Business owners will learn about financing options during a workshop hosted by the University of Houston-Victoria Small Business Development Center.

Joe Humphreys

Commercial Real Estate Loans Made Simple will be from 1:30 to 3 p.m. Aug. 20 in Room 108 of the UHV University Center, 3007 N. Ben Wilson St. Annie Hudspeth, a lender relations specialist from the Small Business Administration in San Antonio, will teach the free workshop.

“This workshop will offer attendees an opportunity to talk with someone from the SBA who works with lenders and clients from the Victoria area,” UHV SBDC Director Joe Humphreys said. “It’s good to get that face-to-face interaction and perspective.”

The workshop will focus on two types of loan guarantee programs offered by the SBA. The CDC/504 Loan Program is intended for use in brick-and-mortar financing, such as purchasing land, renovating or expanding a building, or purchasing equipment with economic life of 10 years or more. The 7(a) Loan Guaranty Program can be used for a wider range of needs, such as working capital, purchase equipment, inventory, debt refinancing or other financing needs.

Annie Hudspeth

During the workshop, Hudspeth will explain the difference of the two loan programs and the process for applying. Business owners who apply for these loans must have good credit, a viable business and meet all the requirements for typical loan underwriting.

After reviewing a loan application for a conventional loan, a lender can choose to request an SBA guarantee. The SBA provides a guarantee of up to 85 percent of the 7(a) loan amount to take away some of the risk for lenders. This is especially helpful for high-risk businesses such as hotels, restaurants and start-ups, Hudspeth said.

“An SBA guaranteed loan provides an alternative for applicants not able to obtain financing through normal lending channels on reasonable terms,” Hudspeth said. “We help people start, build or expand their businesses.”

Hudspeth also will introduce attendees to the SBA LINC tool, an online resource that helps entrepreneurs search for lenders. The tool is located on the SBA website at www.sba.gov/tools/linc.

Farhang Niroomand

The workshop will be a good starting point for those wanting to start a business, and it also will provide information for owners of existing businesses who need help getting a loan, Humphreys said. Those who want to apply for the loans can get assistance from the SBDC. Business advisors can help put a loan proposal together and will assist applicants in preparing to meet with their lenders.

“Loans and financing can be very confusing, and that is where the UHV SBDC can help,” said Farhang Niroomand, dean of the UHV School of Business Administration. “This workshop is yet another service that the center offers to help area entrepreneurs succeed.”

To register for the workshop, contact the UHV SBDC at 361-485-4485, 877-895-7232 or sbdc@uhv.edu.

The UHV SBDC is part of a nationwide small business assistance program that serves the small business community in partnership with federal, state and local governments. The center offers business advising, training and technical assistance to existing and start-up businesses in an 11-county area.