SBDC Frequently Asked Questions (FAQ)
Q. How do I get a business loan?
A. The kind of financing most entrepreneurs seek through commercial
lenders is debt financing. Most banks provide debt financing for existing and start-up
businesses. Banks vary substantially in their lending practices. While one bank may
decline your loan application, another may be willing to take a higher risk or be
interested in lending to small businesses. It is advisable to understand a bank's lending
guidelines before applying for a loan. The general guidelines that would enable a lending
officer to at least make an informed decision regarding your loan proposal are as follows:
- Consideration of the Business Idea, usually explained in a Business
Plan
- Collateral
- Down Payment (or equity in an ongoing business)
- Credit history and personal financial net worth
- Management ability
- Ability to repay the debt
- Conditions of the economy and/or market area
Q. What are the basic skills you need to run a
business?
A. The basic survival skills include a working knowledge of
recordkeeping; financial management; personnel management; market analysis; breakeven
analysis; product or service knowledge; federal, state and local tax knowledge; legal
structures; and communication skills.
Q. What kind of registration and licenses are
generally required to start my business?
A. Obviously, there are specific requirements in each state, county
and locality, but it is possible to list the kinds of basic licenses and registrations a
new business will need:
Local----A business license from city, town or county, depending on
your location, will usually be necessary. In addition, you'll have to meet zoning laws,
building codes, and similar regulations.
State----In most states, if your business isn't a corporation and
your full name isn't in the name of the business, you'll have to register under what's
called a Fictitious Name Registration. You should also file for a Sales and Use tax
number. In some lines of business (like liquor stores, barber shops, real estate offices)
specific licenses are needed.*
Federal--You'll need an Employer's Identification Number (EIN)* and
a it's a good idea to request the "Going Into Business Tax Kit, from the IRS."
(*available at the SBDC)
Q. Can you help me if my business is set up as a
not-for-profit business?
A. Because of the SBDC's funding guidelines, the "center"
is not able to assist those businesses that are established as not-for-profit.
Q. Do you have to be in business to use the services
of the Small Business Development Center?
A. No. You only have to be considering the idea of opening a
business or researching the feasibility of a proposed profit making venture.
Q. What is it that you (SBDC) do?
A. The Small Business Development Center program provides low- or
no-cost guidance and training in proven management fundamentals helping small business
owners and potential owners make sound decisions for the successful operation of their
business. Part of a statewide network supported by the SBA and the Pennsylvania Department
of Community & Economic Development, the University of Scranton SBDC serves businesses
in a eight county area through individual, one-on-one, confidential counseling and group
training. The University of Scranton SBDC sponsors numerous workshops, conferences and
courses each year at various locations in its eight-county service area. Instructors
include SBDC staff, private-sector professionals, government experts and University
faculty. Programs are nominally priced to serve the small-business community.
Q. Do you need a lawyer to start a business?
A. No, but it's wise to get the best advice possible when you're
starting out. An attorney is one source of the expertise you'll need to draw on. In some
states you need an attorney to form a corporation. Check your state law.
Also, the SBDC maintains of listing of local attorneys, accountants, and
insurance agents who have expressed their interest in working with small
business owners.
Q. What form of business do you recommend for a new
business?
A. Each form, sole proprietorship, partnership, or corporation, has
its advantages and disadvantages. The one you should pick depends on your circumstances,
including:
- Your financial condition
- The line of business you're entering
- The number of employees
- The risk involved
- Your tax situation
Q. Are there any "Grants" available for my
start-up business?
A. Generally speaking, grants given to business start-ups are very
rare. An exception may be for a high technology type business or for businesses producing
products that can be used by certain agencies or departments involved in our nation's
defense.
Q. What are your hours of operation?
A. The University of Scranton Small Business Development Center's
normal hours of operation are from 8:30 a.m. to 4:30 p.m., Monday - Friday. Of course,
you're able to access our homepage and its resource applications 24 hours a day, seven
days a week.
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