Small businesses benefit from loans and support ---
Successful business owners share a common strength and experience - regardless of their education, race or gender, they continued to move forward even in moments of fear or uncertainty. Committing to large business loans, buying property and expanding a business will give most people a feeling of fear or uncertainty, but Bay Area business owners make such moves every day, even in an uncertain economy.
Ernesto Oñate launched his business, Sound Innovations, in 1989. He and his team in Hayward provide high-end, custom auto audio system installation and fabrication. Their custom fabrication work in metal, wood, fiberglass, and carbon fiber grace many local cars, including about twenty customer vehicles that have been featured in national car audio magazines.
Earlier this year, Oñate applied for and received a business loan through the Small Business Administration, which is an agency of the U.S. government. The loan was used to buy a building for his business, which he will be moving from Hayward to Union City. His new mortgage payment will be lower than the rent he was paying.
“I did not know about SBA and how they can help me until I was talking to a commercial realtor,” says Oñate. “I had general questions about commercial loans and the realtor introduced me with Capital Access Group.
“The fear of not knowing and assuming stops many people from doing it (applying for the loan). Also, at SBA they look at the big picture, they see a human element - if you have been paying your rent for so many years on time and your business is doing good they help you out – in the traditional bank they just put the numbers in the calculator and if you do not have what it requires they do not give you a loan.
You have to be established and be sure that you can make your payments before you apply or buy a building,” he adds.
“I am investing in my own future - it was a smart decision.”
“The SBA has been very instrumental in our company growing,” says Dolores Sanchez, the matriarch of a third-generation, family-owned business, B&S Hacienda. The automotive body repair business employs sixty people at its four Bay Area shops, one that was bought with a $903,000 loan through SBA.
“We helped back more than a billion dollars in business loans to Hispanic-owned businesses nationally,” said Elizabeth Echols, regional administrator for SBA in the Bay Area.
“In Hispanic and other ethnic communities, we have seen the need for smaller loans,” says Echols. “The Community Advantage loan program allows non-profits to help people get the loans – up to $250k. We also have a small loan advantage program through the banks, which is a streamlined approach for loans up to $350k. And a micro loan program for up to $50,000.”
Beyond loans, the SBA also connects small business owners with non-profit organizations and community leaders through community action summits, two of which were held recently in San Jose and Livermore. The agency organizes training and networking programs in the Bay Area almost every week, and partners with Hispanic chambers of commerce to help businesses grow and create more jobs.
“In 2011, we were able to help Hispanic-owned businesses get access to $8.1 billion in contracts around the country - $851 million for Hispanic-owned businesses in California.
Everardo Rodriguez started his business, Bay Restorators, in 1987. The business provides professional fire, smoke and water damage repair to home and business owners. Rodriguez’s loan through SBA was also used to buy the building that houses his business in Oakland.
“We had a CPA that helped us get everything organized and the SBA was quite helpful for us in understanding the process and getting the information we needed,” says Rodriguez.
“Getting our building made a tremendous difference - we used to rent all the time so getting our own building made me feel more established in the industry and to have a place where we don’t have to worry about lease renewals and rents going up all the time. It gives us the fortitude and focus on growing and moving forward.
“People in our community always think that it’s real hard or impossible to get government loans but as long as you do your due diligence and get your paperwork you can do it,” says Rodriguez.
“Don’t let the paperwork stop you,” encourages Rodriguez, who explains that the paperwork is what often, “scares a lot of people in the Hispanic community. More people need to take advantage of what´s out there.”