By Gwen Green
Small Business Lenders Rely on Center’s Expertise and Experience
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am Turner of Mountain Home wanted to buy an established local business, so she contacted a local bank, FNBC. One of the first steps the bank suggested was getting in touch with the Arkansas Small Business and Technology Development Center. “I’m thankful the bank pointed me to the center. The one-on-one assistance with my business plan and financials, and the ASBTDC business financing seminar I attended, gave me the tools I needed to get funding to purchase PolyClean,” said Turner, who obtained a loan and line of credit from FNBC after working with Laura Miller of the Arkansas State University ASBTDC. Chad Hudson is regional president and chief lending officer for FNBC Bank. The community bank has locations in north central and northeast Arkansas. According to Hudson, when FNBC customers want to start or grow a small business, the bank often recommends ASBTDC’s help. “For someone looking to start, purchase, or expand a business, the process and information needed can be intimidating. ASBTDC is an excellent resource for helping these individuals navigate the planning and the process,” he said. Now with Southern Bancorp in El Dorado, Carl Sivils has worked in banking in Arkansas for three decades. He became acquainted with ASBTDC about seven years ago and has been referring customers to the center ever since. “Some entrepreneurs in the beginning know what they want to do, know how to do it, and have a game plan on how their idea would make money. However, sometimes they don’t have a business back-
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ground and need some assistance in putting their idea into a structured request. This can be very frustrating and stressful for the individual. ASBTDC works with individuals and gives them guidance on what a lender is going to need to make an informed decision when looking to fund a loan request,” said Sivils.
215 Capital Projects in 2019
In 2019, ASBTDC consulted with 204 new clients who were referred by lenders. Around the state, the center assisted with 215 funded projects last year, ranging in size from $5,000 to $6.6 million. In total, clients obtained $72 million in capital investment with the center’s help. The university-based program serves the entire state through a network of offices. Funded by the U.S. Small Business Administration and seven host universities, ASBTDC provides information and tools to build successful businesses. One-on-one assistance is available free of charge. “We provide guidance and direction to help clients be prepared with the information that a lender needs to see. Our assistance also helps clients be better borrowers,” said Heather Robinette, ASBTDC’s entrepreneurial services manager. “We encourage lenders to see us as the place to send bankable projects. Banks can refer any type of loan project to us,” she said. “It doesn’t matter if it is an SBA loan or not.” While welcoming bank referrals, Robinette also notes the limits of ASBTDC services. Consultants cannot work with non-profits or provide tax or legal advice, she explained. In some cases, consulting may be premature. “Individuals who are still nailing down their business idea and are in the basic concept stage aren’t ready for consulting. They need to come to one of our training events or use the resources on our website,” said Robinette. “Likewise, folks who are not yet bankable due to personal financial issues typically need to address those first before diving into business planning with us.”
