SOURCE: Global Private Funding, Inc.,
VENTURA, CA–(Marketwire -05/11/12)- The Small Business Development Centers (SBDC) are launching a new capital access program to assist business owners in preparing for funding and investment. GPF Real Estate & Financing Corporation (Global REFCo), a subsidiary of Global Private Funding, Inc., (Global) will provide the financial packaging services for SBDC clients through workshops and one-on-one step-by-step guidance. The goal is to prepare business owners to present their businesses in the most positive light and capture the attention of venture capital (VC), private investors, underwriters and revenue financiers.
Bruce Stenslie, President and CEO of the Economic Development Collaborative serving Ventura and Santa Barbara County (EDC-VC), shared that creative financing and access to capital will turn the economy around creating greater consumer confidence and local jobs. Lawrence Hermelee at SBDC, a retired banker who masterminded this program, added that most often, businesses, even those growing exponentially reach glass ceilings and walls that though one can see through to the other side, remain a hard barrier holding the businesses from growth. Larry further added that Global’s Business Incubation process helps businesses break the invisible barriers and grow. In an interview, Andrew Halarewicz, Vice President of Business Development of Global, at the Century City branch, explained how the Global Business Incubation program is performance based and therefore does not burden the businesses with advance fees. The clients and Global are aligned through performance-based compensation.
Mary Kananen, the Community Outreach Manager at Global, spoke of the Global Center for Excellence Award, an award to challenge and inspire Innovation & Creation of Disruptive Technologies. Mary described disruptive as similar to the invention of the light-bulb vs. the candle. The nominations for this award are through research institutions and grant award committees at various private and government agencies. SBDCs of EDC-VC have been selected to submit up to five (5) candidates per year for California. Mary explained that the award is not based on a bell-curve, rather on merit and that there are years when nominees do not meet award standards; it’s a challenge, not just recognition. The recipient of the award is given up to $100,000.00 to further develop the technology, up to $250,000.00 in consulting, marketing and product placement development through Global, and a one year management internship.
Joshua Loeb, Associate Vice President, Lending & Venture Investment at Global expressed his excitement about the new Global-SBDC micro-loan startup fund. We have experience launching similar funds. He expressed that most often, funding a half a million dollars ($500,000.00) to an established business is far less complicated than the few thousand needed to start a business. According to the Wells Fargo/Gallup Small Business Index study of 2006, small-business owners spend an average of ten thousand dollars ($10,000.00) to start their business. “The Global-SBDC micro-fund is vital to unshackling startups,” said Joshua.
Jessica Beavers, Vice President of Health and Human Services Group at Global, spoke about the changes to Medicare and the migration of medical service from fee-for-service to results-based through Accountable Care Organizations (ACOs). The SBDC will expand its services to physicians by bringing ACO and IPA origination services to physicians. Jessica spoke of the benefits of physicians collaborating to start their own ACO or an IPA opposed to joining one. She also spoke about how hospitals, in creating their own ACO, retain good physicians. Medicare reform is here and the ACO model is one that can be implemented to benefit private patient practices and HMOs to reduce costs.
Ray Bowman, Director of the SBDC who was recently assigned to the prestigious National District Export Council by Secretary of Commerce, John Bryson, plans to take this model across California and to other states enabling SBDCs across the nation to provide greater value to their clients. It’s not just about funding and financing, it’s also about showing business owners how to become better operators and create an exit strategy so that there are milestones and a pot of gold at the end of the rainbow.
The SBDC network is part of the national Small Business Administration (SBA) providing individualized consulting and training to new and growing businesses. Global is an equity based lender who specializes in incubating businesses and financing. Unlike venture capital firms, Global does not take equity. Often, venture capital firms retain Global’s incubation services to secure success of their acquisitions. Global finances collaboratively with its partners as well as by connecting investors directly to the investment. Global does not charge the investors any fees, thus, maintaining its impartiality.
Dr. Sam Francis Senev, Chairman of Global, reiterated the importance of SBDCs: “That the local businesses are who support the local economy and if we as a community want to champion change, we can think globally, but we must act locally.”Contact: Ray Bowman SBDC Director Small Business Development Center Economic Development Collaborative – Ventura County (805) 384-1800 ext: 26 www.edcsbdc.org Mary Kananen Community Outreach Manager Global Private Funding Inc. GPF Real Estate & Financing Corp. (800) 226-8146 | (805) 807-2943 www.GlobalPrivateFunding.com