you’re serious about wanting a successful business. There are many business plan samples online that one can download for free and tutorials on how to write them, such as this one at the Small Business Administration website: app1.sba.gov/training/sbabp/index.htm But just to give you an idea here is the kind of information you’ll need to know.

  • How much will this cost to make (not just materials but staffing, utilities, etc. all factored in)?
  • How much will I sell it for?
  • Who are my customers? How will I reach my customers?
  • What makes my product better/different than others?
  • How much will staffing cost?

If you can answer these and similar questions you will prove to a lender that you know what it will take to operate your business at a profit.

Software like Business Plan Pro can make this process far easier. This program, which is available to use on the computer at the Oakridge Library, has templates where you fill in the blanks. Want to open a pet store? Open the Business Plan Pro template for that, fill in your name and other basic information and it will create the business plan for you. If you would rather buy this program you can find it online at www.paloalto.com It costs about $100 but is worth the price.

The last important thing to remember is that you should have your Trinity of Management in place: that is, people who will perform the tasks of operating your business “beautifully, passionately and well.” No one does everything well, so be sure that besides having a manager for the product or service itself, you have expert help marketing and selling that product or service, and someone sincerely skilled and excited about managing the financial end of the business. Usually one person is good at two of the three things and will need help with either the marketing/sales piece or the financial management. You may know someone who does well what you do not, and if you want to stay in business you might be well to take advantage of that person’s skill.

Below is a list of groups and organizations that can help in different aspects of new business development and finances.

Governmental and Non-profit Agencies

The Ford Family Foundation. This Oregon based foundation makes small grants to rural entrepreneurs and scholarships for education that will help a person contribute to their community. Contact: 541-957-5574 www.tfff.org

Lane Council of Governments (LCOG). This organization is fully funded to offer super low interest loans to businesses.  The amounts can be large or small but will require a business plan and a decent credit rating. People who work with UPBEAT have a leg up on working with LCOG. Contact: 99 E. Broadway, Suite 400, Eugene, OR 97401, 541-680-4283, www.lcog.org 

Cascades West Financial. This non-profit group has close ties with LCOG above and has funding for small business loans, especially for women and minority owned businesses. Take your well-developed business plan to the SBDC, (see below) have them approve it and recommend your idea for a loan, and submit it to Cascades West. This is how a very popular Uptown business got the money to start. Contact:1400 Queen Ave. SE, Suite 205-C, Albany, OR  97322.  

eDev (formerly Lane Microbusiness). This agency helps microentrepreneurs achieve success with classes and grants. This could work a couple of ways. You take the classes and have a leg up with the Small Business Administration (see below); or, if you qualify financially (very low income), you take the classes and start saving your money--as little as $20 a month--and you'll get a small grant. Under this second program, for every $1 you save they will give you $3, up to $4500, meaning you could have $5500 just for taking the class and learning something you probably need to know anyway. The only warning is that at first they manage your money, so if you need a widget for your business they buy the widget for you. This assures them that the money is going for a real business expense. Over time and as you finish the 18 month course you will start being able to manage your own money. Whether you qualify for the grant or not eDev works closely with the Small Business Development Center and Small Business Administration so funding even larger amounts will be easier.  Contact:1445 Willamette Street, Eugene, OR 97401, 541-463-4616, www.edev.org

Lane Community College Small Business Development Center (SBDC). The SBDC is located in the same complex as eDev and right next door to the Eugene Chamber where the offices of the Senior Corp of Retired Executives (SCORE) is. The SBDC offers low cost classes and is also linked with the Small Business Administration. Though they do not make loans themselves, by working with the SBDC you will have a better chance with the SBA. Contact: 1445 Willamette, Eugene, OR, 97401, 541-463-5255, http://www.lanesbdc.com

Oregon Economic and Community Development Department. The state has many programs available, most of which are managed through local agencies.  Nonetheless, it is a good idea to look this website over to see what sorts of things you'll need to get funding from the state.  Contact: 775 Summer St. NE, Suite 200, Salem, OR 97301 503-986-0168 http://www.oregon4biz.com/  

Business Oregon Global Trade. This is only good if you have something that will be traded globally.  The department has been hard hit by recent state budget cuts. Contact: 503-229-6055.

Business Oregon Clean Energy. This is only good if you have something that is related to clean energy.  The department has been hit hard by recent state budget cuts. Contact: 503-229-5223, www.oregon4biz.com/map3.php. 

Oregon Business Retention Services. This program offers consulting services. Contact: 503-986-0161 or 0172, www.oregon4biz.com 

Brownfields Redevelopment Fund. This is only good if you have something that will redevelop a brown field area (severely polluted).  The department has been hard hit by recent state budget cuts. Contact: www.oregon4biz.com/Business-financing-resources/Oregon-Finance-Programs/...

Building Opportunities for Oregon Small Business Today (BOOST). Funding for BOOST has also been hit by state budget cuts and the small grants ($2,500) they offer are VERY competitive. Contact: www.oregon4biz.com/Business-financing-resources/Oregon-Finance-Programs/...

Entrepreneurial Development Loan Fund (EDLF). Funding for this SBDC affiliated program has also been hit by state budget cuts and loans are only available to severely disabled persons or existing businesses with less than $500,000 in revenue. Contact: www.oregon4biz.com/Business-financing-resources/Oregon-Finance-Programs/...

Travel Lane County. This group provides very small grants (usually less than $1,000) to businesses who do things directly involved in bringing tourists to an area.  These funds are for events or services tied to a tourist attraction in Lance County. Contact: 3312 Gateway St., Springfield, OR 97477 (Near Best Buy, next door to Michaels), 541-484-5307  www.TravelLaneCounty.org 

Small Business Administration (SBA). This website will give you access to probably the greatest single source of governmental financing for small businesses.  It will take you step-by-step through the process the SBA requires to give loans.  The loans the SBA gives are low interest but will require a business plan, collateral, and a decent credit score.  As mentioned above, the SBA works with Lane Small Business Development Center, eDev, and other agencies designed to help entrepreneurs achieve success.  In the Oakridge and Westfir area only Siuslaw Bank is eligible to give out SBA loans. Contact: www.sba.gov/smallbusinessplanner/plan/getready/serv_sbplanner_stguide.ht...

United States Department of Agriculture Rural Development.   While this agency makes very few loans to individuals --mostly to people who have already bought property and are seeking funds to fix it up as low income housing or for community economic development business centers -- it is the agency that many of the above and the city of Oakridge gets funding from. Therefore it's probably a good idea to familiarize yourself with what they do. On May 28 2010 they became a part of multi-agency workshops on Government Loan Programs in Eugene. Contact: https://www.usda.gov/topics/rural

Banks and Financial Institutions

Refer to the links below for local banks and credit unions.

Other options to consider:

Southern Willamette Angel Network (SWAN). Affiliated with the Eugene Chamber this group of Venture Capitalists is very selective and money is very tight now. Contact: 541-242-2300, www.eugenechamber.com/business/swan.aspx 

Tribal groups

Mercy Enterprise Corporation. Contact: 2069 NE Hoyt, Portland, Oregon, 503-236-1580 www.mercycorps.org/topics/financialservices

Oregon Association of Minority Entrepreneurs. Contact: www.OAME.org

Avista Corp. These funds can be tough to get, you must have a comprehensive plan and not need much more than $25,000. Contact: 541-882-1340, www.avistacorp.com

 

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