Posts Tagged ‘small business’

Contributed by Ron Johnson, President and CEO, Central Bancorp

Downtown-Colorado-SpringsDiscussions and opinions about the direction of our downtown have been lively lately along with an ongoing debate on where the focus should be placed for it to thrive and be contemporary in this century and beyond. Do we need a downtown stadium or a family-friendly entertainment and shopping district? Should we build more museums or develop the amateur sports scene? Is there a need for growth in residential and grocery options?

The answer to these questions—and the success of any future downtown projects—depends on the strength of three pillars of our community: The safety and cleanliness of our neighborhoods, the quality of our educational system, and the success of our small businesses. With safe streets, a growing and qualified workforce, and employers to supply jobs, we will have the population and visitor base to support a vibrant downtown and the city as a whole. Without a doubt, we live in a beautiful community with great potential for growth into an energetic, safe, well-educated, and diverse city with great housing, dining, and entertainment options throughout.

As a business rooted downtown, we certainly appreciate the ongoing efforts of the many local businesses and individuals who endeavor to support improvement in our community. Any step we take toward a more prosperous city with a strong core will depend on us coming together as a community and achieving success together.



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Contributed by Gary Markle, President, Central Bank & Trust

The U.S. Small Business Administration recently revamped their CAPLines program after engaging financial industry leaders in all 50 states to implement changes benefiting SBA lending partners—such as Central Bank & Trust—and small business owners.

According to the SBA revised guidelines, the new CapLines program gives small businesses more flexibility to finance the contracts, subcontracts, and purchase orders they compete for and win. “By addressing the short-term and cyclical working capital needs of small businesses, the revolving line of credit will help them manage their cash cycle, scale up, and create jobs,” the SBA explains.

From our perspective as an SBA lender, these revisions make this once-underutilized lending program more attractive and allow us to fund a borrower’s short-term working capital needs under the SBA guidelines. For businesses that are growing and have been awarded new contracts, banks now have the capacity to do revolving lines of credit up to $5 million utilizing their own credit parameters. This means business owners can work directly with a dedicated SBA lender and process their line of credit expeditiously.

Key benefits of the CAPLines program (which can be found at SBA.gov):

– Small businesses can pledge accounts receivable, inventory, contracts, and purchase orders to secure an SBA revolving line of credit.

–  The SBA will no longer require small business owners without buildings or equipment to use their personal assets as collateral to secure working capital.

–  Small business subcontractors can now obtain an SBA-guaranteed line of credit to finance their work on a contract with a federal prime contractor.

To understand the benefits and details of the CAPLines program, small business owners should work with a lender who knows the SBA policies, procedures, and systems to deliver and service this type of revolving credit. The small business owner should also know who they’re talking to, who’s processing the loan, and who’s making the decisions that potentially affect their future growth.

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