FREQUENTLY ASKED QUESTIONS

What services does the WBC of NC offer?
The Women's Business Center of NC is specifically designed to provide
opportunities and tools to help women entrepreneurs achieve their business
goals. The organization provides one on one counseling, workshops and
seminars, business plan development assistance, financing assistance
including loan packaging and networking opportunities. Also offered to
clients is access to the WBC business library and resource center and
computer usage including Internet access.

Does the SBA have grant or loan money available to
start my business? There is no federal grant money for individual
business owners. Even though many publications and talk shows
publicize grants to small businesses, the only grants available are for
non-profit women's business centers that provide training for women
who want to start or expand their businesses. The other grant program
is for research and development for technology-based products and
services for the government. However, the SBA has an excellent
financial assistance program, which encourages bankers to help small
businesses. This "loan guaranty" program is the agency's priority.
Apply for a business loan at your bank. If financing is unavailable on
reasonable terms from the lender, ask the bank to submit your loan
application to the SBA for consideration. In partnership with your local
bank, the SBA may offer a government guaranty of a loan to be made
by that lender. SBA programs are especially valuable for new business
start-ups and in instances where collateral is weak and/or a longer
repayment term is needed.

Credit-worthy potential small business owners and existing small
business owners who require capital to start or expand their business
may find that SBA's financial assistance programs can help them
secure the financing that they need. SBA has no funding for direct
loans. For information on SBA loan programs contact the SBA office
closest to you or call the SBA Answer Desk at 1-800-8-ASK-SBA.
Information is also available on the SBA Web site at: www.sba.gov;
click on "Financing" to see the variety of loan programs that are
available through the SBA. Once you choose a loan program, you
will see how the program works and whom to contact for

Do I need a business license to run a business?
A business will need a business license to run a business in the
city/county or state in which business is being conducted. Please check
with the Business License Information Office (BLIO) for requirements
at 919-807-2166.

Can I run my business from my home?
Yes, about 20% of new small businesses are
operated from home. Home-based businesses are
subject to many of the laws and regulations as other
businesses. You will need to check your city zoning
regulations or ordinances. The business may also
be subject to local and/or state requirements.

How do I set prices?
Setting pricing can be challenging. The price of a
service or item is based on three basic production
costs: Direct materials, Labor and Overhead. Once
cost has been determined, consider price that is
competitive and profitable. Seeking help from an
expert may be beneficial.

My credit is not good. Can I still get a loan?
Lenders will review all aspects of a loan application including credit
history, which is a reflection of your credit worthiness. It may be difficult
to get a loan from a lending institute until such time you can show that
credit worthiness has been reestablished. Lenders will review the last
2 years of credit history as well as other credit factors.

I filed bankruptcy. Does that hurt my chances for obtaining
a loan? Bankruptcy can have a negative impact on a credit report, which
affects the credit score. This information will be on the credit history from
7-10 years. Work on reestablishing credit as well as credit worthiness,
and build a personal relationship with your current financial institution.

How can I qualify for an SBA loan? Repayment ability from the cash
flow of the business is a primary consideration in the SBA loan decision
process but good character, management capability, collateral, and owner's
equity contribution are also important considerations, All owners of 20 percent
or more are required to personally guarantee SBA loans. For more information,
see: http://www.sba.gov/financing/sbaloan/7a.html

Do I need to have a business plan in order to get a loan?
Yes. When applying for a business loan, lenders will want to see information
about your business and yourself in the form of a business plan. A business
plan provides direction and focus for the business. It can demonstrate that
you have the knowledge, managerial competence and technical capability to
run a business.

What is certification and how do I get it? Certification is an official recognition given to small businesses by certain entities. With certification, a
business can establish that it is woman or minority owned and operated and
can qualify for bid preferences on applicable contracts, Certification can also
establish that you are doing business in certain designated geographical areas.
You may apply for certification with the federal government, state and local
governments and industry. You should call our office for additional information.

How can I finance my business? Committing your own funds is often
the first financing step and is certainly the best indicator of how serious you
are about your business. Risking your own money gives confidence for others
to invest in your business. You may want to consider a partner for additional
financing. Banks are an obvious source of funds. Other loan sources include
commercial finance companies, venture capital firms, local development
companies and life insurance companies. You will need to evaluate your
situation and decide what kind of loan or investment your 're willing to take.

Can the WBC write my business plan? The Women's Business Center
does not write business plans for clients, however, we offer seminars/workshops
on how to write a plan and one-on-one consultation is also available.

Do I need business insurance? Business insurance should be considered
because chances of loss can begin the first day of business. The type
of insurance coverage needed will depend on the specific business operation.
The limit of coverage will depend on the inherent risk of your business.
Consult with an insurance professional for further information.

I want to make food products to sell from my home.
Are there any special regulations? Many governmental agencies are
involved in the regulation of  the food industry. The type of food sold and how
it is prepared or processed will determine which agency has the regulatory
jurisdiction. Consult your local government office regarding licensing and zoning
regulations and your local health department regarding inspection criteria.

What is an Employer Identification Number (EIN)? An EIN is a nine-digit number assigned by the federal government to business entities (i.e., sole proprietors, corporations, partnerships, estates, trusts) for tax filing and reporting purposes. Businesses having employees are required to obtain and EIN along with
N. C. withholding tax number.