Funding & Credit
Welcome to a portal for resources and information on how to find sources of funding in the Las Vegas for small business. The Chamber recognizes the importance of the continued growth of small business in Southern Nevada and its impact on the economic resurgence in Las Vegas.
Listed below are organizations to help answer your questions about financing your business needs:
Search the Chamber's Business Directory for a list of member banks.
The NSBDC's website provides access to information about Federal Assistance for tech firms and start-ups.
Links regarding Finance and Incentive Programs:
- Industrial Development Revenue Bond Program
- Junior Agricultural Loan Program
- Micro-Enterprise Loan Fund
- Nevada Development Capital Corporation
- Rural Nevada Development Corporation
- Southern Nevada Enterprise Community Loan Program
- U.S. Small Business Administration Loan Programs
- U.S. Department of Agriculture Rural Development Loan & Grant Programs
Before seeking financial assistance, ask yourself the following questions to evaluate your business’s financing needs:
- Do you need more capital or can you manage existing cash flow more effectively? How do you define your need?
- Do you need money to expand or as a cushion against risk?
- How urgent is your need? You can obtain the best terms when you anticipate your needs rather than looking for money under pressure.
- How great are your risks? All businesses carry risks, and the degree of risk will affect cost and available financing alternatives.
- In what state of development is your business? Needs are most critical during transitional stages.
- For what purposes will the capital be used? Any lender will require that capital be requested for very specific needs.
- What is the state of your industry? Depressed, stable, or growth conditions require different approaches to money needs and sources. Businesses that prosper while others are in decline will often receive better funding terms.
- Is your business seasonal or cyclical? Seasonal needs for financing generally are short term. Loans advanced for cyclical industries, such as construction, are designed to support a business through depressed periods.
- How strong is your management team? Management is an important element assessed by lenders.
- How does your need for financing mesh with your business plan? If you don't have a business plan, make writing one your first priority. All capital sources will want to see your business plan for the start-up and growth of your business.
Questions Your Lender Will Ask
Before you apply for a loan, you need to think about questions like these:
- Can the business repay the loan? (Is cash flow greater than debt service?)
- Can you repay the loan if the business fails? (Is collateral sufficient to repay the loan?)
- Does the business collect its bills?
- Does the business pay its bills?
- Does the business control its inventory?
- Does the business control expenses?
- Are the officers committed to the business?
- Does the business have a profitable operating history?
- Does the business match its sources and uses of funds?
- Are sales growing?
- Are profits increasing as a percentage of sales?
- Is there any discretionary cash flow?
- What is the future of the industry?
- Who is your competition and what are their strengths and weaknesses?
Banks and other lending institutions offer a number of SBA guaranteed loan programs to assist small businesses. While SBA itself does not make loans, it does guarantee loans made to small businesses by private and other institutions. Below is an overview of SBA’s guaranteed loan programs. For more information, click on the name of the program.
This is SBA’s primary and most flexible loan program, with financing guaranteed for a variety of general business purposes. It is designed for start-up and existing small businesses, and is delivered through commercial lending institutions. The major types of 7(a) loans are:
This program provides long-term, fixed-rate financing to acquire fixed assets (such as real estate or equipment) for expansion or modernization. It is designed for small businesses requiring “brick and mortar” financing, and is delivered by CDCs (Certified Development Companies)—private, non-profit corporations set up to contribute to the economic development of their communities.
This program provides small (up to $35,000) short-term loans for working capital or the purchase of inventory, supplies, furniture, fixtures, machinery and/or equipment. It is designed for small businesses and not-for-profit child-care centers needing small-scale financing and technical assistance for start-up or expansion, and is delivered through specially designated intermediary lenders (nonprofit organizations with experience in lending and technical assistance).
Source: Small Business Administration
SCORE provides access to Ibank.com a centralized clearinghouse for loans. Simply choose the type of loan, the amount, the location and the type of loan and the website matches you with lenders in your area. Counselors are available to help you prepare for your loan and to help you meet with your financial institution.