Q: I’m starting a childcare center. I own the building but I need funding. The only reason I wanted to do non-profit was because I didn’t have the funding. My credit score is 609 so the banks won’t lend me five dollars for a hot dog. I’m currently in school for early childhood care education to be a director. My question to you Ed, is where do I go from here? While I’m in school I want my building to be remodeled so by the time I get out of school my building would be ready for business. — Cush
A: You have a lot going on here, but have provided too little information for me to provide you with advice that would be as in depth as I would like. Nonetheless, here we go. This would be one of the possible plans of action that you may take:
1.) A little bit of preparation goes a long way. Improve your credit scores. There is more bad than good help out there to improve credit scores.I know, because I have spent tens of thousands of dollars trying to find a person or company that actually delivers on improvement of personal scores. About three years ago I found a very credible source that I regularly recommend…Terry Greene 303-319-1159. His services are about $299 and I am certain that you will be happy with the results. You don’t need to improve very much to see credit doors, literally open for you. Tell him I sent you so that he puts you in the right program. Your entire life will get easier and cheaper once your scores are improved.
2.) There is a resource that is a non-profit organization that funds start-ups using the Small Business Administration (SBA) loan guarantee program. Because of those two elements, non-profit focus and SBA loan guarantee, they are not all that credit score sensitive. In fact, their minimum FICO score requirement is only 575. Seriously. But, for start-ups, they do require a co-signer who also has to have at least a 575. The loan amount is up to $35,000. If that is all that you need then this may be your resource. You can apply online at www.Accionus.org
3.) Should you need more than the $35K for building improvements then I would suggest an SBA 7(a) loan. But, only after you have improved your personal credit scores. The equity you have in the building should satisfy any loan down payment requirements. So you, in all likelihood would wind up with 100% funding. If you choose this option call me and I’ll discuss your options…813-977-7071
4.) You may also consider while keeping your non-profit for some specific purpose like obtaining grants and contributions from individuals and companies for, lets say… subsidizing tuition for special needs kids, or low income families or some advanced learning programs etc…You may also choose to incorporate as a C-Corporation (for profit corp.) to utilize as your structure for your day to day operations.
The resources provided here are very reputable and appear to be appropriate for your situation. But, please understand that this advice is given based on only three lines of information that you have provided. We highly advise that you complete your own due diligence regarding our recommendations contained herein and we assume no responsibility for your future actions.
Thanks for the questions. Best of luck. And, don’t hesitate to contact me should you need additional assistance. — Ed
A: Due diligence is the key. Before doing business with any company either net based or brick and mortar, one would be well advised to check them out.
Here are some of the best places to check information:
1.) The company’s website:
- Scroll to the bottom of the landing page and check the copyright date.
The age of the website should tell you something about the age and experience level of the company. The fact that a copyright on that site was registered very recently does not necessarily mean that the company is brand spanking new, but it might be. So, that is one thing to consider. It also might be that the site content has simply been recently renovated or updated. You can cross reference this against the age of the company, which you can Read more