After Eva Bowman’s husband suffered a series of strokes last year, leaving him permanently disabled, Eva decided it was time to start her own business to provide for her family. Despite her skills as a passionate sales person with strong insurance industry experience, she was unable to obtain traditional bank financing for her start-up insurance and financial planning agency.
When she started looking for other sources of capital, Eva connected to MoFi (formerly Montana & Idaho CDC) via the Small Business Administration’s LINC program. MoFi recognized Eva had the natural tools and skills to build a successful business, she merely lacked capital.
To set her on the path to success, MoFi provided Eva with help creating financial projections and finding the business’ break-even point. Then, MoFi provided $20,000 of collateral support to enable Eva to access a $60,000 MoFi SBA Community Advantage guaranteed loan.
Now, Eva’s fledgling business is poised for success. Eva will hire three employees, including at least one bilingual staff member, to better provide services to the local Hispanic community. She is setting up shop in Caldwell, Idaho, where one-third of the residents are Hispanic or Latino, and Eva’s business will provide bilingual access to insurance products for the whole community.
Additionally, Eva will continue to work with MoFi’s client success team, first receiving support setting up QuickBooks for the new business. MoFi’s business advisors will also help Eva track progress toward her financial goals, with a target of transitioning to bank financing in approximately two years. Most importantly, as a business owner with strong support, Eva will feel more secure in her ability to take care of her family.
Supporting burgeoning businesses like Eva’s is possible through MoFi’s recent Wells Fargo Diverse Community Capital (DCC) award, which enabled MoFi to create a collateral support program for Hispanic borrowers in Idaho and focus on the Hispanic community. As a result, MoFi has created a deeper community outreach strategy with lots of new referral sources. “DCC funding has helped us see how we can do more in the communities we serve,” said Betsy Beauvais, MoFi Director of Lending.
(Date of loan: 2016. Date of story publication: 2016)