by Austin Wheelock | ooc@oswegocounty.org
Financing is the cornerstone of small business growth. While accessing it can be a challenge, Operation Oswego County (OOC) provides the expertise and support to help your business succeed.
Through our various Oswego County revolving loan funds, OOC and the County of Oswego Industrial Development Agency (IDA) work alongside traditional lenders like banks and credit unions to provide low-cost gap financing to make small business lending feasible.
Gap financing means OOC typically does not finance the majority of a project. Instead, we partner with another lender in a subordinate position, sharing risk and leveraging additional funding to complete the deal. This approach could help make a project feasible that didn’t qualify for a large enough loan through a bank or could help reduce the cash equity needed by the borrower, which allows the deal to move forward.
Through our partnership with the IDA, Oswego County businesses have access to multiple revolving loan programs to assist with all business needs such as acquisition, construction, equipment and furnishings, inventory, as well as working capital to fuel business startups and expansion. While certain industry sectors such as manufacturing, tourism and agribusiness could be eligible for discounted rates, all business types are eligible to apply.
We can lend as little as $10,000 and as much as $250,000, depending on the type of project, strength of borrower and the project’s economic impacts. Projects using the funds for fixed assets and equipment purchases can typically receive a term as long as 10 years, while working capital projects have shorter terms, between three and five years based on the project’s needs.
A unique feature of our programs is a built-in six-month deferment, recognizing that startups and growing businesses often face early challenges where immediate loan payments could create setbacks.
Our financing programs require cash equity of at least 10% of project cost. They also require a business plan and like a bank or credit union, we will perform credit due diligence. Poor credit does not automatically disqualify applicants, but because we take a subordinate position, we may require additional collateral or cosigners to make the deal feasible. We also connect businesses to free planning support through the North Central Small Business Development Center and provide technical assistance through our in-house advisers. If you need to make connections to a local commercial lender, we can also help with that, with a strong network of local and regional banks that we do business with every day.
One of our more popular financing programs for new business startups is the MicroEnterprise Loan program. This program can lend up to $25,000 for a very small business with five employees or less. This program is flexible and can act as stand-alone financing without another lender or can work together to leverage a larger loan amount.
To qualify, you must complete a MicroEnterprise training program. There are several opportunities throughout the year to take this program and we can assist in getting you connected with a training provider. With relaxed credit standards compared to traditional lending, this program has helped dozens of Oswego County businesses launch that might not have otherwise qualified for financing.
Recently we have been able to use our small business financing programs to assist several businesses across Oswego County to expand, including:
• Whacko Gringo, a modern fast casual restaurant in the city of Oswego that expanded by acquiring and renovating a building on the city’s west side.
• Think Variant, a 3D additive metal printing manufacturer in the town of Schroeppel. We assisted them in acquiring specialized machinery to grow and meet the needs of their customers.
• Design Concepts, a medical device manufacturer in the town of Hastings. OOC assisted the company with financing for renovations to its facility, including a clean room and quality control enhancements to scale up for customer demand.
• Crofoot’s Car Care, an automotive body shop in the town of Granby. The IDA assisted with a MicroEnterprise loan for inventory and working capital to expand services.
• Old City Hall Brewery, a brewery and restaurant located in downtown Oswego. OOC and the IDA assisted this project with financing for the renovation of a historic building and the acquisition of specialized brewing equipment.
Business financing can be confusing and time consuming at a time when you need to focus on your customers and cash flow. Reach out to Operation Oswego County today to assist you in identifying the right lending program to meet your small business needs. Give us a call at 315-343-1545 or email us at ooc@oswegocounty.org to get started.
Austin M. Wheelock, certified economic developer (CEcD), is the executive director of Operation Oswego County, Inc. For more information, call 315-343-1545 or visit www.oswegocounty.org.
