Financial Forecasting & Loan Packaging
NBDC will help a business develop detailed financial projections covering three years of operations, information that is essential for successful loan application, investor pitches, and government grant application. These include forecasted:
- Income statement
- Cash flow statement
- Balance sheet
- Loan amortization schedule
- Capital expenditure budget
When lenders require it, NBDC can provide an independent business valuation.
NBDC will help businesses identify funding sources and prepare a loan or grant application or investor pitch. Assistance can be sought for funding strategies, including:
Traditional Bank Loans
Commercial loans (through banks and credit unions) are a common source of financing for small businesses. Lending institutions consider several factors when deciding which businesses to finance, including: a company’s operating history, its ability to repay the loan, strong positive cash flows, and assets to be used as collateral. Personal guarantees are generally required from the borrower in addition to a 20-30% contribution (owner’s investment) towards the total cost of the venture.
SBA Guaranteed Loans and Microloans
The US Small Business Administration (SBA) loan guarantee programs help small business owners obtain financing that they would not be able to secure otherwise. The SBA does not lend money directly to small business owners, but provides a guarantee on loans made by commercial lenders, i.e. bank, credit union, micro-lender, etc. (Application is made to a lender, not the SBA.) The SBA Microloan Program was developed to provide small loans up to $50,000. These microloans are administered through non-profit lending intermediaries.
SBIR/STTR Research Grants
Grants are offered through eleven federal agencies to encourage small businesses engaging in research with commercialization potential. The State of Nebraska offers matching funds. NBDC provides comprehensive assistance to clients interested in pursuing these funding opportunities.
USDA Guaranteed Loans
The Business and Industry (B&I) Guaranteed Loan Program is a loan guarantee program designed to assist credit-worthy rural businesses obtain needed credit.
DOE Energy Efficiency and Renewable Energy Grants
Department of Energy Office of Energy Efficiency and Renewable Energy supports small businesses bringing clean energy initiatives to market
Angel Investors: Early stage investors seeking high growth potential businesses that are interested in mentor relationships as well as funding. NBDC is a sponsor of Nebraska Angels
Venture Capital: Funds from professional investment organizations that invest in growing industries in order to make a profit. They manage money from investors seeking private stakes in businesses with high growth potential. There are two in Nebraska: Nebraska Global and Dundee Capital.
Crowdfunding: The practice of funding a venture by raising small amounts of money from a large number of people, typically via the Internet. The Securities Exchange Commission (SEC) is currently developing regulations for this practice. Learn more about crowdfunding.