Tag Archives: loan

Truck Puts Chef on Road to Prosperity

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F. Leroy Pacheco

F. Leroy Pacheco, CEO, The Loan Fund

Kimberley Calvo relishes creativity. The former executive chef at Intel and UNM introduced healthy cuisine to employees and students before starting The Seasonal Palate, a catering company. While looking for a restaurant location to expand her business, Calvo realized that her business model could be just as creative as her cooking.

“It was going to be a small fortune,” she said about the cost of renting and equipping the building she was considering in the small town ofPlacitas. She also wondered if there were enough residents to support a full-time restaurant. “So instead of trying to bring them to me,” she said, “I would bring me to them.”

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Be Ready When Banks Step Up Lending

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Paul Goblet

Paul F. Goblet, Financial Advisor, NM SBIC

Tight credit markets of the past few years have made it difficult for business owners to obtain loans to expand their business. Getting a loan is still as hard as ever, even though most financial institutions have plenty of capital to lend. With the interest rate charged banks by the Federal Reserve Bank at almost zero, it’s surprising so little capital is moving around.  Loans, as a percentage of deposits, are very low.

Credit will loosen eventually because banks can’t survive long-term without making loans. Stung by losses when loans defaulted, banks are understandably more conservative; but they need interest revenue from loans to grow.

Recent financial activity suggests money might be starting to flow again. Continue reading →

Loans for Legacy, Equity for Growth

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Tom Stephenson

Tom Stephenson, Managing General Partner, Verge Fund

Anyone looking for a business investor must examine their personal goals before looking for funding – different reasons for starting a business mean different ways of finding money.

Venture capitalists classify entrepreneurial businesses into two groups: growth businesses and lifestyle, or legacy, businesses. Only growth businesses will be attractive to venture-capital firms.

Lifestyle businesses are those started by people who want to have control over what they do and how they spend their time. These businesses tend to be focused on a local market, and entrepreneurs expect to own and run the business indefinitely. Continue reading →