1. Can I get a loan with less than perfect credit?

Yes, each application is reviewed on a case by case basis and many non-traditional agencies are able to be more flexible than traditional lenders.

2. Are there charges for the services of AERN partners?

This depends on the agency and the types of services you need. Most agencies will discuss your needs with you without any charge, and will provide a number of services free. Longer-term projects may be provided free or on a cost-shared basis. It is best to address this question with each provider. Generally, workshops or other training have some reasonable charge.

3. Do I need to register my business with the Government?

If you are going to have a name for your business that is different from your full legal name, you will need to register the name in the county in which you will locate your business. This is commonly called a "dba," which stands for “doing business as”. If you plan to be a sole proprietor or use a general partnership as your legal structure your registration should be filed through the County Clerk’s Office. The fee is normally $25 plus $4 or $5 for each certified copy. You will probably need three copies; one for the bank where you will have your business account, one for you, and one for the County Clerk. If you decide to incorporate your business or will have a limited liability partnership, the name is registered with the New York State Department of State, Division of Corporations.

4. I am considering hiring a teenager on a part time basis and would like to know the hours teenagers are allowed to work?

Here is a simple chart showing the permitted hours.

In addition you should know:

Minors under 16 may not work in a factory operations area. They may work in the office area of a factory. Working papers are normally required for those under 18 years of age.
There are jobs minors are not permitted to do such as logging, operation of many kinds of power driven equipment, operation or cleaning of meat slicers, roofing, operation of several kinds of saws, etc.

For more details on the regulations for teenagers, contact the New York State Dept. of Labor, 185 Margaret St., Plattsburgh, NY 12901, 518-563-0430 and ask for a copy of the booklet “Laws Governing the Employment of Minors”. This 46-page booklet is easy to understand and covers everything from employment certificates to Unemployment Insurance.

5. Can I require my employees to stay on the premises during lunch? Sometimes an emergency arises and we need them quickly.

Not if their lunch is unpaid. According to New York State Law, employees are entitled to an uninterrupted 30 minute (minimum) meal period. In most cases you don’t have to pay them for this time. However, in a recent federal case, an employer was ruled to be in violation of the Fair Labor Standards Act because they required the employees to wear pagers and their tools during their unpaid lunch breaks. These employees were actually allowed to leave the premises but were on call during their lunch. The court ruled the employer should have paid the employees for their meal periods and awarded them back wages. They said the meal period was unpaid personal time and the employees should have been able to use the time for their own purposes.

Employees must be given a 30 minute meal period if:

The employee works a shift of more than four hours that starts before 11 a.m. and ends after 2 p.m.
This meal period must be between the hours of 11 a.m. and 2 p.m. Or:

The employee works six hours or more. This period should be midway between the beginning and end of the shift.

6. How much money can I expect to be able to borrow?

The sources for money to start a business are in this order, based on national survey,

1. Your own savings
2. Your family
3. Your friends
4. Lenders

Lenders most often require a written business plan and supporting financial information. The amount you will be able to borrow is dependent upon your justified need, as detailed in your business plan.

7. Are there any grants available to assist in business start up or expansion?

Unless your business involves the development of new technology, or is a non-profit organization, it is difficult to find a grant to start or expand a business. There are generally no grants available for business start up. Even though many publications and talk shows publicize grants to small businesses, there is only one grant available and that is for research and development for technology-based products and services for the government. There is no federal grant money for individual business owners. If you are looking for funding for an existing or new for-profit business, you may encounter difficulties in finding and getting grant funding. Government grants are generally (though not always) given to non-profit organizations for programs and services that benefit the community or public at large. Many non-government organizations provide grant funds, but most of them have specific requirements as to who is eligible to apply for and receive grant funding. By and large, foundations do not make grants to for-profit enterprises.

8. Are there any special programs to assist women-owned businesses?

The SBA Small Business Loan Prequalification Program is designed to assist all small business and “new markets” in particular with the small business loan application process. New markets are those segments of the small business community that traditionally may have been underserved by the lending community. Such markets include women, veterans, minorities, rural businesses, and exporters. The program allows you the opportunity to apply for an SBA guaranty commitment letter which can then be used to “shop” the prequalified loan to lenders interested in making SBA guaranteed loans. The program allows for a maximum SBA guaranty of 80 percent for loans up to $100,000 and 75 percent for loans above $100,000.

Another program designed to benefit women-owned businesses is New York State’s Woman Business Enterprise (WBE) certification program. WBE certification affords a business the opportunity to be listed in a statewide Directory of Certified Minority and Women-owned Business Enterprises used by state agencies and contractors. Because State Government has been mandated by the Governor and the Legislature to provide greater opportunity for participation by Minority and Women’s Business Enterprise (MBE/WBE) in state contracting, certification gives business owners an advantage when marketing goods and/or services to state agencies and authorities. Certification also allows a business the advantage of accessing a variety of loans and bonding programs as well as programs that provide technical assistance.

9. How much personal investment will be required for me to secure financing to start my own business?

As a general rule of thumb, commercial banks look for 30% to 40% of the cost of your project in cash and equity or collateral. When you work with certain SBA guaranty programs or some micro-loan programs, only a 10% to 15% investment will be required. It will be difficult, if not impossible, to receive financing with no personal investment.