Brokers & Owners: Mind Your Own Business

Mind Your Business

By Katherine Bishop

New regulations designed to help and encourage Illinois small business growth and expansion, can also apply to your real estate office.

If you are looking to grow your business, whether by property acquisition, seeking more physical operational space, adding one or more branches, and/or taking on more employees or independent contractors, there are some new methods for obtaining funding.

One such method is by grant funding. Suppose you wish to purchase the building which currently houses your main office, or lease or purchase an additional facility for expansion anywhere within Illinois.

The big advantage to grant funding is that it may not need to be paid back, even when more than $100,000 is awarded. As a government program, the goal of providing funding for business expansion (and startup) is to generate more jobs and the revenue which results.

For example, suppose you wish to purchase a building with room for two separate businesses to operate from (within Illinois). You can put your current or branch real estate office in one section, and lease out the remainder to another business. This action puts you into the leasing business (if you are not already doing so).

You can find out within a matter of days if you could use a minimum of $100,000 of grant funding to accomplish this. This can happen whether you wish to start a separate corporation or expand a current one.

Visit Fewcle.com for information or contact Rich Leonard at (800) 457- 1958.

Local builders and developers, along with property investment clients, can also benefit from these programs, which would mean additional listings for your office.

Meanwhile, if you (or an important client) are instead considering taking your real estate (or a separate entity) public in the near future, there is similar help available.

The 501(c)3 Business Credit Literacy Initiative recently announced the SBDI: Go Public Program. The new initiative is a unique and needed resource, to assist small businesses in accessing the capital needed to reach their potential, by attracting investors previously inaccessible to most entrepreneurs.

According to the United States Small Business Administration, the number one concern of most entrepreneurs is inadequate access to capital to start or grow their business. While using credit and loans may assist in some circumstances, too much debt can bring about other challenges.

This leaves only two alternatives – growth through excess cash flow, which is rarely an option in the real estate business, or the sale of equity. Equity investments are often made by the founder(s) but is rarely enough for the business to meet its needs. This leaves just one logical choice – outside investors injecting capital in exchange for equity in the business.

Anthony L. Leone, a former Wall Street trader who has helped hundreds of entrepreneurs secure equity, states, “The problem is simple – many small business owners do not have the resources or assistance needed to attract professional investors who have the money to inject but only when certain circumstances are met. For instance, investors want to have certainty in the accurateness of the business information presented and the liquidity to be able to buy and sell shares. The SBDI: Go Public Program is THE solution needed by most of the 28,000,000 small business owners nationally.”

K. Mark Deubner, JD, a corporate attorney with expertise in strategies to help businesses go public explained, “The SBDI: Go Public Program leverages the Security Exchange Commission’s Regulation A – an under-utilized method which provides an exemption that eases the burden to raise funds for small and emerging businesses. Additionally, rules under Tier 2 of Regulation A further simplifies the process as it preempts state regulations of the offering.”

Since many entrepreneurs lack the historical $100,000 plus, to take their small business public, the SBDI: Go Public Program reduces the out-of-pocket cost to less than $3,000, in most cases, for qualified businesses. It provides a turn-key solution for raising the capital needed to reach full business potential, create jobs, and strengthen communities.