Can a non-profit establish business credit?

There are a few credit builder products available from some CDFIs, including MCE and EDG. They are very small loans that are easy to pay back to establish credit.

What factors go into determining whether to take a out a business loan, line of credit, use an investor or a combination of any of the above?

yes!!!!

It is a lot tougher for a nonprofit to build up small business credit. Many small business lenders lend to for-profits only. If you can find a small credit builder loan, that’d be great. Otherwise, a business credit card - used with some regularity and paid as agreed - can help you build credit.

Thanks Jan!

When you are deciding whether to get a term loan or line of credit, etc., first - what will be your use of funds? If you need the full amount at once to buy equipment, etc., a term loan makes the most sense. If you expect to use the funds over a period of time, a line of credit would be best. However, there are fewer line of credit products available to small businesses, so you may not have the option. If you are looking at investors, consider whether you are willing to give up an ownership interest in order to raise funds.

This may sound obvious but it’s so important to be able to demonstrate to a lender/investor that you will be able to repay the loan! Your cash flows and projections here are so so important

Yes…happing to me right now. My Chase Business Credit card does not report.

I agree with Kaetlyn.

I agree with Kaetlyn. Having a positive, open relationship with a lender is important.

What can we do as we are a non-profit with a business plan and offer a good SROI to get started with providing services to possibly generate a good name to get possible funding? Do the financial businesses represented offer grants to start ups?

Kiva does not offer grants but we do our best to offer loans to start ups because we know how difficult access to capital for early stage entrepreneurs

Baltimore Corps has another program known as the Elevation Awards which has a grant. Applications usually open in the fall so if youre interested then, make sure to check back in: https://www.baltimorecorps.org/elevation-awards

Yes Bonnie!! I totally agree about the ecosystem…and we all know each other! So as you build your capital foundation, you can use us as recommendations

For other lenders

Baltimore Community Lending does not make grants. Although, we have had funding to make loans to businesses who have been extremely impacted by COVID. And we may have more COVID grant funds in the near future. But that is an exception, not our usual line of business.

I mean COVID grants (not loans).

For all Vendors - could you let us know what it the minimum and maximum amount they can loan to us? What are your rate range currently?

Correction - For all Vendors - could you let us know what is the minimum and maximum amount they can loan to us? What are your rate range currently?

Baltimore Community Lending makes loans to startups from $10,000 to $50,000 (3-7n year terms) and to existing businesses up to $150,000 (up to 10 year terms). Currently, our loans are at a fixed interest rate of 9.25% with a discounted rate for women owned businesses of 7.25%.

Re: how many years you need to be in business for COVID grants depends on the grant program. Most require that you were in business in 2019 so that you can demonstrate an income loss.

Very exciting Bonnie!

Janice Walker-EmeogoSmall Business State Outreach DirectorOffice of Small Business Regulatory AssistanceMaryland Department of Labor500 North Calvert StreetBaltimore, MD 21202janice.walker1@maryland.gov

Kelly Swann

Jim Peterson - jpeterson3@mtb.com

Avonette Blanding - Avonette.b@gmail.com

Kelly Swann- www.ktrpartners.com

Bonnie Crockett, Director of Small Business Lending, Baltimore Community Lending. Bonnie.Crockett@BCLending.org. 443-717-3627.

Kaetlyn BernalKiva@baltimorecorps.org520-784-3946https://www.baltimorecorps.org/kiva

Also, everyone is invited to attend our annual pitch competition happening on March 4th! We will have 5 entrepreneurs from the Kiva network (and one person from last year’s BMB Cohort) https://www.eventbrite.com/e/kiva-baltimore-pitch-competition-2021-tickets-138275033347

https://grants.maryland.gov/pages/stategrants.aspx-State of Maryland Grants site.

I think it’s up to 10k now for the facade grant

https://www.grants.gov/ (Grants.gov)

State of Maryland's Covid-19 Financial Assistance webpage-https://govstatus.egov.com/md-coronavirus-business/financial-assistance

Thanks to each panel member. You shared great information.

Panel. Thank you kindly for enlightening us on our financing needs and the different avenues for obtaining it.

Since we’re talking about legal support, this is a good resource for Black entrepreneurs and pro-bono support: https://www.mslaw.com/black-business-start-up-initiative

That was great Jan!

That’s my guilty pleasure Bonnie!

Thanks Oslyn Cummings!

To prep for our pitch competition in March, we hosted a pitch workshop with Jim Peterson!! If you’re interested in seeing a recording, check this out: https://www.youtube.com/watch?v=KGvvL7nMsSM&feature=youtu.be

Thank you everyone! Great advice.

It was a pleasure connecting with everyone. Have a great evening.

Amazing…Great Job Everyone!

Great evening everyone. I will be a judge next week. Looking forward to it!

Thanks all!!