Financing topic of small business workshop

2010-08-12T02:01:11Z

Small business owners from the Sacramento area gathered Wednesday at the U.S. Small Business Administration office in Citrus Heights for a workshop organized by U.S. Rep. Doris Matsui's office.

For two hours, more than 30 business owners such as Michael Kyalwazi met with representatives from a dozen lenders and resource organizations. Entrepreneurs like him were drawn there for one thing: finding financing in this troubled economy.

"It's sad so much money is flying out there but it's not reaching small businesses, which are the engine that drives the economy," he said.

Kyalwazi worked his way up the ladder at La Bou Bakery & Cafe. He started as a floor sweeper and, over 20 years, became regional manager for 32 La Bou stores. Now he operates three coffee shops under the name Café Le Monde.

His businesses have been successful enough that he'd like to open more. But he's had trouble getting banks to lend him money — especially because his first three businesses all operate in contract locations at McClellan Park and two medical buildings in Sacramento and Natomas.

In contract locations, expenses are all up front, but payment is often very slow. Like others at the workshop, Kyalwazi was searching for lenders to extend credit for times when he's cash-poor, said Jim O'Neal, district director of the SBA's Sacramento district office.

"That is the biggest impediment to small businesses right now – lack of access to flexible lines of credit," O'Neal said. "That's what every small business is screaming about right now."

Kyalwazi and other business owners met with representatives from banks, credit unions and loan guarantee agencies to learn how to make their businesses competitive for financing. They also got information about services available through the SBA, Sacramento Works, SCORE and the Sierra Business Council's Sierra Economic Development Corp.

Some, like contractor Geoff McCain of GMC Contracting in Sacramento, said they were just trying to tread water while leading their businesses through transitions. McCain, who once made a living building new homes and remodeling others, is working his way into the solar industry.

"I'm in a dangerous situation," he said while talking to loan officers and business banking specialists from Wells Fargo. “If something doesn't turn, it's going to fall apart.”

City cracks down on code violations

2009-08-19T05:13:07Z

Sacramento City Councilwoman Lauren Hammond did not like what she read on the list.

At Tuesday night’s City Council meeting, Hammond was scanning a list of property owners that owe the city money for fees and fines related to housing code violations.

“There are so many bank-owned properties on this list,” Hammond said.

Banks that have not paid the city for violations at properties include heavy-hitters such as Wells Fargo Bank, Wachovia Bank and Bank of New York. Many properties owned by individuals are also on the city's list.

The city needs to examine how it can require banks to take care of properties in the same way that real estate agents do, she said.

The City Council approved liens on 250 properties for code violations Tuesday. The total amount of the liens is about $500,000.

Kathleen Haley is a staff reporter for The Sacramento Press.

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Financing topic of small business workshop

City cracks down on code violations