Sky's the Limit
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20090209-NEWS--11-NAT-CCI-CL_-- 2/5/2009 2:36 PM Page 1 FEBRUARY 9-15, 2009 CRAIN’S CLEVELAND BUSINESS 11 INSIDE 12 BUSINESS FUNDING SOURCES ARE AVAILABLE. SMALL BUSINESS SKY’S THE SHORT TAKES LIMIT Established ventures illustrate ■ RUBBED THE RIGHT WAY: Massage Envy, a national franchise, is potential in forced entrepreneurship slated to open its newest clinic at The Promenade at Crocker Park this Tuesday, Feb. 10. The business By JOEL HAMMOND workers — or at least represent offers monthly memberships similar to [email protected] another option. those offered at health clubs.“Our goal is Mike Berlin was laid off “Elective entrepreneurship to allow everyone to experience the ther- in 2000 from a web ayoff got you down? Want probably won’t be as prevalent as it apeutic and stress-relieving benefits of consulting firm, and better control over your would be in good times because massage therapy as often as needed,” founded BriteSkies LLC future? optimism fuels that,” said Steve said Brian Quinn, who owns the clinic with a laptop and It’s not a pipe dream, Millard, president and executive with Kevin Flynn. Other Cleveland-area some severance pay. L Massage Envy locations are in Beach- according to some Northeast Ohio director of the Council of Smaller Mr. Berlin is founder entrepreneurs who started their own Enterprises. “But coerced entrepre- wood, Fairlawn, Rocky River and and managing member ventures following a layoff. neurship will increase for folks who Strongsville. of the Cleveland-based With hundreds of thousands of are out of a job and need something software integration job losses nationwide, these so- to sustain their family. You’re going firm. called forced entrepreneurs can to find people move to entrepre- RUGGERO FATICA serve as models for displaced neurship who are being downsized.” See VENTURE Page 14 ■ SPREADING GOODWILL: A new Goodwill retail store has opened at 10211 Northfield Road in the Ledge Road Plaza in Northfield Village. The 12,200-square-foot store features a job search station and community conference room. The store is open from 9 a.m. to 9 p.m. Monday through Saturday and from 10 a.m. to 6 p.m. Sunday. ■ COMING TOGETHER: Thomas Judge & Co. CPAs, Paul Pahoresky CPA and Lauric & Associates CPAs recently merged practices to form Judge, Lauric & Pahoresky CPAs. The result is a full-service public accounting firm providing accounting and tax services to individuals and companies. The seven-employee firm is located at 8952 Tyler Blvd., Mentor. ■ GOING WEST: Recruiting firm Amotec Inc. of Westlake has opened an office in Toledo. Amotec provides recruiting services in such industries as consumer, manufacturing, finance, aerospace, heavy equipment, automotive and food. Four employees were hired for the Toledo office, and there are plans to add additional staff in Toledo later this year. ■ AKRON OFFICE: Leimkuehler Inc., a Northeast Ohio provider of prosthetics and orthotics for more than 60 years, has opened an office in the Akron area, across from Summit Mall. Leimkuehler also has locations in Cleveland, North Royalton and Lyndhurst, as well as a mobile unit that travels to physician offices, hospitals, rehab facilities, nurs- ing homes and residences. 20090209-NEWS--12-NAT-CCI-CL_-- 2/5/2009 2:00 PM Page 1 12 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM FEBRUARY 9-15, 2009 SMALL BUSINESS Specialized lending programs available despite credit crunch targets specific industry sectors To qualify for Ag-Link, farms must have served in any U.S. military Institutions, state MARSHAPOWERS and provides financial support be for-profit with headquarters and branch, at any time in war or including $150 million for more than half of their operations in peace, the service-disabled, active sources support job advanced energy, $100 million for Ohio. Documentation is required to duty in transition or National Re- Ohio’s biomedical industry, $50 demonstrate need for the reduced serve and National Guard mem- creation, retention million for bioproducts, $250 interest rate, and the applicant may bers. million for the Higher Education request the reduction on up to ■ SBA Express loan: Maximum ven financially healthy Workforce Initiative, $400 million $100,000 of a loan. loan of $350,000, with a 50% companies are feeling the for public works, $120 million for At a federal level, the Small guarantee by the SBA with credit pinch in 2009, and it Historic Preservation Tax Credits Business Administration’s major a 36-hour turnaround. Use of will take several quarters to SMALL BUSINESS and $400 million for Clean Ohio. programs finally were funded and funding is the same as the SBA 7(a) Esee how President Barack Obama’s FINANCE The Ohio Treasury offers the are now more able to help small program. new economic stimulus package following programs to support busi- business. The Obama administra- will help small business. nesses that create and retain jobs: tion will more than likely look at Other sources of funding: In the meantime, here are existing business loans: Growth Capital ■ Ohio Enterprise Bond Fund: beefing up the SBA to help get ■ Venture capital funding: funding sources to consider: Corp., a community development The OEBF is available to eligible funding to small business. A bank V/C funding, in general, is ■ Credit unions: Credit unions corporation that provides the Small borrowers for the purpose of is required with SBA credit, so currently very tight. Fund groups are now filling an important credit Business Administration 504 and purchasing land, buildings and work with a bank that has a are reviewing their portfolio void —providing loans and lines Ohio Regional 166 loan programs, equipment that will create and specialist in SBA funding. companies, grading them A, B under $50,000 — as many banks recently has partnered with the retain jobs and further promote ■ SBA 7(a) loan guaranty: or C. Generally, if a company is concentrate on larger, less risky Community Reinvestment Fund, economic development. Eligible This program can be used for most graded an A or B, the fund will loans. Because credit unions are USA. This will allow Growth Capital borrowers include corporations, business purposes, including provide the company with follow- privately owned and do not have to offer more flexible funding to partnerships, sole proprietorships, startup, expansion, equipment up money. If the company is the high overhead of a bank, they borrowers. The CRF brings together limited liability companies or limited purchases, working capital, inven- graded a C, the company will be sometimes can offer loans with community development lenders liability partnerships engaged in tory or business-occupied real required to look elsewhere for new lower interest rates. In most cases, and socially motivated and market- the creation or retention of jobs in estate purchases. The program capital. you do not need to be a member of rate investors to increase the industrial, manufacturing, lowers fees to borrowers and their With only a handful of IPOs last the credit union to apply. amount of capital invested into commerce, research and develop- participating banks, with a maxi- year, and predictions are the same ■ Banks: Yes, banks are lending local communities. ment or distribution ventures. mum loan of $2 million, of which this year, the V/Cs are being but are using much stricter credit- The Ohio Department of Develop- ■ GrowNow: This program the SBA will guarantee up to $1.5 required to continue to support writing criteria, including more ment also offers programs covering a offers interest rate reduction on million to the bank. their portfolio companies instead cash infusion, higher loan-to-value full range of programs to support loans to small businesses that ■ SBA Patriot Express loan: of selling them off to earn their exit ratios, higher credit scores, business, including grants and create or retain jobs. The treasury This program offers financial strategy profits. ■ increased scrutiny of the company’s funding ranging from $2,500 for invests state funds with participating packages of up to $500,000 and business growth plans, stricter training to multimillion-dollar banks at below-market rates and with enhanced guarantee and Ms. Powers is CEO of Powers terms and covenants to ensure any infrastructure programs: the bank passes the interest rate interest rates. This is an excellent Financial Group Inc., which risk is mitigated out of the deal. ■ Ohio Bipartisan Job Stimulus savings (up to 3%) along to the finance program to consider if specializes in helping companies Don’t be surprised if you are asked Plan: This newer program still is small business. capital is needed to start or sustain secure financing for business loans, to move all your checking accounts being crafted and is sometimes ■ Agricultural Linked Deposit a business during and after you commercial real estate, mergers to their bank. difficult to navigate through the Program: Ag-Link offers interest have served our country. This ex- and acquisitions. marsha@powers- ■ Community reinvestment review process. The program rate reductions on loans to farmers. panded program is open to all who financial-group.com GRANDOPENINGS GO! BISTRO CORPORATE SECURITY & 1261 SOM Center Road INVESTIGATIONS (CSI) Mayfield Heights 44124 600 Superior Ave. East, Suite 1300 www.go-bistro.com Cleveland 44114 Go! Bistro is a casual restaurant www.csiinvestigators.com offering a variety of sandwiches, Headed by former Lakewood police of- salads, burgers, ribs, pastas, beer ficer Jeff Jerdonek, Corporate and wine. It is open 11 a.m. to 9 p.m. Security & Investigations in Cleveland Monday through Friday; 11:30 a.m. to works with law firms and corporations 9 p.m. Saturday; and it is closed on to provide a wide range of security Sunday. The restaurant’s owners are and investigation services. It is a new Larry and Cindy Moore.