Schlee turned to the Utah Microenterprise Loan Fund, which floated him $25,000 last year - money he used to stock his store with gas-powered scooters and electric bikes.
In February, Schlee received a bonus from the UMLF: Free business advice from a team of professional consultants.
The pointers are part of UMLF's Micro Business Assessment (MBA) program, a new requirement for anyone seeking financial help from the group. The process allows UMLF to better evaluate applicants, but it also provides solid advice to business owners like Schlee.
"They will be able to get a lot more technical assistance up front that will let them know where to take their businesses next," says Kathy Ricci, director of the UMLF. "Our goal is to have [our clients] be more successful and to make stronger loans."
Here's how it works: UMLF assigns its group of business professionals, with specialities that include law, finance, accounting, marketing and public relations, to evaluate loan applicants. During the Micro Business Assessment, a business adviser interviews the loan applicant and reviews the applicant's paperwork. The adviser shares the information with other MBA advisers, independent professionals who offer their services to UMLF at a discount. The adviser then prepares a report with recommendations for the loan applicant. UMLF Credit Committee reviews the report, in addition to a business plan presentation by the applicant, and approves or declines the loan.
Ricci says the MBA program gives the loan applicant $800 to $1,000 of business advice for a loan application fee of $75 to $225.
"When anyone starts a small business, it's so overwhelming to have to do everything," says Lisa Kalantzes, a marketing and public relations consultant who does Micro Business Assessments. "The MBA process allows the consultant to stand back and look at the bigger picture . . . and then act as a resource to guide [the small-business owner] in the right the direction."
Kalantzes says she looks at how well the business will fare in its particular market. She advises new business owners to start small and grow big instead of expanding their product lines too quickly. She also offers help with media relations and financial planning. She says the best way to grow a business is to make it a unique and integral part of the community.
For Schlee, the marketing tips were especially helpful, and he can't say enough about the boost his business received from the loan. Although he's still getting over the "two-year hump," he did as much business in March as in four months of 2004, he says.
"I probably wouldn't be where I'm at without it," Schlee says. "It's that seed money that helped the business grow."
rwinters@sltrib.com
Microenterprising
What is the Utah Microenterprise Loan Fund? A private nonprofit backed by financial institutions, local governments and charitable foundations that gives micro-loans of $3,000 to $25,000 to small businesses that cannot qualify for traditional bank loans because they lack sufficient collateral, credit or business experience.
What is microenterprise? A small business that requires less than $35,000 to start and has five or fewer employees. UMLF loan recipients are often home-based business owners, women and minorities.
How do I apply for a micro-loan?
Attend free orientation at UMLF office, 154 E. Ford Ave. (3415 South), Salt Lake City.
Complete loan application and Micro Business Assessment (MBA) worksheets. (Fees range from $75 to $225, depending on household size and income.)
Complete Micro Business Assessment with business adviser provided by the UMLF. Get advice on how to strengthen business plan.
Present business plan to UMLF's Credit Committee. Applicants notified of loan status within two days.
- Source: http://www.umlf.com.
