BCDC Loan Programs

Economic Development Administration EDA-RLF

SBA - ILP Funds

Barberton Growth Fund

Program Related Investment Account

Lending Criteria

The Barberton Community Development Corporation (BCDC) provides business planning and financial assistance for businesses of all kinds and sizes. One of the ways the BCDC can provide a business with financial assistance is through revolving loan funds (RLF).

The BCDC has several RLF programs available to businesses within the City of Barberton. Although each of the funds has slightly different lending criteria, the funds operate under the same general concept. The requirements for accessing the funds are very similar to obtaining a bank loan. The applicant must submit the following:

  1. Complete application and personal financial statement.

  2. Remit a loan processing fee.

  3. Provide an up-to-date business plan.

  4. Financial projections for at least 2 years.

  5. Possess sufficient collateral and credit score.

  6. Business must generate a positive cash flow.

  7. Minimum two years of experience in the industry.

  8. Bank participation may be required.

  9. A job creation component may be required.

Each application received that meet or exceed the above criteria will be submitted to the Project Review Committee of the BCDC along with a staff recommendation. If approved by the committee, final approval will be determined by the Board of Directors.

Loans are subject to the availability of funds.

Top Mistakes When Starting Your Business

  1. Customers, without them there is no business. Too many businesses start without a market or a good sense of understanding who that market is. Fuithermore, a new business owner has to be willing to go out and find business and sell their product/service every day.

  2. Prepare a well thought out, detailed business plan and seek out advice.

  3. Lack of financial support. Grants are seldom, if ever available to start a business and financing will require cash equity. It is never a good idea to finance a new business on credit cards.

  4. Although your new business will take up a lot of your time, don't forget to plan days off. Plan time with your family and even find ways to include them in running the business.

  5. Overestimating family/friendship support. Family and friends will always tell you your ideas are great and if you are starting a business with a friend or family member, always treat it as you would a business relationship.

  6. Not planning your cash flow. Cash flow will make or break a business, always plan for payments and know your balances. Be sure to price your product/service appropriately.

  7. Hiring employees. Put this off as long as possible to save on costs. When you do, make sure you keep up with worker's compensation and payroll taxes.

  8. Not paying taxes. Know that you are responsible for collecting and then paying sales taxes and other business taxes or you will be assessed large fees or even prosecution.

  9. Lack of product/service knowledge and understanding. Be the expert in your business.

  10. Not asking for help. Ask the experts and develop your team of resources for the management and growth of your business.

  11. Letting your passion cloud your judgment on whether you have a viable idea or a sustainable market.

  12. Starting a business without considering all of the above points and not knowing when to get out or transfer the business over to new management.

  13. Know the costs associated with starting the business and don't go too big. Many companies believe the need twice the startup funds that they actually do.