Small Biz Owners Get The Facts About Bank Loans

RANCHO MIRAGE – Local small business owners got a taste of their economic future inside the Agua Caliente Casino & Spa’s Cahuilla Ballroom.

Shannon Lichliter, co-owner of Main Stream Aquatics, said, “We’re not rolling in the money. I’m not ready to retire or to give up my day job at this point in time. But, we’re getting there.”

Alsoin attendance, bank representatives and financial consultants giving businesses some words of wisdom.

“Small businesses are the engine of our economy,” said Rachel Baranick, Deputy District Director from the U.S. Small Business Administration. “Small businesses are the lifeline of our economy.”

When President Barack Obama proposed a $5,000 tax credit last week for every new worker hired, it was the type of lending support some small business owners needed to hear.

“I thought it was awesome,” said Mike Lemche,general manager of MicroCool. “He talked about the dollars he was going to give to small businesses. I applauded. I stood up and applauded.”

But, Lemche, who helped buy the misting system company six months ago, said getting a bank loan hadn’t been easy.

“The banks’ storyis…since we just previously acquired this business six month ago, they want to see two years history from our little group.”

Rachel Baranick says banks are not making it harder to get a loan. In fact, she says, the federal government is guaranteeing banks up to 90% of a loan in case something goes wrong.

Still, she advised: “If you’re going to make a loan to anybody, you want be sure it’s paid back. So, you want to have the cash flow to pay the loan back.”

A frustratedLemche pointed out that MicroCool has been in the desert for 30 years.

Other local business owners at the expo say they are ready to expand as well. They did their homework, sized up the competition, researched the market.

They just weren’t expecting banks to be so conservative with their cash.

“Our success rate in talking with the banks has been not been good lately,” said Lemche.