Partnering for client success.

Here are a few ways the TSBDC works with your existing clients and potential clients to achieve success:

  • Assist potential borrowers in determining their financial viability and connecting them with their referring lender.
  • Coach and mentor the client for the life of the business.
  • Introduce additional funding assistance through development districts and CDFIs which can take up to 33% of the funding risk off the bank or credit union.
  • Client assistance in preparing financial reports and analyses may reduce the lender’s conflict of interest.
  • Educate clients on the types and structures of financial products—such as the differences between conventional, SBA, and alternative loans—before approaching a lender.
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IMPACT

  • 439 loans obtained by TSBDC clients in 2021
  • $100 million+ in loans obtained by TSBDC clients in 2021
  • $61 million in SBA-backed loans obtained by TSBDC clients in 2021
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Lending Case Studies

TSBDC provides assistance to an entrepreneur seeking 7(a) funding

The client came to us in 2017 with an idea to open a food processing plant. Using a model of a similar plant in another market, the client requested a feasibility study for opening a plant in his area. Additionally, the client sought a large small business loan to construct the facility, purchase equipment, and fund the plant’s first operations. 

Our consultant assisted the client with the following:

•Feasibility study

•Three years of financial projections

•Comprehensive business plan development

•Provided guidance to the client through the loan application process 

Results: The client was approved for a $211,000 7(a) loan with a commercial bank. He opened his business in 2020 and is currently looking into applying for additional capital for an expansion to a second facility.

Our staff provides ongoing consulting for the client.

Entrepreneur seeks assistance from TSBDC after denial of an SBA 504 loan

A potential client called our office requesting assistance obtaining capital to build an event venue, stating she was denied a 504 loan. According to the denial letter, her initial application for a 504 loan was denied due to insufficient documentation. Our consultant onboarded the client and began working with her on the funding issue. The client had already purchased the property for the venue and was seeking a loan to finance the build-out. As part of our consulting services, we assisted the client in completing a competitive analysis, market analysis, a feasibility study, and created revenue and expense projection documents. The TSBDC was able to help the client build a financial narrative and provided the package to the lender and CDC within 17 days of the client contacting the TSBDC. The SBA approved the 504 loan within three days of resubmission and the loan closed with the bank less than a month later. The loan amount granted for the small business was $1,437,250. 

Lender seeks TSBDC for wholesale finance clients

The TSBDC was approached by a lender stating he was seeking clients needing wholesale finance packages. The TSBDC consultant was actively working with a client who owned a boat dealership, helping the client explore wholesale finance options with local lenders. The business was a strong performer, but with inventory prices increasing, our client struggled to obtain a wholesale loan to keep her inventory alive. By connecting our consultant with the lender, the client received wholesale financing for $2 million, which renews annually. If the client had not been able to obtain the loan, her inventory would have decreased, therefore reducing her revenue stream.

TSBDC provides assistance with obtaining a commerical loan

In February 2022 a client approached the TSBDC requesting education on sources of capital. Her business was currently operating inside another company utilizing their equipment. An offer to purchase the building and equipment was made by the current owner to the TSBDC client.

The TSBDC educated the client on the lending process and the loans available. The client decided to approach a lender for a commercial loan. The TSBDC consultant assisted the client by developing a robust business plan including thorough financials through LivePlan. The client was then able to present the business plan to Tennessee Valley Credit Union and was approved for a commercial loan.

The loan was closed in July 2022 for real estate and equipment. The TSBDC consultant then assisted the client with setting up a new LLC for the real estate portion of the business.

Obtaining the loan to purchase the building and equipment has given the client the capacity to diversify her business and grow her client base which has created growth in her revenue.

Thank you again for your assistance. I doubt we would have been approved without your help.

- Client message to TSBDC consultant

SBA APPROVED the loan today, no additional questions or screenouts were requested. This was all based on your work and help with the client in the process. Can’t thank you enough for the time you took to help him get things done.

- Lender message to TSBDC consultant

I am thankful for the assistance of the TSBDC, my consultant was able to put the financial aspect of our business in a format that lenders were looking for, this is a knowledge I did not have, without his help I would not have known how to move forward with a loan package to launch my business.

- Client message to TSBDC consultant

You were a key reason that we could get SBA comfortable with this loan so I can’t thank you enough.

- Lender message to TSBDC consultant

Wonderful people provided phenomenal service. Everyone involved went above and beyond to assist me during the loan process.

- Client message to TSBDC consultant