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From YouTube: Cupertino Small Business Symposium: Accessing Capital
Description
The first annual Cupertino Small Business Symposium was held Friday, July 19, 2013 at the Quinlan Community Center. The annual event is designed to help small businesses in Cupertino achieve their specific goals. In the second workshop, Silicon Valley SBDC's Emma Gonzalez and Frank Haggas talk about "Accessing Capital, Microloans, and Other Funding Options."
A
A
Okay,
great,
so
that
gives
us
a
great
idea
on
where
to
take
it
from
there.
Okay,
so
let's
get
started
so
could
go
continue
on.
So
what
we're
going
to
talk
about
is
preparing
to
seek
for
financing,
creating
that
financial
proposal,
what
it
should
look
like
the
Seas
of
credit,
and
we
have
a
breakdown
of
that
and
developing
a
good
banking
relationship.
A
So
where
do
you
get
the
money
from?
Where
does
it
come
from?
Well,
many
of
you
just
answer
that
question.
Your
self
funding
well
we'd
like
to
help
you
get
to
that
point
where
you
can
take
it
to
the
next
level
and
you
can
go
and
get
some
support
for
your
business
to
be
able
to
grow.
It
hire
additional
individuals.
Add
to
your
inventory,
so
there's
how
we
there's
different
directions
on
how
we
can
do
that
that
we're
going
to
talk
about.
B
We
want
to
help
you
identify
how
much
money
you're
going
to
need
and
what
sort
of
the
processes
are
around,
defining
what
money
you
will
need
and
how
you
can
go
about
getting
it
also
additional
the
sources
outside
of
the
bank
with
the
SBDC
and
another
micro
lenders
that
are
here
in
the
community
that
have
programs
that
you
can
take
advantage
of,
and
we
want
to
give
you
a
sense
for
what
you're
going
to
need
to
have
prepared
when
you
go
and
approach
these
sources
of
funding.
So
these
are
very
very
relevant.
B
Questions
have
answers
to
whom
should
I
be
asking
for
money
from
at
what
stage
of
my
business
am
I
in
and
as
a
result,
who
should
I
be
looking
for
funds
from
what
does
a
banker
like
myself
or
a
micro
loan
provider
want
from
me
and
and
how
do
they
approach
the
decision
making
this
is.
These
are
very
sharp
tools
to
have
in
the
toolkit
when
approaching
a
banker
or
a
micro
lender.
B
If
you
can
answer
these
questions
or
and
a
framed
your
presentation
in
response
to
these
questions,
you're
going
to
be
much
more
successful
yeah.
These
are
also
important
to
know
what
types
of
businesses
is
a
bank
or
a
micro
lender,
particularly
favored.
If
you're
asking
for
money
from
a
bank
or
a
micro
lender
that
it
doesn't
have
an
interest
in
your
particular
type
of
business.
B
Well,
then
you're
barking
up
the
wrong
tree,
but
if
we
can
help
you
get
prepared
and
give
you
the
information
to
help
find
the
resources
and
the
people
that
are
more
interested
in
your
type
of
business,
that's
what
we
would
like
to
do.
The
also
it's
important
to
know
how
long
it's
going
to
take
to
get
running
funding
if
you
want
to
bring
somebody
on
next
week,
is
a
new
employee
and
it's
going
to
take
two
months
to
get.
The
funding
obviously
want
to
want
to
put
these
things
together.
B
B
Does
the
bank
make
SBA
guaranteed
loans,
most
banks
too,
but
those
are
resources
that
as
a
newer,
as
is
it
a
relatively
new
business,
you'd
like
to
make
sure
that
you
can
take
advantage
of
and
are
there
other
government
programs
like
the
SBA
that
you
could
take
advantage
of
as
well?
The
here
we
are
that's
right,
we'd
like
to
in
some
cases
your
business
may
want
to
take
credit
card,
take
credit
cards
for
payment.
B
A
So,
with
micro
lending
is
kind
of
the
first
step,
many
people
when
they
come
to
see
us
at
the
SBDC,
their
first
question
that
they're
looking
for
is
we
need
money?
Can
you
write
me
a
check
we
wish
we
could,
but
unfortunately
we
don't
have
funds
to
lend
what
our
goal
is
is
to
be
able
to
prepare
you
to
get
ready
to
ask
for
money
from
a
lender
at
the
lowest
possible
price
or
whatever
alternative
lending
is
out
there,
that
you
would
be
able
to
qualify
for
a.
B
C
B
A
that
is
fair
perception
to
hold
ya
allah
near
my
time
with
a
mic
with
one
micro
lender.
In
particular,
there
are
several
the
I
work,
I
work
for
hsbc
bank,
but
I
volunteer
with
TMC
development
working
solutions
and
that
that
particular
micro
lender
gives
gives
loans
up
to
fifty
thousand
dollars
to
businesses
that
are
starting
out
or
have
a
year
or
two
under
their
belts.
B
Exactly
it's
it's
information
that
isn't
isn't
widely
dispersed,
and
it's
something
that,
as
a
member
of
that
organization,
we're
trying
to
communicate,
another
source
would
be
the
opportunity
fund
is
East
Bay
development
network
is.
There
are
several
different
micro
loan
solutions
here
for
businesses,
which
completely
deviates
from
the
idea
of
maybe
a
keep
alone
or
or
or
helping
to
get
water
in
sub-saharan
Africa.
So
the
so
those
sort
of
resources
are
available
to
will
continue
and
get
back
to
that.
Oh
here,
I'll
and
you're
mine,
while
I
fix
that.
A
So
landlord
financing
we've
been
able
to
help
clients
negotiate
when
they're
wanting
to
buy
their
business
and
they've
been
leasing
for
several
years
and
all
of
a
sudden,
the
owner
of
the
property
wants
to
sell
and
the
client
is
not
in
the
position
to
be
able
to
buy
that
building
outright
or
be
able
to
go
and
get
traditional
funding
from
a
financial
institution
for
cash
flow
reasons
or
a
number
of
other
reasons.
We're
able
to
help
and
step
in
and
help
negotiate.
A
A
My
boss,
I've
picked
this
up
from
him,
use
other
people's
credit.
He
calls
it
the
3,
f's
friends,
family
and
fools
right.
We
use
it.
We
borrow
from
family,
we
borrow
from
friends
or
we're
using
our
own
resources
to
be
able
to
fund
our
business
and
then
hope
to
pay
back
and
I
have
been
successful
back.
A
In
my
experience,
where
I've
helped
clients
wanting
to
start
a
business
they've,
either
a
had
to
take
an
equity
loan
out
on
their
own
personal
property
or
B,
take
a
loan
on
their
401k
to
be
able
to
get
their
business
started,
and
then
they
just
paid
themselves
back
right.
They
made
installments
to
themselves
on
a
monthly,
quarterly
or
annually
based
annual
basis
and
then
again
contract
financing,
which
is,
if
you
need
equipment
for
a
machine
shop.
You
can
get
a
loan
for.
A
B
Right,
it's
one
of
the
Seas
that
we're
going
to
talk
about
is
collateral,
certainly
in
it.
In
addition,
some
other
unconventional
financing
techniques
can
include
concession
sales
where
you're
doing
things
in
stages.
Excuse
me
and
I.
You
have
the
retailer
subleased
part
of
the
real
estate
to
complement
your
business.
I
staged
financing,
which
is
a
term
I'm,
not
necessarily
very
familiar
with,
but
the
obviously
it
implies
that
you're
getting
funding
in
tranches
is
your
business
develops.
A
Well,
one
of
his
employees,
who's
been
a
key
lead
in
his
success
of
his
business,
wants
to
buy
his
business
so
now
we're
being
introduced
to
this
employee
as
a
client
to
be
able
to
assist
him
and
purchasing
that
business.
So
talk
about
relationships
and
being
able
to
help
folks
make
that
transition.
This
is
where
it's
the
key
success
that
we
should
see
based
on
the
relationship,
and
we
already
know
the
success
of
that
cabinet
baking
business,
because
we've
been
in
relationship
with
them
for
the
past
five
years.
That's.
B
C
A
So
we
have
to
tell
a
story
about
your
business.
We
have
to
make
the
lender
become
as
passionate
about
your
business
as
you
are
so
part
of
our
role
through
the
program
of
the
SBDC.
Is
we
ask
pertinent
questions
we'll
talk
to
you
about
your
business?
We
want
to
learn
about
your
business,
find
out
what
your
goals
and
objectives
are,
and
then
we
help
you.
We
guide
you
to
put
this
information
together.
So
basically
you
know
what
is
it
that
you're
looking
for
tell
us
about
your
business?
What
is
your
financial
request?
A
What
is
it
that
you
need?
What
are
you
going
to
do
with
the
money
you're
going
to
buy
real
estate
you're
going
to
buy
equipment?
What
is
it
specifically
that
you
need
is
their
collateral
involved
again?
What's
the
return
on
the
investment
for
the
investor
and
a
business
plan,
one
thing
I've
learned
through
experience
in
my
30
years
in
the
financial
industry,
many
business
owners
believe
I
have
to
make
a
business
plan,
they
make
their
business
plan
and
then
they
file
it
in
a
door
and
then
they
never
look
at
it
again.
A
A
business
plan
is
a
living
breathing
document.
It
should
be
evolving
with
your
business
as
your
business
is
growing
and
it
should
be
able
to
be
changed
it's
as
easily
as
just
making
a
few
line
changes
on
the
document,
because
any
time
you
go
talk
to
any
buddy
about
your
business.
One
of
the
first
questions
out
of
their
mouth
is
going
to
ask
to
see
your
business
plan
and
if
you
haven't,
talked
about
it
in
a
long
time,
it's
going
to
be
kind
of
awkward
for
you.
A
Many
business
owners
or
potential
business
owners
will
pay
500
1500
2500
dollars
to
someone
who
writes
professional
business
plans,
and
that
is
fantastic.
That's
great!
If
you
have
the
resources
to
do
that,
but
what
I
would
encourage
you
strongly
to
do
is
to
take
the
time
to
write
it
yourself
or
to
work
with
that
person,
because
nobody's
going
to
be
as
passionate
about
your
business
as
you
are,
and
no
one's
going
to
know
your
business
as
well
as
you
do
so.
A
B
I
don't
have
the
I
guess:
I,
don't
know
how
to
build
the
next
mousetrap,
but
I
can
give
you
the
money
to
make
the
mousetrap
so
the
ad,
and
in
doing
that,
I
see
that
I
the
most
important
thing
that
that's
that's
relevant
to
a
bank
or
it's
relevant
to
the
micro
loan
provider.
Is
that
story
and
your
ability
to
communicate
that
story,
especially
at
the
micro
loan
level,
where
you're
coming
in,
and
you
want
that
first,
fifty
thousand
dollars
so
that
you
can
bring
on
that
additional
support.
B
That's
going
to
help
take
that
business,
that
you're
running
to
the
next
level
and
the
end
your
ability
to
communicate
not
only
just
the
story
about
how
you've
decided
to
build
this
mouse
trap.
How
this
is
going
to
be
the
next
big
thing
that
that's
relevant,
that's
very
well
and
good,
but
I
think
that
it's
it's
equally
and
perhaps
even
more
important
to
be
able
to
describe
how
you're
going
to
be
able
to
return
the
funds
that
your
borrowing,
how
this
particular
device.
B
This
particular
idea,
this
con
the
service
that
you're
selling
is
going
to
attract
new
buyers
is
going
to
keep
those
buyers
and
will
sustain
itself
going
forward
such
that
you'll.
You
should
be
able
to
borrow
more
than
fifty
thousand
dollars.
You
should
be
able
to
borrow
a
hundred
thousand
or
two
hundred
thousand
dollars,
because
this
is
going
to
perpetuate
itself
and
grow,
and
you
need
to
be
able
to
point
to
the
numbers
and
say
this
is
why?
And
you
need
to
be
able
to
point
to
yourself
and
say:
I
know
why
and
I
know
why?
B
D
B
Can
I
can
and
if
you'll
forgive
the
bias
I
can.
I
can
give
you
the
perspective
from
the
working
solutions
aspect.
The
kickstarter
is
an
interesting
is
a
great
concept,
not
just
interesting.
It's
a
great
concept,
but
there
are
a
lot
of
ideas
that
have
a
lot
of
merit
that
fall
and
fall
by
the
wayside,
because
they
don't
get
enough
donations
into
the
system.
So
when
you,
when
you
have
a
micro
loan
or
a
micro
loan
provider
like
working
solutions
involved,
you
can
for
small
loans
up
to
ten
thousand
dollars.
B
That's
a
fun
yeah.
Excuse
me
the
question.
The
question
was:
are
we
going
to
speak
to
the
relevance
of
the
importance
of
kickstarter
and
getting
businesses
off
the
ground
of
giving
businesses
the
initial
funding
that
they're
looking
for?
Do
they
have
a
right,
sir,
great,
very
good,
so
the
and
in
response?
Yes,
that's.
That
is
one
avenue
that
I
encourage
you
to
pursue,
but
I
also
encourage
you
to
look
before
I
even
called
the
more
traditional
sources
of
micro
loans
at
working
solutions
or
opportunity
fund
that
something
in
the
smaller
amounts.
B
The
ten
thousand
dollars
in
under
will
apply
a
similar
model
where
they'll
built
and
they
use
Kiva
to
do
it
to
get
a
sort
of
a
donation
model,
but
they
don't
have.
The
idea
doesn't
fail
if
it
doesn't
accumulate
sufficient
donations,
it
simply
just
gets
alone
for
the
rest
from
the
entity.
That's
backing
up
the
microloan,
so
lots
of
lots
of
information,
maybe
not
as
specific
as
you'd
like
it
to
be,
but
that
solution
is
out
there
in
kickstarter
is
highly
relevant
for
new
businesses
getting
off
the
ground.
Other
questions
before
we
continue.
Please.
E
Yeah
with
with
with
working
solutions
with
micro
loans,
are
you
going
to
get
into
a
little
bit
more
details
about
how
you
go
about
setting
something
like
that
up,
so
that
the
process
you
have
the
process,
we're
actually
setting
up
a
microloan
program
and,
and
and
what
are
the
requirements
I
mean
Kickstarter,
requires
a
video.
They
require
some
other
information
and
so
forth
it
to
be
accepted
in
their
system.
What
do
you
require
to
to
do
a
microloan
to
get
it
to
get
a
kid
to
get
a
microloan
excuse?
The
expression
kick-started.
B
Expression
excused,
of
course,
there's
a
reason
why
that
name
applies.
No,
the
ok.
Let
me
tell
you
a
little
bit
about
the
process,
the
the
reason
that
Kickstarter
and
I'll
answer
it.
In
this
way,
the
reason
the
Kickstarter
requires
a
video
is
because
that's
an
effective
way
to
communicate
the
story.
So
we've
already
underlined
that
number
one
you
need
to
have
the
good
story
and
that
story
needs
to
explain
repayment.
B
This
business
has
made
money
and
not
not
not
necessarily
made
money
and
then
spent
at
all
in
expenses
and
is
turning
a
loss,
because
in
the
same
way
that
a
bank
would
like
to
see
that
you
generated
a
profit
with
what
you're
doing
the
a
microloan
isn't,
isn't
an
angel
investor
or
somebody
that
just
is
going
to
believe
in
the
concept
without
proof
of
her
payment.
So
the
process
gathered
some
historical
financial
information
for,
however
long
you've
been
in
business
were,
however,
short.
You've
been
in
business.
B
Make
sure
that
you
clearly
are
able
to
understand
to
communicate
the
story
of
your
business,
the
house,
the
wise,
the
who's
right
and
and
be
prepared
to
sit
down
for
a
month,
and
it's
sometimes
six
weeks
to
go
through
the
process
start
to
finish
with
with
a
representative
at
each
of
these
and
I
know
that
opportunity
fund,
but
also
written
solutions.
The
the
representative
once
you've
once
you've
turned
in
this
information.
This
initial
information
will
sit
with
you
and
help.
B
You
drive
the
process
all
the
way
up
to
loan
committee,
where
you
will
present
your
story
in
in
total
to
20
people,
and
they
will
make
a
decision
on
the
spot,
and
then
you
walk
out
of
there,
either
with
a
with
a
plan
to
get
a
check
or
a
check
in
hand
to
hire
that
new
person
or
take
that
business
to
the
next
level.
Two
questions,
lady
in
the
white
furs.
B
Good
questions
all
terms
for
the
loan,
pricing
and
interest
rate
for
that
for
the
loan,
and
if
the
business
doesn't
succeed,
what
happens
then
in
this
I
presume,
is
in
the
working
solutions
or
a
microloan
scenario
correct
in
any
scenario?
Okay,
so
so
from
that
from
them
from
the
microloan
perspective,
the
loan
is
made
to
you
as
an
individual,
but
also
as
the
business.
So
as
an
individual
and
outside
of
the
business,
you
will
be
guaranteeing
the
loan
so
I'm
an
answer.
B
The
third
person
third
question:
first:
if
the
business
does
not
succeed,
yes,
you
will
be
expected
to
repay
the
loan,
and
terms
are.
Very
people
are
very
flexible
with
how
they
work
out
repayment,
but
going
back
to
the
more
nuts
involved
exactly
going
back
to
the
nuts
and
bolts
interest
rates
in
terms
alone,
the
loans
are
up
to
fifty
thousand
dollars
as
far
as
working
solutions
is
concerned
and
the
interest
rates
are
between
six
and
nine
percent.
Oh.
B
G
B
B
The
depositors
are
essentially
the
shareholders
and
need
to
be
able
to
be
be
assured
that
I'm
going
to
lend
out
money
that
will
eventually
be
repaid
and
that's
the
logic
behind
evaluating
historical
performance
to
see
if
the
business
is
making
money
now
applying
that
concept,
that
same
concept
to
the
microloan
scenario,
there's
a
higher
expectation
of
failure
and
or
I
like
to
call
it
lack
of
success
or
delayed
success.
The
end
and
that's
why
the
story
is
more
important.
B
B
B
Of
course
in
that,
and
and
that's
why
that's
why,
when
we
talked
about
the
the
sources
of
funding,
including
F,
F
and
F,
right
friends,
family
and
and
friends
and
family,
the
those
are
the
sort
of
expenses
the
start-up
costs
that
they
are
anticipated
or
you
personally
are
anticipated
to
shoulder
the
and
then
once
that
concept
has
been
proven,
even
if
it's
only
been
proven
to
the
first
dollar
profit.
That's
when
am
I
cologne
can
really
drop
the
gas
on
the
fire.
So
to
speak.
Other
questions
before
you
move
on.
B
I'm
in
in
the
case
of
a
business,
it's
just
getting
off
the
ground.
Yes,
that
would
be
your
personal
tax
return,
because,
because
there's
a
personal
guarantee
and
the
question
again
for
the
crowd
is
the
requirement
that's
generally
listed,
there
is
generally
three
years
of
personal
tax
returns
or
business
tax
returns
if
the
business
has
filed
them.
B
A
fine
question:
the
difference
between
a
microloan
and
and
bank
financing
and
the
venture
capital
world,
the
and
angel
investors
which
I'm
going
to
put
together
in
the
in
the
venture
capital
world.
The
key
difference
between
those
those
two
worlds
of
sources
of
financing
is
is
principally
equity
or
ownership.
Now
the
venture
capital
and
in
some
cases
the
angel
Capital
are
going
to
one
are
going
to
invest
in
your
business
and
I
use
that
word
as
a
to
loan.
B
You
money,
because
they're
expecting
a
return
and
that
return
will
either
be
a
ginormous
percentage
of
your
forgive
the
word
of
your
profits
in
your
in
you
and
your
ongoing
income,
or
maybe
a
percentage
of
the
ownership
of
the
concept.
If
it's
a
novel
idea,
a
bank
isn't
interested
in
that
the
bank
would
like
you
just
to
keep
to
sustain
your
business
going
forward.
So
that's
the
principal
difference
between
the
two
worlds
is
ownership,
sir.
In
the
back
and
then
we'll
go
over
you
I'm
going
to
go,
read
first,
I.
E
So,
as
I
have
a
question
with
regards
to
as
an
alternate
akin
microlending
be
used
as
an
alternative
to
factoring
so,
let's
say,
for
instance,
you
have
a
business
model
where
you
have
an
order.
We
have
a
purchase
order
to
build
30,000
units
of
a
widget,
but
it's
going
to
cost
you
seventy
thousand
dollars
to
do
that,
you're
going
to
sell
it,
but
the
purchase
order
you're
clearly
going
to
make
you're
going
to
sell
it
for
twice
that
amount.
E
So
you're
going
to
have
ultimately
a
revenue
of
honor
for
the
purchase
orders
440,000
when
you
need
70,000
producer,
but
you
don't
have
that
seventy
thousand
dollars
to
producing.
So
you
also
can
you
take
that
purchase
order?
Is
that
story
in
itself
without
the
detailed
business
plan
and
all
if
you
walk
ins
I
need
a
microloan
for
this
seventy
thousand
dollars?
I
got
this
purchase
order
behind
it.
B
May
or
may
not
be
that's
a
fine
question.
Let
me
read,
let
me
repeat
it
the
essentially
the
difference
or
the
the
merits
between
choosing,
and
is
there
necessarily
an
exclusive
choice
between
factoring
which
is
using
invoices
to
finance
your
activity
or
getting
a
micro
loan
which
is
its
more
general
or
getting
a
bank
loan
which
would
fit
in
the
same
bucket
again
general
for
the
business
and
I'm
making
that
differentiation,
because
that's
that
is
in
fact
the
answer.
The
factoring
the
story
is
that
one
invoice?
B
The
story
is
I'm
going
to
make
this
it's
going
to
cost
me
x,
but
I'm
going
to
sell
it
for
x
plus
and
I'm
going
to
I'm
going
to
turn
a
profit,
but
I
don't
have
x
yet
I
can't
I,
can't
and,
and
so
the
factor
comes
in
the
factoring
source
of
financing
comes
in
and
gives
you
the
money
to
produce
it
on
the
basis
of
that
invoice.
I'm.
A
Just
going
to
interject
here
real
quickly,
Frank's
covering
a
lot
of
great
points,
but
also
the
Small
Business
Development
Center
is
able
to
help
from
A
to
Z.
So
if
your
rep
getting
prepared
to
go
to
a
traditional
bank,
we
can
help.
You
prepare
that
business
plan
make
sure
that
you
have
the
answers
to
their
questions.
When
you
walk
in
the
door
and
sit
in
that
chair.
A
We
can
help
you
prepare
for
that
as
well
and
kind
of
point
you
in
the
direction
of
well
this,
for
what
your
particular
need
is.
This
micro
lender
might
be
better
or
this
one
might
be
better
depending
on
what
the
need
is.
So
our
experience
is
there
to
help.
You
guide
you
in
the
direction
that
you
need
so
you're,
not
out
there
fishing
right,
trying
to
figure
out
where
am
I
supposed
to
from
here
right.
So
that's
one
of
the
services
that
the
Small
Business
Development
Center,
provides
that's.
B
D
B
You're
right
you're
right,
not
just
a
not
just
not
just
to
follow
but
a,
but
at
the
actual
original
question.
I'm
sorry
didn't
answer
the
the
you
know
is
it:
is
it
exclusive
am
I
getting
it
right,
the
the
question
is:
is:
can
you
pursue
both
or
is
one
more
favorable
than
the
other
in
the
end?
Does
one
cost
more
than
the
other?
The
answer
to
all
three
is
that
it,
it
really
depends
and
a
factor
is
going
to
take
as
much
as
ten
percent
of
the
transaction.
B
You
know
in
some
cases,
depending
on
how
risky
the
transaction
is,
you
know
or
could
be
smaller
the,
but
you
in
a
micro
loan,
because
the
idea
is
that
in
a
bank
loan,
because
the
idea
is
that
the
business
will
repay
the
loan
over
a
period
of
time.
You'll
know
that
the
interest
rate
is,
as
I
said
earlier,
six
to
nine
percent
for
my
colognes
or
or
less
for
bank
loans.
B
B
F
B
Is
the
question
is,
is
it
really
a
small
business
of
franchise
of
McDonald's
or
subways?
And
yes,
the
answer
is
yes,
it
is
the
and
it
remains
a
small
business.
I
forget
what
the
SBA's
definition
is,
but
I
think
it's
up
to
40
million
dollars
in
revenue
for
the
for
the
business
entity
itself
and
may
own
one
or
several
McDonald's.
In
this
scenario
you
know,
but
it
would
still
be
classified
as
a
small
business
I
think
there's
an
employee
number
right.
A
We
can
I
did
so
I'm
to
be
respectful
of
everyone's
time.
We
have
about
15
minutes
left.
So
what
I
want
to
talk
about
quickly
and
then
we'll
just
kind
of
keep
going
as
we
talked
about
the
Seas
of
credit,
so
I'm
just
going
to
highlight
them
very
quickly.
It
talks
about
character,
trustworthiness
of
the
owner
for
business
again
that
talks
about
your
credit
score
right,
you
know,
are
you
responsible,
you
make
your
payments
in
a
timely
manner.
A
Capacity
and
Frank
talked
a
little
bit
about
that.
Your
ability
to
repay
right,
if
you're,
starting
a
brand
new
business,
the
lender,
no
matter
who
they
are,
whether
it's
a
bank,
a
micro
lender
or
a
VC
they're,
going
to
look
at
your
ability
to
pay
them
back
if
the
business
does
not
work
collateral
is
their
equipment.
What
is
there
that
we
can
do
the
economic
trends
of
the
business
that
you
have
and
again
the
capital
are
you
committed?
B
Does
your
business
generate
enough
money
to
repay
the
loan
you're
asking
for
and
what
is
our
alternative?
If
something
happens
and
you're
not
able
to
sell
what
you're
selling
to
make
money?
Is
there
something
we
can
fall
back
on
to
make
the
bank
shareholders
whole
all
right
were
the
depositors.
In
this
case,
everybody
in
this
room
is
a
deposit
at
bank
or
credit
union
from
the
most
respect
for
the
most
part,
and
that's
that's,
who
you're
really
borrowing
the
money
from
so
the
from
a
microloan
perspective?
B
It's
it's
number
one
number,
two,
the
credit
and
financial
history
of
you
personally
is
going
to
be
very
key
for
a
microloan
scenario.
Have
you
been
able
to
repay
the
debts
that
you've
taken
on
personally
in
the
past
and,
secondly,
another
character?
Do
this?
This
is
the
story
you
know
did.
Have
you
been
able
to
to
see
a
task
through
to
its
completion,
to
a
successful
completion
and
and.
B
Success
isn't
necessarily
a
guarantee
of
future
success
and
in
fact,
sometimes
people
learn
the
most
from
their
failures
and,
and
that
becomes
the
story
as
to
why
the
business
is
going
to
succeed.
But
but
those
those
are
the
key
functions
of
the
key
parts
of
a
microloan
scenario.
The
going
back
to
item
number
four
and
collateral
in
the
in
the
micro
loan
in
the
startup
world.
B
You
know
it's,
it's
quite
understandable
that
a
there
isn't
any
business
collateral,
either
you're
you're
using
factoring
to
to
buy
the
inventory,
and
in
that
scenario
the
the
factor
owns
both
the
inventory
and
there
and
the
receivable.
So
so
the
so
the
traditional
collateral
for
a
bank
loan
isn't
there
the
and
in
those
scenarios
where,
where
the
true
tional
collateral
is
tied
up,
perhaps
in
the
past
few
years,
you've
been
lucky
enough
to
finance
your
own
home
and
have
equity
there
in
the
micro
loan
and
in
the
in
the
small
business
loan
/
world.
D
B
Just
I
understand,
I,
understand
the
question
the
that
is
internet
intellectual
property
becoming
as
as
viable
as
say,
a
building
like
the
one
we're
in
or
the
traditional
accounts
table
and
inventory
sources
of
collateral
for
lines,
credit
and
from
the
bank's
perspective,
the
answer's.
No,
the
from
the
venture
capital
and
angel
funds
perspective.
B
Yes,
because
those
that
industry,
that
those
individuals
in
that
industry
have
the
expertise
to
both
analyze
and
evaluate
that
intellectual
property,
but
also
have
the
wherewithal
to
go
about
and
and
when,
when
your
business
isn't
successful
immediately,
they
can
take
it
and
make
it
successful.
A
bank
isn't
very
good
at
that.
The
same
way
that
the
bank
isn't
very
good
at
taking
foreclosed
property
and
reselling
it.
So
the
principal
business
of
the
bank
is
to
sustain,
go
forward.
B
Businesses
not
necessarily
rely
on
on
the
collateral
to
make
the
deal
work
or
two
to
make
the
bank
whole,
even
though
it's
supposed
to
make
the
bank
whole
and
so
getting
back
to
the
point.
Intellectual
property
is
very
difficult
for
a
bank
to
realize
the
value
on
and
as
a
result,
it
doesn't
get
as
much
strength
as
you
would
hope
it
would.
Five.
A
Minutes
we
have
nine
minutes,
okay,
so
let's
so,
we've
kind
of
talked
about
developing
a
good
banking
relationship
and
I
think
anything
we
do
relationships
are
key
and
so
having
someone
that
you
have
a
strong
relationship
with
that
is
bought
into
your
business.
That
you've
started
with
again
in
my
30
years.
I
have
clients
that
I
still
stay
in
touch
with,
even
though
I'm
not
at
the
bank
anymore,
but
they
became
you
know,
friends,
because
you
build
that
relationship
for
the
thing
for
thinking
about
the
time.
A
A
A
A
A
Again,
talking
about
different
areas
that
are
available,
there's
a
great
program
called
the
Patriot
Express
pilot
loan
that
I'm
right
now
working
with
someone
who's
trying
to
start
a
restaurant.
He
just
came
home
from
Afghanistan
about
a
year
ago
and
he's
wanting
to
start
a
business.
So
it's
pretty
exciting.
A
Okay,
so
we
ran
through
our
five
minutes.
We
ran
over,
but
Frank
and
I
will
be
available
to
answer
any
questions
that
you
have.
There
are
cards
on
the
table
that
have
the
email
and
the
website
to
the
SPD
center
of
Silicon
Valley.
We
also
have
workshops
that
you're
able
to
attend
in
the
handout
that
I
gave
you.
There
is
also
an
evaluation
if
you
would
be
so
kind
as
to
complete
that
we
would
greatly
appreciate
it,
and
thank
you
again
for
your
time.