Business Expansion and Acquisitions

It's an exciting time for you as a prospective business owner. Jefferson Bank can provide the financing, however, there are other things you'll need to consider. We've provided some resources to help you gather the information you need.

State Government Sources of Information
The State of Missouri website, http://www.ded.state.mo.us/businesscenter/, has an incredible amount of material available. You'll find information about:

You may want to review the information by the Missouri Secretary of State's site: http://www.sos.mo.us.

Jefferson Bank can help with the Purchase Price of an Existing Business
Whenever you are purchasing a business, the agreed upon purchase price is critical for financial success. There are many business valuation methods available, and Jefferson Bank can share the most frequently used modules with you. The module used most often is the cash flow method. Adequate cash flow is what pays the owners salary and dividends. Another decision you'll need to make is whether this will be an asset or stock purchase. Our staff of professional business lenders is always available to help you navigate through this process, so please call us at (573) 634-0847.

SBA Programs
If a loan request doesn't qualify for a conventional loan, then we will see if a SBA loan will work. There are several government-sponsored programs offered by our bank to assist beginning or expanding small businesses. The Small Business Administration (SBA) has several programs that may fit your needs.

The SBA began in 1953 and is designed to promote small-business formation/startup by guaranteeing long-term fixed rate loans to those who qualify. About half of the startup businesses use an SBA loan program.

Jefferson Bank is a Preferred SBA lender, which means a quicker turn around time for you and a better chance of getting your loan approved and funded. To find out about interest rates and terms for SBA loan, please contact Mike Hoelscher at (573) 634-0847.

• SBA-504 Loan Program. This program is designed to minimize a customer's cash outlay and gives them access to long-term fixed-rates. Proceeds from 504 loans must be used for fixed asset projects such as purchasing land and improvements, including existing buildings, grading, street improvements, utilities, parking lots and landscaping; construction of new facilities, or modernizing, renovating or converting existing facilities; or purchasing long-term machinery and equipment. The 504 program generally cannot be used for working capital or inventory, consolidating or repaying debit.

• SBA 7a Loan Program. This program is available for borrowers in amounts up to $1,000,000 and the SBA will guarantee up to 80% of the outstanding balance. These loans can be used for most business purposes, including working capital (accounts receivable, inventory or debt consolidation).

• SBA LowDoc Program. This program allows small businesses to borrow up to $150,000 to start up or expand a business. The SBA guaranty allows a small business to invest in start up or equipment for expansion with a lower down payment and possibly a longer repayment term than a conventional business loan. Once a small business borrower meets the bank's requirements for credit, the bank may request a LowDoc guaranty from the SBA. A quick decision is a key benefit of the LowDoc program.