Where Small Businesses Can Get Credit

" We'll see nineties filing for bankruptcy -- many small businesses in the lurch where else can you turn to credit joining us now. Is James Kirby is president of small business -- deer path capital management. They operate in really what they called mid to lower market offering loans of what three million to about fifteen million bucks -- guests -- welcomed the program by the way good -- you know listen when the CIT's crossed and it's been rolling out for awhile. The idea is outside the SBA Small Business Administration if somebody out there once a startup of a business and the need to couple million bucks in loan. They're probably not going to get it from CIT now on it."

" I think the problems of CI TR just one example of problems facing many financial institutions he had a large number. Of non bank lenders that were essentially -- their own financing through the capital markets. Those. Finance companies today are having trouble getting their own financing and when they can't get their financing it's difficult for them to provide loans to small businesses. One of the markets that I think is still open and thriving Small Business Administration programs and as at components of that. The small business investment companies I think are very good angle for small companies to target to what -- talk more about happens people note the Detroit kind of traditional. Two types of SBA lines but talk about that the investment companies which is what you did yes our our firm your -- capital is an example the small business investment company. The FB IC program has been around since 1958 so this is a longstanding program that was set up specifically to encourage investment firms to provide capital to small businesses. There are something like 350 SP -- C funds active today. And collectively they represent about twenty billion dollar capital so while we're not as large Citibank for example there's like capital there that can help a lot of small companies so. These are firms that make debt and equity investments in small businesses. And benefit from government support for that we can get our financing on a long term basis on attractive terms with the help of the SBA. And that enables us to make five to fifteen million dollar loans to small companies and attractive terms though. As your business picked up recently are you are you seeing more interest in what kinds of terms. Do you make on a typical loan these days given the risk that's out there in the economy charm there's no question there's a lot of demand out there today for loan financing we we got our license from the SBA in July so we're fairly new player. And now we've got our. They basically for a pool of capital were looking to deploy today. Are typical investment would be -- first lien secured loan. That could be used to help of business expand internally or make an acquisition or refinance debt if they have debt that's maturing. And it looks a lot like a bank loan if you look at the pricing in terms of that James therein lies when the issues that is for existing businesses that have a track record that's not for startup. It's true and we are not focused on charter companies were looking for businesses that have been around long enough to have a customer base to have profitability to have. The capability to pay interest -- principal on alone. In there are variety of different firms within the FB IC program some of which I think are more equity oriented and we are good but our firm is really focused on providing loans to small companies and we think there's a huge need for loans to small companies today. What are people that may be as today against point to follow on that people who want to start a business from scratch these days they have an idea they've got a business plan the numbers seem to make sense. Where can they turn now and what advice would you happen about that. Well I think a lot of the historical Anthony's are still open they they turn to Angel investors they turn to venture capital investment firms friends and family friends and family is challenging no question but within the Small Business Administration there're a number of different programs when I've described the small business investment company program is just one of many programs the SBA administers and down I think yesterday's great resource to turn to not only do they help facilitate. Capital availability. They have people in regional offices taking give advice and guidance entrepreneur worst trying to get started side I think that's a great resource to Small Business Administration quickly James in what areas in particular are you seeing demand -- We are seeing a lot in health care we're seeing opportunity and energy we're seeing opportunities in the communications sectors those are three areas we specifically target. But really across the board general manufacturing companies services companies. Companies of all different types of industries need help with financing -- nice to hear about -- is lending James Kirby deer path capital management James thank you very much and good Demetric."