Pulse Beat November 2016 by City of Paramount

Paramount pulse Beat pulse Beat

november 2016

ACE Clearwater Hosts - MFGDAY2016 -

National Manufacturing Day, or MFGDAY2016, was just celebrated across the country and the Southern California region. More than 2,500 companies nationwide opened their doors to students, graduates, teachers and curious professionals eager to see what manufacturing looks and feels like today. They came to see what technologies and innovations are transforming the industry – into one which provides rewarding, creative challenges, safer environments, sustainability, and solid career opportunities to a strong workforce.

ACE Clearwater, based in Torrance, with facilities in Paramount and Compton, hosted a very special event (in its fourth year) with 35 of its employees manning 20 different work centers, demonstrating very specific, advanced metal forming, stress and strength analysis, welding and assembling – all coming from their production of custom aerospace and power generation components.

Jay Timmons, President and CEO of the National Association of Manufacturers (NAM) travelled from Washington, D.C. to join Kellie Johnson, President of ACE Clearwater and Vice President Gary Johnson, who is also currently President of the Paramount Chamber of Commerce, at the event. Eleven of ACE’s key suppliers were also present to demonstrate the technologies they provide to ACE and the industry. Those suppliers included Matheson TriGas, Lincoln Electric, Stratasys 3D Printers, FARO Laser Measurement, Fanuc Robotics, 3D Infotech, Verisurf 3D Software, GoEngineer, and STEM Energy Storage Solutions. More than 650 local area middle and high school students, along with local community college attendees, graduates and their respective teachers came to the Compton facility to learn, share and discover what

Paramount Chamber of Commerce pulse beat

15357 Paramount Boulevard, Paramount, CA 90723

manufacturing is today. From Raw Material Traceability through Final Inspection, each work station gave students a first-hand look into 3D Printing, Precision Laser Measurement, Non-destructive Testing (NDT), Welding Simulators, Quality Inspection, Hands-free Computer Operations, Reverse Engineering, 400-ton Hydroforming, Computer-driven Plasma Laser Cutting/Trimming, Drop Hammer Metal Forming, Battery-powered Plant Power Operations, Robotics, Virtual Reality Visors, Part Identification Controls and 3D Modeling Software. Guests also learned about Outstanding Women in Manufacturing at a STEP Ahead Program exhibit, a yearly national recognition of 150 women and their vital roles in business, sponsored by the National Association of Manufacturers.

Schools who participated this year were Paramount’s Alondra Middle School and Paramount High School–West Campus, El Camino College, Hawthorne High School, Buena Vista High School, Sato Academy of Mathematics and Science, L.A. Harbor College, Paramount Community Day School, Cabrillo High School, Mt. San Antonio College Welding Class, and Lynwood High School. Joining these great schools were companies who wanted to learn from ACE’s event for their own Manufacturing Days, King’s Hawaiian Bakery, McMasterCarr, Geoform and the L.A. Job

Corps. The California Manufacturers and Technology Association also attended.

After a bustling tour, extreme discovery and in-depth learning experience, all guests enjoyed a gourmet food truck lunch outside under open tents, for an after-event discussion of everything they saw.

“In the four years ACE has been hosting MFGDAY, we have to admit that this year was, hands-down, the best one ever,” says Arthur Wong, Director of Facilities for ACE. “We are going to be hard-pressed to improve on this next year! But we will try, never the less…”

Students test their skills on the welding simulator.

Recipient of Senator Ricardo Lara 2015 Excellence in Business Award

The Holidays are Almost Here

Paramount has been home to a full slate of happy holiday events for decades. From Thanksgiving to midDecember’s Snow Day, the City’s seasonal activities bring out thousands of community members to celebrate and share the joy. Here’s the line-up for this year.

Thanksgiving Trash/Street Sweeping

Thanksgiving will alter the garbage collection schedule slightly this year.

If your pick-up day falls on Thanksgiving, which is Thursday, November 24, your trash will be collected on Friday (November 25), along with Friday’s normal service.

If you have any questions, please call CalMet Services at (562) 634-5420. With street sweeping, there will be no service on Thursday, November 24 or Friday, November 25, and no make-up.

Get Your Tickets for the Seniors Thanksgiving Dinner

On Thursday, November 17, our senior citizens will gather for the 36th Annual Thanksgiving Dinner at the Paramount Park gym. The party starts with music by Grupo Neblina and dancing. There will be raffle prizes, a singalong and, of course, a delicious turkey feast.

The doors open at 10:00 a.m., the meal will be served at noon, with the event scheduled to wrap up at 1:00 p.m.

Business leaders from the Paramount Rotary Club, students from Paramount High School’s Corsairs Club, and members of City staff will be serving the food.

Although the day is free for Paramount residents, everyone still needs a ticket to attend. You must be 60 years of age or older and present proof of Paramount residency or a Senior Nutrition Program membership card.

Tickets are available at the Paramount Park Community Center, Monday through Friday from 9:00 a.m. to 4:00 p.m.

Non-residents can buy tickets at a cost of $3.25 each from the same location.

For more information or questions, please call (562) 220-2090. Paramount Park is located at 14400 Paramount Blvd.

18th Annual Tree Lighting

Come and join your friends and neighbors at the City’s annual Holiday Tree Lighting Ceremony at the Paramount Pond. This year’s 18th seasonal kick-off will be on Wednesday, November 30, starting at 6:00 pm.

Local dance companies, church choirs, Mariachi Los Palmeros, and the Paramount High School choir will provide entertainment. There will be a special visit from Santa Claus, as well. And plenty of cookies and hot chocolate will be available for the crowd.

The Pond is located at the intersection of Jackson St. and Paramount Blvd. For more information, please call (562) 220-2121.

Photos With Santa at Paramount Park

This is something new the City is presenting this year, a chance to have professional photos taken of your kids (or whoever else) with Santa. It will take place Saturday, December 3, from 9:00 a.m. to 4:00 p.m. at Paramount Park Community Center where a festive room will be decorated for the occasion.

For $10, you will get one 5x7 photo and four wallet photos. Additional photos can be purchased there, or from the photographer’s website. (You will not be able to take photos with your own camera.)

All purchases will support the Paramount Education Partnership’s college scholarship fund. For more information, please call (562) 220-2121.

Buy Your Tickets for the 44th Annual Breakfast With Santa

Santa Claus will make his last appearance in town on Saturday, December 10 when Paramount Park becomes a winter wonderland filled with snow and the location of a tasty breakfast from 8:00 a.m. till noon.

There will also be holiday craft-making, giveaways, and entertainment. Kids six and younger can romp in the snowfield, and there will be a ramp for sledding and a kiddie train running in the park.

In the Community Center from 8:00 to 10:00 a.m. you can have professional photos taken with Santa – $10 will get you one 5x7 photo and four wallet photos. Then, from 10:00 a.m. to noon there will be a “selfie station” with Santa in the park at no charge (using your own camera).

The overall event is free to attend, but you need to buy a ticket for the food. A limited number of tickets are now available for purchase until December 9 (Mondays through Fridays only). Presale breakfast tickets are $5 per person, which also gives you access to the fast-pass lane. (The price of a ticket at the door on the day of the event is $5 per person, first come, first served, with no fast-pass access. Breakfast will not be served after 11:00 a.m., so get there early.

You can buy tickets at a variety of locations in town: STAR Afterschool sites (between 2:30 p.m. and 6:00 p.m. each day); the Recreation office (15300 Downey Ave. from 8:00 a.m. to 5:00 p.m.); the Paramount Park Community Center (14400 Paramount Blvd., 9:00 a.m. to 4:00 p.m.); and the Paramount Petroleum Community Learning Center at Spane Park (Monday through Thursday, 3:00 p.m. to 6:00 p.m.). For more information, please call (562) 220-2121.

November Brings Watering Day Change

Last month in this column it was noted that the City has changed its water conservation measures from Stage 2 to Stage 1 in relation to ongoing drought conditions in California. One of those guidelines sets the days during which lawns can be watered using sprinkler systems.

Starting November 1 and running through the end of March, you can water these areas on Thursday and Saturday only. Plus, there can be no water run-off from lawns and landscaping.

You can, however, water on any day if you use a hand-held hose with a water shut-off device or with a hand-held container, as long as there is no water run-off. You can water on any day if you use a very low-flow drip irrigation system.

For other conservation measures in Paramount, go to the City’s website at Paramountcity.com. For more information regarding drought issues, please call the City’s Public Works Department at (562) 220-2020.

Mayor, Daryl Hofmeyer

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There are plenty of facts, figures, and details about distracted driving, but the California Office of Traffic Safety wants you to know the plain and simple ones:

doing their shopping, keep these safetyrelated tips in mind when out and about.

• Never leave packages, bags, cell phones, purses, or other valuable items in plain sight in your vehicle. Place these items in your trunk, where they cannot be seen from outside your car.

• 80 percent of vehicle crashes involve some sort of driver inattention.

• Up to 6,000 people nationwide are killed in crashes where driver distractions are involved.

• Talking on a cell phone or texting is the number one source of driver distractions.

• Always be alert and aware of your surroundings. Stay off your cell phone and don’t text while walking.

• If possible, try to shop in pairs. Robbers often focus on, and target, solo shoppers.

• Shop during daylight hours whenever possible. If you must shop at night, go with a friend or family member.

• Texting takes your eyes off the road for an average of ﬁve seconds, long enough to travel the length of a football ﬁeld at 55 mph. Most crashes happen with less than three seconds reaction time.

• Always park in a well-lighted area.

• Avoid overloading yourself with packages. It is important to have clear visibility and freedom of motion to avoid mishaps.

• Carry small amounts of cash. Your front pocket is ideal for carrying cash.

• The act of talking on a cell phone, even hands free, can give you “inattention blindness,” where your brain isn’t seeing what’s right in front of you. You aren’t even aware that you are driving impaired. If you think you can handle both driving and talking on a cell phone or texting, you are kidding yourself and putting us all at risk.

• Be extra careful if you do carry a wallet or purse. They are the prime targets of criminals in crowded shopping areas, at bus stops, and on buses and other rapid transit.

• Never leave children in the car unattended.

• Never buy items from someone who approaches you in a parking lot. These are often stolen goods or, in the case of food products, not up to Health Code standards.

Distracted driving is anything that takes your eyes or mind off the road or your hands off the steering wheel – especially texting and cell phone use, whether hands-free or handheld. Who’s doing it? Most of us. It has been estimated that, at any one time, more than 10 percent of drivers are using a mobile device.

• Beware of strangers approaching you for any reason. At this time of year, “con-artists” may try various methods of distracting you with the intention of taking your money or belongings.

A ticket for $159 for texting or talking on a cell phone is a major distraction to your wallet.

What can you do? Most important, obey the law. It’s there for a reason. Also, do your best to eliminate distractions:

• Never text and drive.

• Turn off your phone when you get behind the wheel.

• Don’t text or call someone when you know they are likely to be driving.

• Make a pact with your family, spouse, and caregivers never to use the phone with kids in the car.

• No eating or drinking while driving.

• Don’t program your GPS, MP3 player, or other devices while driving.

• Pull over and stop to read maps.

• No grooming.

• No reading.

• No watching videos.

• Try not to get too involved with pas sengers.

• If something falls to the ﬂoor, pull over before trying to reach it.

• Notify the credit card issuer immediately if your credit card is lost, stolen, or misused.

• Keep a record of all of your credit card numbers in a safe place at home.

Project LEAD Sending Positive Message to Paramount Fifth Graders

City Takes Part in Disaster Preparedness Drill

Paramount has its own dedicated District Attorney – Kelly Tatman – who works out of the Sheriff’s Station. Her duties include making sure that criminal investigations and prosecutions in town receive full attention and don’t fall through the cracks at the larger County D.A.’s Ofﬁce.

Each year, the State of California organizes a widespread earthquake drill for County and City emergency preparedness staff to hone their skills. City of Paramount employees – who are considered emergency workers – participated in this year’s event on Thursday, October 20 at the Paramount Sheriff’s Station.

Tatman has been visiting a class of 36 students at Jefferson School as part of Project LEAD. The program, which goes into the classroom once a week for 20 weeks during the school year, uses volunteers like Tatman from the D.A.’s Ofﬁce to teach ﬁfth-graders about the law and help them recognize the social and legal consequences of criminal behavior.

Sadly, too many young people ﬁrst become acquainted with the justice system as delinquents. Project LEAD is designed to avoid that scenario.

The emergency disaster scenario had a 6.7 magnitude earthquake striking the Greater Los Angeles area with moderate damage reported in Paramount. Representatives from the City, the Sheriff’s Department, Paramount u nified School District, and the American Red Cross collectively engaged with one another to develop strategies and action plans to become better prepared during the event of a real-life disaster.

Vacation Home Checks

If you are a Paramount resident and have plans to be out of town during Thanksgiving or any part of the upcoming holidays, you can contact the Sheriff’s Station for a free vacation home check. Call (562) 220-2002.

The class from Jefferson recently went on a ﬁeld trip to the Museum of Tolerance. (They will also go to a local courthouse). In addition, Project LEAD’s curriculum includes speakers connected to the criminal justice system and a mock trial involving either drug selling or gun possession on campus. Students are assigned roles and argue a criminal case to a jury consisting of other students. Teachers and parents attend, too.

At the end of the program, the kids will participate in a graduation ceremony and receive a certiﬁcate of completion from the D.A.’s Ofﬁce at a meeting of the Paramount Public Safety Commission.

PUSD Superintendent Meets With Congresswoman Roybal-Allard

Summer Vacation Home Checks

With summertime approaching, remember that if you’re going out of town for an extended period of time, you can schedule

residents can contact the Sheriff’s Station about having Volunteers on Patrol keep an

Congresswoman Lucille Roybal-Allard (left) Paramount Unified School District Superintendent Dr. Ruth Pérez.

Congresswoman Lucille Roybal-Allard (CA-40) met today at her district office with Paramount Unified School District Superintendent Dr. Ruth Pérez, who became superintendent earlier this year. They spoke about ways in which they can partner to support Paramount Unified schools, students, teachers, staff, and parents.

Volunteers Add 150 Trees to City Parks

The quarterly Pitch-in-Paramount event that took place on Saturday, October 15, from 7:30 a.m. to 12:00 p.m. saw volunteers from Paramount High School and local churches assisting with the planting of 150 trees at Paramount, Progress, All American, and Dills parks. The trees were made available through a grant from the California Department

of Forestry and Fire Protection that was arranged by the City’s tree contractor, West Coast Arborist. A big round of applause to all who came out on a Saturday morning to “green up” the City! To become a volunteer at our next quarterly Pitch In, Paramount, please contact Adriana Lopez in the City’s Public Safety Department at (562) 220-2002.

The College Board – Great Resource for Students and Families

The College Board is a mission-driven, not-for-profit organization that connects students to college success and opportunity.

Founded in 1900, the College Board was created to expand access to higher education. Today, the membership association is made up of over 6,000 of the world’s leading educational institutions and is dedicated to promoting excellence and equity in education.

Each year, the College Board helps more than seven million students prepare for a successful transition to college through programs and services in college readiness and college success — including the SAT and the Advanced Placement Program. The organization also serves the education community through research and advocacy on behalf of students, educators and schools.

Its website www.collegeboard.org is a treasure trove of information and resources.

You can, for instance, look for college scholarships, other financial aid, and internships from more than 2,200 programs totaling nearly $6 billion on the College Board’s website. Scholarship information is based on the College Board’s Annual Survey of Financial Aid Programs.

It also has a portal to fill out the FAFSA, which every college student needs to do to

qualify for financial aid.

What is the FAFSA?

The Free Application for Federal Student Aid (FAFSA) is the ticket to federal money for college and many other types of scholarships.

The FAFSA is the form that families fill out to apply for federal grants, loans, and work-study funds for college students. It is administered by the u.S. Department of Education, which provides more than $150 billion in student aid each year.

Your eligibility for federal grants (which don’t have to be repaid) and federal loans (which do) will generally be based on your financial need, as determined by the information you supply on your FAFSA.

Most colleges, state scholarship agencies, and foundations use the FAFSA in deciding who gets their scholarship money, as well as how much each student will receive. Also, filing a FAFSA automatically qualifies you for low-cost federal student loans of at least $5,500 a year.

You can find out more about the FAFSA, including the deadlines for completing it, at www.studentaid.ed.gov/sa.

IHOP Signs Contract at Town Center East, Joins Growing List of Dining Options in Town

Over the past year, the City of Paramount has been on a roll when it comes to dining establishments, attracting six national chains and one small, hip, growing chain. A locally-based horchateria has become a regional sensation, and, with the City’s help, a well-known take-out and delivery-only pizza chain has expanded into a full-scale restaurant.

That list – The Habit, Chipotle, Waba Grill, Applebee’s, Yogurtland, Jamba Juice, Hiccups Café, Horchateria Rio Luna, and Pizza Hut – now welcomes fast-growing regional chain Ono Hawaiian Grill (moving into Downey and Alondra) and …

The iconic IHOP! The City’s first national chain sit-down morning spot will move into a former Asian buffet on Paramount Blvd., right in the heart of the refurbished downtown business district in Town Center East. It’ll soon be pancakes galore, and everything else on its breakfast/ lunch/dinner menu.

Horchateria Rio Luna, recently featured for its remarkable success on the KABC television show LA Today, will relocate into a much larger space to accommodate its

huge popularity on Paramount Blvd. just south of Alondra, joining IHOP as a major anchor in the downtown corridor.

The restaurant arena is extremely competitive, and to draw this kind of activity in such a short time span is a testament to Paramount as an attractive, thriving, stable community.

There has been one alteration, though, in this line-up of new businesses. Applebee’s has seen a recent downturn in overall business, especially in California where its sales have fallen 9%. The company has also experienced increases in construction costs and expressed concerns over the coming minimum wage hikes in California.

As a result of all this, Applebee’s has made a corporate decision to not open some previously announced new outlets in California and other states. In this region, that list includes locations in Lawndale, Perris, and the Paramount restaurant that had been set for Clearwater Crossing at Alondra and Paramount.

According to Fortune Magazine, casual dining chains like Applebee’s have faltered in the face of

competition from “fast casual” options like The Habit, Chipotle, and Waba Grill – all of which will open at Clearwater Crossing. The magazine noted, as well, that IHOP has outperformed Applebee’s for the last three years.

So Paramount is sitting pretty with dining establishments that customers have shown they prefer, and batting .909 overall, new-restaurant-wise. After a long drought of having no fast-casual or national sit-down restaurants, Paramount is triumphant, the same way the Chicago Cubs and the Cleveland Indians conquered the past by both getting to the World Series this year after decades of trying.

Yogurtland and Jamba Juice have been delighting local taste buds for months now. The new-look Pizza Hut is open for business. The Clearwater Crossing trio of The Habit, Chipotle, and Waba Grill – as well as Hiccups at Town Center West – should start serving at the beginning of December.

IHOP, Ono Hawaiian Grill, and the new Horchateria location are scheduled to open in the spring.

Part ID’s booth.

Kellie Johnson, President of ACE Clearwater and Jay Timmons, President and CEO of the National Association of Manufacturers.

3D measurements booth.

Manufacturing Day 2016 group photo.

ACE C l

Students lined up around the block for ACE Manufacturing Day 2016.

Students welding scores

Raw materials booth.

Math measurements booth.

Manufacturing Day 2016.

Paramount students at ACE Manufacturing Day.

Kellie Johnson, President of ACE Clearwater with some of the students who attended manufacturing day.

Students learn about metal forming.

n E tworking b r EA kf A st

Paramount High Leo’s Club Does it Again

By Karla Rodriguez

For many years Save Our Beach has been conducting monthly beach clean-ups which usually take place the 3rd Saturday of the month from 9:00 am to Noon in Seal Beach. Twenty Paramount High School students agreed to volunteer and take part in this amazing program.

Recently I, along with my fellow Leo Club members took part in Save Our Beach. We met at Paramount High School, where a bus took us to Seal Beach for the 9:00 am start time. Once we arrived at Seal Beach we realized we were not the only ones there to make a difference. More than 30 people were in line equipped with gloves, bags, and pickers to clean up trash. Cleaning up the beach was fun, and knowing we were making an impact on our environment was even better. The weather was chilly and the ocean sounds made everything calm and relaxing. The cleanup area reached from the pier, back to the First Street jetty, and we were done by noon.

After putting all the trash we collected into a huge green bin, we returned our equipment and headed to lunch.

Beginning the day by making a difference felt empowering, and we all need to keep in mind our actions matter; there are thousands of opportunities to volunteer and it’s important that we educate individuals, schools, and organizations about our footprint on the environment, and how it impacts our community and our planet.

It’s never too late to make a difference. You can join an organization like the Leo’s Club or any other club that provides opportunities to change the world. So get up, get involved, but most importantly, prove to the world that we Millennials are determined to make a difference.

Members of Paramount High School Leo’s Club.

Save Our Beach volunteers; Leo’s Club members Hector Contreras and Christian Poulias.

Fernando Kim (new owner of Herald’s Garage) spins the wheel for a chance to win. Fernando won a free email blast valued at $100.

Paramount Chamber Senior Vice President, Jon Tanklage (Marukan Vinegar USA) played spin to win and took home a Zamboni hat and tee shirt.

Paramount Chamber President, Gary Johnson (ACE Clearwater) presents Cristin McCauley (Catalina Express) with $25 cash donated by event sponsor AppleCare Medical Group for the business card drawing.

Paramount Chamber Ambassador Luis Baez (Funeraria Palacios, Inc.) named Ambassador of the Quarter. Luis received a certificate of congratulations from President Johnson, and a free quarter page ad in the Pulse Beat.

Laurie Moran (IT Support Doctor) won $25 cash for having the best table top display.

What Does CAM stand for in Commercial Real Estate?

Matt Wagner GM Properties (562) 696-0200

If you are in the market for Commercial/ Industrial real estate and you end up leasing some space in a multi-tenant business park, you will most likely see a monthly fee that is represented by the letters, CAM. This “CAM” stands for “Common Area Maintenance.” When you lease property in a multi-tenant business park, you do not lease the entire property. You lease a portion of the property with other tenants on the same property. In these instances, each tenant is responsible to maintain the interior of their respective units. So who maintains the exterior of the property if there are multiple tenants? This exterior area that is not included in any one specific lease is maintained by the landlord. Most landlords then pass through this expense to their tenants in what is called a CAM fee, or common area maintenance fee. This CAM fee is above and in addition to the Base Rent fee. This fee is usually charged on a monthly basis and is usually in addition with the monthly rent payment. So if the property has a total of 100,000 square feet and you occupy 10,000 square feet, you would be responsible for 10% of the costs to maintain the common areas of the property. Here is the AIR Commercial Real Estate Association’s definition of Common Areas: All areas and facilities outside the Premises and within the exterior boundary line of the Project and interior utility raceways and installations within the unit that are provided and designated by the Lessor from time to time for the general non-exclusive use of Lessor, Lessee and other tenants of the Project and their respective employees, suppliers, shippers, customers, contractors and invitees, including parking areas, loading and unloading areas, trash area, roadways, walkways, driveways and landscaped areas.

Let me break down how the fee is formulated so there is no confusion. Again, the utilities and services that maintain the prop-

erty, operating expenses, are what is included into a CAM fee. According to the AIR lease document, the following costs that relate to the ownership and operation of the property and are defined as the Common Area Maintenance Expenses are: 1) All costs relating to the operation, repair and maintenance, in neat, clean, good order and condition, but not the replacement of the following: Common Areas and Common Area improvements, including parking areas, loading and unloading areas, trash areas, roadways, parkways, walkways, driveways, landscaped areas, bumpers, irrigation systems, common area lighting facilities, fences and gates, elevators, roofs, exterior walls of the building, building systems and roof drainage systems. Exterior signs and any tenant directories, any fire sprinkler systems and all other areas and improvements that are within the exterior boundaries of the Project but outside of the Premises and/or any other space that is occupied by a tenant. 2) The cost of water, gas, electricity and telephone to service the Common Areas and any utilities not separately metered. 3) The cost of trash disposal, pest control services, property management, security services, owner’s association dues and fees, the cost to repaint the exterior of any structures and the cost of any environmental inspections. 4) Reserves set aside for maintenance and repair of Common Areas and Common Area equipment. 5) Any increases above the Base Year property taxes. 6) Any insurance cost increase. 7) Any deductible portion of an insured loss concerning the Building or Common Areas. 8) Auditors, accountants and attorney fees and costs related to the operation, maintenance, repair and replacement of the Project. 9) Any other cost related to the operation of the Project that is outlined in your lease.

As you can see, there are many costs and fees that can be included into a Business Park Common Area Maintenance, or CAM fee. If you have any further questions or are not clear on any of this information, I suggest discussing this with the agent or broker you are working with, good luck!

The following businesses renewed their membership in the Paramount Chamber of Commerce last month, they are celebrating another year as members. Chamber and Business Resource Center

are made possible by their

Three Surprises When You Apply for a Small Business Loan

Applying for small business financing can be time-consuming and frustrating. Research from the Federal Reserve Bank of New York shows the average small business owner spends more than half a standard work week (26 hours) researching and applying for financing.

unfortunately, putting in that time and effort doesn’t always pay off. The Nav American Dream Gap Report survey found that 45% of small business owners whose applications for financing were declined said they were turned down more than once. And research from the 2014 Joint Small Business Credit Survey found that in the first half of 2013, a quarter of firms with employees and nearly a third (31%) of those without

employees didn’t even bother to apply because they didn’t believe their applications would be approved.

While no one wants to be rejected when they apply for credit, small business owners are at a particular disadvantage because major consumer protection laws don’t always apply to entrepreneurs seeking financing for their ventures.

Here are three things that may come as a surprise when they apply:

1: You Don’t Get a Free Credit Report, Or Credit Score

Consumers who apply for credit and are turned down or charged more because of information in their credit report must be given a disclosure that tells them which credit reporting

agency supplied their report to the lender so they can order a free copy. When a credit score is used in the decision, the applicant will also be given their score—the actual one the lender used—along with the main factors affecting it. These disclosures give consumers the opportunity to check their credit report for errors, and to understand why they didn’t get the credit they wanted.

But there are no similar freebies for business owners when their business credit reports or scores are used to turn them down for financing. It’s no surprise then, that in Nav’s survey, nearly half (45%) said they didn’t know they had business credit reports, and the majority (72%) didn’t know how to get

information about theirs.

2: You May Ding Your Personal Credit Scores

With some types of small business financing, including business credit cards, lenders rely heavily on the owner’s personal credit scores, rather than business credit scores. That credit check will result in an inquiry on the owner’s personal credit reports, which in turn can hurt their scores. Most inquiries only shave a few points off one’s scores (usually in the range of 2 to 7 points), and typically only inquiries in the past 12 months are included in credit score calculations. But if a business owner is shopping for credit and applies with multiple lenders—or if a broker “shops” applications on the owner’s be-

half—multiple inquiries could result in a significant drop in the owner’s personal credit scores, and make it that much more difficult to get approved.

3 You May Not Know Why You Were Turned Down

In the Nav survey, 23% of business owners surveyed said they didn’t know why they were turned down for small business financing. When your application for a consumer loan is rejected, you’ll know. You’ll get the credit report and credit score disclosures mentioned above, plus additional information about your rights when you are denied credit.

With business credit, it can be less clear. Lenders have to provide you with the main reasons your application was rejected, but they are often allowed to provide them in writing or verbally. And in some cases, they don’t have to provide them directly. Instead they can provide instructions on the credit application that explain how to request that information. The applicant who doesn’t take note of those details, or follow up, may miss the opportunity to find out why they didn’t qualify.

Know Before You Apply

How can you make the process of shopping for commercial credit easier and less stressful?

Review your credit reports and scores before you apply to you know where you stand. Make sure you check your business credit scores as well as personal, as they may be reviewed by lenders for certain types of small business financing applications.

It also helps to understand the lender’s qualifications before you apply so you don’t waste time applying for loans you aren’t likely to get. For example, if your personal credit is bad, you want to look for financing options that don’t require good personal credit. (“11 Ways to Finance Your Business in 2016” is a free ebook from Navthat explains lending options and lender requirements for major types of loans as well as specific lenders.)

If you are turned down, make sure you find out why. Some lenders are willing to reconsider if a borrower presents a good reason for reevaluating their application. At a minimum you may get helpful information about ways you can improve your credit or finances before you apply again.

ted hiatt Associate Regional Director