I went to the Small Business Administration website, and it’s a bit daunting. Do any Dopers have experience with the SBA?
I’d like to get financing to:
A) Train for an receive a Certified Flight Instructor (Helicopter) certificate (approximately $35,000), and;
B) Obtain capital for one helicopter suitable for training (a Schweizer 300CB, preferably new, approximately $200,000), and;
C) Capital for obtaining office and hangar space (approximately $1,000 per month); and,
D) Capital for salaries and other overhead until the business is self-supporting (approximately $100,000 per year), and;
E) Open my own flight school (approximate total $350,000).
Does the SBA have a program that will help me do this? Is there a grant (i.e., “free money”)?
As I understand it, the SBA won’t give you a grant in the amounts you’re talking about.
My department at the library has a collection of resources for non-profit grantseekers (called the Grants Resource Center, natch.) Though we deal strictly with the philanthropic/nonprofit sector, we frequently get patrons looking for money to start up a record label, raise the capital to buy in to Amway, remodel their house, or whatever. We refer them to our Government and Business department. They often wander back our way, saying “They couldn’t find me any gubmint money. How much can you get me?” Not that your situation is in any way similar to those types, but it’s really the only experience I have with this sort of thing.
Your best bet will most likely be some sort of financial aid for the training alone. After that, you’d probably need to hook up with your local chamber of commerce. It’s probably a good idea to check out the small business collection at your local public library, too.
They have a definition of “small business” that doesn’t cover a single restaurant. You’d need a couple, and have been in business a couple of years before you apply. It’s free money for people who are already rich. Republican’s concept of charity.
Every year the Los Angeles Times usually sponsors a small business seminar. They advertise in their newspaper. There is an entrance fee. It’s designed for people wanting to start a sm. biz. I think KFWB is a co-sponsor. I say usually because I don’t know if Sept.'s events changed anything re: the seminar. Many topics, including how to obtain venture capital.
Having dealt with the SBA when taking over my business, one thing is important to remember. SBA does not give grants. They can help arrange financing (loans) or backing loans, but they really do not give any money.
Also the loans that they arrange (usually with a local bank) require at least a 30% cash down payment and some sort of funding for capitalization (money to live on while you start your business.
So with the figures the OP provided, you would need a cash down payment of at least $150K to even obtain the loan, with the balance to be guaranteed by the SBA
Other options would be to do what the airline companies do, that is, lease the Helicopter rather than buy it.
What SBA (and SCORE) really can help with is information on what else you need to consider when starting your business. Such as insurance, Taxes, employee benefits, and all the other mundane aspects of operation of a business.
They can also help you with a business plan. That is find out your market, your competition, and realities that you may not know about.
I don’t know the SBA specifically (not being American), but if it’s like the government business development organizations I’ve dealt with in the past, I think mapsmith has the best picture.
If you’re really looking for someone to bankroll your business, the aforementioned business plan is crucial. That will be the first thing any potential investor will want to see. I’ve helped raise millions of dollars before (everything from a few hundred thousand for a startup, to a $10,000,000.00 private placement for a public company), and I can tell you that it’s a grind every time.
For the mere price of a beer or three, I might be convinced to help you get started on one when I’m in LA in the middle of November. If you ask nicely.
OTOH, there are a large number of consultants who will help you right a business plan (including not-for-profit ones such as the SBA – woah! segue back to the OP!!). And, I should mention that I can’t be had for just any ol’ beer. No Bud, Miller or Coors for me. Gotta be at least Sam Adams.
There is actually boilerplate software available for Business Plans. It helps you get on the right track. And it usually is in a format that the money people want to see. (Sorry, I don’t have any specific names. But that is what Google is for!)