Community Express, a program rolled out three years ago by the Small Business Administration, finally has found funding. So David Leonard, senior area manager for northern and central Nevada, is taking to the road to get the word out.
"I just did a series of rural loan clinics," he says of presentations at Chamber of Commerce luncheons in Minden and Fallon, Fernley and Lovelock, Ely, Elko, and Winnemucca. He also stumped for takers at the Tech Thursday event sponsored by the Center for Entrepreneurial Technology.
However the federal money comes with strings attached:
There's a cap of $250,00 per business.
The borrower must put 10 percent into the deal.
Only women, minorities, veterans or residents of a low- to-moderate income area need not apply.
The money must be deposited in a local bank.
The business can't be older than 24 months.
Borrower must meet with an appointed counseling group here, that's the Small Business Development Center situated at the University of Nevada, Reno.
The Community Express program was created because community banks often don't want to grant start-up loans unless real estate is involved as collateral.
"We've gotten the entire state designated an economic development area," says Leonard. However, he adds, the temporary designation is a pilot program; it was recently renewed for another year.
While the SBA is known to provide loans where commercial banks will not, Leonard notes that the Reno Redevelopment Agency should be the first stop for those wanting to start a Reno business, because it offers a low 4 percent rate on loans up to $50,000 (or $100,000 for tech companies).
Nevada small businesses were granted a record 1,000 SBA loans this year.
