Did you know that the PathStone Enterprise Center exists to help promising businesses that have been unable to get loans from banks?
Alex Castro, senior vice president of operations at PathStone Corp., outlined how the Enterprise Center process works at the June luncheon meeting of the Rochester Hispanic Business Association.
The size of loans granted by the Enterprise Center ranges in size from $1,000 to $250,000. Most loans range from $25,000 to $75,000. Interest rates range from 7% to 9.5%, Castro said. Loans are for five years.
Enterprise Center staff work with aspiring small business owners to complete a business plan that includes a description of the business, a market analysis, a marketing plan, and uses of the proposed loan proceeds. For people with an existing business, a shorter business plan summary detailing current operations and future plans is required.
Castro noted that the technical assistance that applicants receive with their proposal is vital to its success.
If the Enterprise Center staff thinks the applicant’s idea is fundable, the applicant makes a request in front of the Loan Committee, which is made up of community volunteers who have experience in evaluating small business opportunities. Castro likened the process to a mini version of the popular TV show Shark Tank.
Castro also told the RHBA members that he’d like them to spread the word about the program so PathStone can serve more people in under-served communities. For more information, go to http://www.theenterprisecenterinc.com/homepage.