Jacob Singer Executive Director OBDC Small Business Finance

Over the last seven years, Jacob Singer has witnessed OBDC Small Business Finance’s impact on the local economy. He is delighted to have the opportunity to join the organization as Executive Director.

As Director of Portfolio Management and Investment Development for Pacific Community Ventures (PCV), one of Jacob’s primary responsibilities was to generate and evaluate lending and investment opportunities for the organization in Oakland, which is one of five primary geographic areas where PCV focuses its programs.  Consequently, he developed a wide network in Oakland and other East Bay communities among bankers, city, county and state agency officials, economic development non-profits, and business people. He would like to continue to help support OBDC’s mission in his new capacity as the organization’s newest executive director. 

Jacob says. “My experience as a community economic development professional and businessperson provides an excellent foundation upon which to strengthen the existing organization and expand the positive impact that OBDC can have on small businesses through its programs and services in the immediate future.” 
  
Jacob has a deep appreciation and respect for the role that entrepreneurs play in the local and regional economy. Furthermore, Jacob welcomes the opportunity to get to know all OBDC partners and clients to coordinate common efforts that focus on the success of entrepreneurs and existing small businesses.

Dopo Owner Jon Smulewitz

OBDC Small Business Finance provided a startup loan to open the restaurant in 2003. Soon after, the restaurant became extremely popular and has been written up in the San Francisco Chronicle, Oakland Tribune, East Bay Express and other publications for the best gourmet pizza at reasonable prices.

Due to high demand for the restaurant's fine food and services, the owner will expand the seating area of the restaurant to double the amount of seats from 20 patrons to 45 with help from a new OBDC Small Business Finance Neighborhood Economic Development Fund business loan.

The nice and intimate little spot with good country Italian food, a very nice wine list and good service is located at:

4293 Piedmont Ave.
Oakland, CA  94611
(510) 652-3676

Oakland City Hall view during Comcast Art and Soul Festival

The City’s Cultural Arts & Marketing Division works to promote Oakland as a place to do business and live. The marketing program supports business attraction and neighborhood commercial revitalization through the production of vital promotional tools that position Oakland as a premier location for business and investment. These include print materials, websites, advertising, editorial coverage, special events and other tools to convey a clear, consistent message about Oakland to a wide audience.

A key component is the annual Shop Oakland campaign which touts the city’s 40 diverse shopping destinations and underscores the importance of keeping shopping dollars in Oakland. The new Shop Oakland website features a searchable database of Oakland retailers. Local merchants are encouraged to add their shops to the database by logging on to www.ShopOakland.com and clicking on the Merchants Only link. By completing the brief survey, merchants can generate additional exposure for their stores.

Other resources suggested by the Cultural Arts and Marketing Division include:
• Business support programs offered by the City of Oakland, entrepreneurs and business owners should visit www.Business2Oakland.com. This website has details on Enterprise Zone benefits, business loans, commercial district incentives, redevelopment, workforce development and much more.

• Vending opportunities for special events held in Oakland, visit www.oaklandcvb.com to view a comprehensive events calendar. The calendar listing includes contact numbers for the event organizer who will have information on vending details specific to their event. The City of Oakland’s largest festival – the 6th Annual Comcast Art & Soul Oakland festival, over Labor Day weekend, attracts more than 70,000 revelers who enjoy three sensational days of music, food, fun and art in beautiful downtown Oakland. ww.artandsouloakland.com.

• Grand Opening events, entrepreneurs just launching their new venture in the City of Oakland may be interested in assistance with invitation, media lists, vendor referrals and event logistics. If you need additional information about marketing your business through City of Oakland programs, contact Harry Hamilton at (510) 238-2107 or hhamilton@oaklandnet.com when grand opening planning begins.

OBDC Loan Officer Mila Roudominskaia

Recently, OBDC has received many requests from people who want to buy franchises. Many new entrepreneurs choose franchising as an alternative to starting a new, independent business from scratch because of the risk and work involved in starting a new business. By purchasing a franchise, you often can sell goods and services that have instant name recognition and can obtain training and ongoing support to help you succeed. But like any investment, purchasing a franchise is a risk.

To help you evaluate whether owning a franchise is right for you, the Federal Trade Commission has prepared a booklet. It will help you understand your obligations as a franchise owner, how to shop for franchise opportunities, and how to ask the right questions before you invest. You can read the booklet here: http://www.sba.gov/starting_business/startup/consumerguide.html

Costs of Buying a Franchise

One of the First things to consider before buying a franchise are its costs. You should get a copy of the franchisor's disclosure document that tells you the costs involved when starting one of the company's franchises. It will describe any initial deposit or franchise fee, which may be non-refundable, and costs for initial inventory, signs, equipment, leases, or rentals. The following checklist will help you ask about potential costs to you as a franchisee.

• Continuing royalty payments
• Advertising payments, both to local and national advertising funds
• Grand opening or other initial business promotions
• Business or operating licenses
• Product or service supply costs
• Real estate and leasehold improvements
• Discretionary equipment such as a computer system or business alarm system
• Training
• Legal fees
• Financial and accounting advice
• Insurance
• Compliance with local ordinances, such as zoning, waste removal, and fire and other safety codes
• Health insurance
• Employee salaries and benefits
All financial information you collect will be helpful for you to estimate total capital necessary to start your franchise and will prepare you to a conversation with a lender if your own capital is not sufficient.

Earnings Potential

Franchisors’ earnings projections can be misleading. You can insist upon written substantiation for any earnings projections or suggestions about your potential income or sales.

Franchisors are not required to make earnings claims, but if they do, the Federal Trade Commission’s Franchise Rule requires franchisors to have a reasonable basis for these claims and to provide you with a document that substantiates them. This substantiation includes the basis and assumptions upon which these claims are made. Make sure you get and review the earnings claims document.

OBDC recommends doing your own research on potential revenue and profitability of the business and prepare your own financial projections. Doing so indicates to your potential lender that you are knowledgeable about the cash coming into your business and its expenses.

Your Investment and Financing

Before investing in a particular franchise system, carefully consider how much money you have to invest and how much you are planning to borrow. The following checklist may help you make your decision.

• Do you have a favorable credit rating?
• How much money do you have to invest?
• How much money can you afford to lose?
• How much time do you have to obtain financing?
• Will you purchase the franchise by yourself or with partners?
• Do you have savings or additional income to live on while starting your franchise?

Starting up a business can be a tremendous strain on your personal finances. It can take six months or more before your new venture is profitable and can provide financial support for you and your family.

When a potential franchisee applies for OBDC’s loan programs or SBA guaranteed loan programs, the lender and/or SBA will consider and evaluate factors such as general eligibility, creditworthiness, conflicts of interest, character, use of proceeds, and discrimination.

SBA Franchise Registry

SBA has introduced a new Franchise Registry program that has been a great time-saver for franchisees to be. When evaluating a franchise opportunity, look for system eligibility with the Franchise Registry www.franchiseregistry.com/registry/. If the franchise system is eligible for this program, you will receive expedited loan processing through the SBA.

The Registry lists names of franchise companies whose franchisees enjoy the benefits of a streamlined review process for SBA loan applications. Loan applications for registered franchisors can be reviewed and processed quickly and efficiently. Small business owners get better service and quicker loans.

Participation in the Registry is voluntary. If a franchisor chooses not to participate in this streamlined review process, loan applications by its franchisees will still be reviewed individually by SBA or its lenders. You should not construe a franchise system’s presence on or absence from the Registry as either an endorsement by SBA or an indication of the franchise system’s quality or profitability.

If you have any questions on how to obtain financing to buy a franchise or for a quick assesment, feel free to call Mila (510) 763-4297 Ext. 100

Learn how a wide range of banks and other lending organizations evaluate your loan applications and the types of funding that they can provide. You will have the opportunity to meet and discuss your own financing issues with representatives from banks and other lending organizations.

Panelists Include: Mechanics Bank Entrepreneurial Development San Francisco SBA District OBDC Small Business Finance TMC Working Solutions

If you wish to register by phone, mail or in person, please contact East Bay SBDC at (510) 208-0410 or e-mail classes@eastbaysbdc.org Advance Registration Fee: $10

Thursday August 24, 4pm - 6pm at Cal State East Bay SBDC Oakland Professional Development Center 1000 Broadway, Suite 109 (at 11th Street)