By: John M. Hollingsworth; SBA Loan Director
Small businesses bring tremendous value, depth, and vibrancy to our communities. As our team has been working with local companies since 1909, we recognize the importance of partnering with small businesses to help them grow, as today’s small companies may become the large businesses of tomorrow.
We are committed to providing small business owners with dedicated support and resources to help our local companies thrive. Whether you are launching a startup or are a seasoned entrepreneur, there are several tips and resources you should be aware of as you look to expand.
Business Banking Resources
First Famers offers a full range of competitive loan products to meet business owners at every stage, including commercial mortgages, lines of credit, equipment lending, construction lending, and more. Additionally, companies can open checking and savings accounts and choose from various credit card options with low rates, cash back, and flexible rewards.
Entrepreneurs who bank with First Farmers can also enjoy convenient online and mobile banking through our Business Digital Banking platform, making it easy to pay bills, transfer funds, manage user permissions, and review account details from anywhere.
Small Business Administration Loans
Small Business Administration loans (SBA loans) are one of the most beneficial resources First Farmers offers for small business owners. The major benefits of SBA loans are that they offer longer payback terms than commercial loans, providing the loan recipient with more flexibility and working capital to conduct their operations as well as reduced equity injections to minimize down payment requirements. This loan type is a great option to help small companies expand their customer base and improve their cash flow. As a community bank, the First Farmers team has the time and resources to give each SBA loan application dedicated attention and work with you to determine if an SBA loan is right for you.
Advice for New Business Owners
In my initial conversations with new entrepreneurs, I always tell them that business is like a three-legged stool. One leg is your banker, the second leg is your accountant, and the third leg is your attorney. New entrepreneurs must recognize the value of having these key experts in place to keep operations healthy and on track. While new business owners sometimes do not want to immediately hire an attorney or CPA, having these experts on board early can translate to significant time and money savings in the long run.
I also encourage new entrepreneurs to conduct thorough research to determine if there is demand for the product or service, make sure there is retail space available, and ensure you can produce your product at competitive rates.
Advice for Seasoned Business Owners
The biggest challenges for today’s seasoned entrepreneurs are ongoing supply chain disruptions, inflation, and high product costs. As most economists agree that we will continue to see high inflation levels, I would advise business owners to secure larger lines of credit rather than relying on cash to have the working capital you need to continue your operations. This also allows you to secure larger volumes of products and lock in pricing to avoid disruptions in your ultimate product delivery.
For more tips about starting and building a business, I suggest visiting www.sba.gov. The website has substantial reference materials and tools for both start-up and existing businesses.
Whether you are a new or seasoned business owner, the First Farmers team would love to meet with you to learn more about your goals and connect you with the right resources to help you grow. If you are interested in learning more about our SBA loans, visit me at our Brentwood location or call me at (615) 986-4936, and I would be happy to walk you through the application process. References to resources or organizations listed in this communication do not constitute or imply endorsement or support by First Farmers & Merchants Bank. The information contained herein is for informational purposes only and is not legal advice or a substitute for legal counsel, nor does it constitute advertising or a solicitation. You should do your own research and/or contact your own legal or tax advisor for assistance with questions you may have on the information contained herein.
