Using SBA Loans to Grow Your Business

When you consider growing your business by taking out a major loan, how do you know what risks are worthwhile – and how do you evaluate risk in the first place? What factors are crucial in determining when to invest in real estate and what kind of property you should purchase? Why is it imperative to know your numbers well, and how do you ensure you’re not fooling yourself? These are among the most important questions for any growing business, and Yankie Markowitz, Chief Executive Officer of SBA Loan Group, has a fascinating way of addressing them all. Listen to Meny and Yankie discuss all this and more on this useful and crucial episode of Let’s Talk Business!

Transcript

[00:01 – 07:26] Opening Segment

Understanding SBA loans and how banks pivot to accommodate the market
How Yankie has helped facilitate over 600 million in real estate transactions
How SBA loans are outstanding for small businesses
Banks pivot to accommodate the market and protect themselves

[07:27 – 14:22] Small Business Growth

Exploring the benefits of SBA loans
Stimulating the economy by helping small businesses grow
The two primary loan programs that SBA provides
The requirements to qualify for an SBA loan

[14:23 – 21:20] Getting the Money You Need

SBA is flexible as long as the bank is willing to take the risk
Banks want to be on the same page with the borrower
How SBA Loan Group educates people on the program
Loans are available for those looking to expand or grow their business

[21:21 – 28:11] Making Money Faster

Advice for business owners on taking risks and buying buildings
The success of a business is based on the success of clients
What business owners should consider
The significance of understanding your numbers

[28:12 – 35:19] Know Your Numbers to Get the Best Loan Deals

Real estate typically appreciates over time
Owning property can be an investment for a business
Business owners should understand their numbers
The vocabulary of real estate investing

[35:20 – 41:48] A Guide for Business Owners

Your numbers are essential to running a successful business
Why you should speak to their accountant at least once a quarter
Be intentional with the goals of the business and set metrics to measure success
Outsource specific tasks, but don’t outsource responsibility

[41:49 – 48:36] The Power of People, Process, and Product

How SBA Loan Group is helping businesses pivot and succeed
Refinancing can be a great option when rates increase
Having the right team and process in place is critical to success
Attending events and being around like-minded people can be beneficial

[48:37 – 1:00:23] Closing Segment

Discovering the power of community
Yankie on the rapid four questions

Practical Pointers

One of the safest bets is that real estate appreciates over time - almost no matter what. It may take a while before it happens, but if your business can afford to do so, be your own landlord and own your own facility.

Every business owner hopes and expects to grow as quickly as possible. When investing in real estate - or, frankly, anything - keep this in mind so that you don’t find yourself with a ten year commitment to a building that you outgrow in half that time. If you can afford to do so, buy something bigger and rent out the extra space.

Make sure to speak to your accountant at least once a quarter, and prepare an interim financial statement for that period. Being ignorant of your actual numbers is one of the biggest mistakes you can make, so avoid the problem by regularly updating your statements and being aware of what those numbers really mean.

If you’re a business owner, you can outsource a lot but you can’t outsource the fundamental strategy of where the company is going to go, and what goals it has to reach. For this reason, you need to have a good knowledge of the numbers so that you can know where to take the business next - and be able to own that decision completely.

Guest Bio