Category Archives: Finance

Introducing edg3 FUND 2020.

Edg3 Fund 2020.jpg

Kitsap Bank’s edg3 FUND is back and better than ever with more prizes and additional benefits!
This small business competition is for entrepreneurs dedicated to growing their community
economically, socially and environmentally. And in 2020, the competition will also recognize small
businesses that have demonstrated innovation and resiliency during the COVID-19 pandemic.

Prizes –

  • $25,000 edg3 FUND Grand Prize Winner
  • $10,000 Innovation Award
  • $5,000 #causegood Community edg3 Award
  • $5,000 Public Favorite Award

2020 edg3 FUND Timeline –

  • Nomination Period: August 3 – 31
  • Application Period: August 15 – September 15
  • Finalists Announced: October 1
  • Finalist Pitches/Interviews: October 2 – 23
  • Public Vote: October 26 – November 6
  • Winners Announced: November 20

Please note, this is not a needs-based competition; recipients are selected based upon how well they meet the competition criteria. Must be a for-profit business based in Western Washington. All businesses must comply with federal and state laws. Entities that are tax-exempt organizations, non-profits, or charitable trusts are not eligible to participate. Businesses may self-nominate.

Nominate ( Yourself? ) Today

Things You Should Know About the Paycheck Protection Program (PPP)

SBA and Treasury Announce New EZ & Revised Full Forgiveness Applications for the Paycheck Protection Program

Today, the U.S. Small Business Administration, in consultation with the Department of the Treasury, posted a revised, borrower-friendly Paycheck Protection Program (PPP) loan forgiveness applicationimplementing the PPP Flexibility Act of 2020, signed into law by President Trump on June 5, 2020. In addition to revising the full forgiveness application, SBA also published a new EZ version of the forgiveness application that applies to borrowers that:

  • Are self-employed and have no employees; OR
  • Did not reduce the salaries or wages of their employees by more than 25%, and did not reduce the number or hours of their employees; OR
  • Experienced reductions in business activity as a result of health directives related to COVID-19, and did not reduce the salaries or wages of their employees by more than 25%.

The EZ application requires fewer calculations and less documentation for eligible borrowers. Details regarding the applicability of these provisions are available in the instructions to the new EZ application form. 

Also see SBA Finally Clarifies PPP Loan Forgiveness Rules: Full Forgiveness For Self-Employed Borrowers

New information about PPP forgiveness — and EIDL reopens.

Keep an eye on the Kitsap Economic Development Alliance blog for breaking news about changes in COVID recovery programs. 

Newest Posts:

Risk and Reward in Business Valuations

by Kelly Deis of SoundPoint Consulting

In its simplest form, the value of a business can be boiled down to just two components: risk and reward.
Although a significant amount of thought and rigor is required to determine the value of a specific business, the underlying concept remains the same: the value of a business is equal to the economic benefit (earnings or cash flow) that it generates divided by the risk it takes to generate those benefits.
Value = Earnings (or Cash Flow)
 Risk
Think of it this way. If two companies generate the same amount of cash, which one is more attractive (valuable) to investors?
  1. a Fortune 500 company in business for 35 years with revenues locked in for the next 5 years
  2. a start-up with an untested management team, dubious business plan and volatile revenue stream
Of course, the right answer is 1).
So, while earnings are important, don’t forget to focus on risk as well. They both play an important part in the value equation.

Continue reading

Is an SBA loan right for you?

SBA loan

If you’re starting or growing your small business, you should learn about loans guaranteed by the U.S. Small Business Administration (SBA) as a funding option.

If you apply for an SBA loan, your loan won’t be from the SBA, and you won’t make your payments to the agency. Instead, the SBA approves lenders to provide loans to small businesses under their loan programs. Continue reading

Myths and Facts About Grants for “For-Profit” Business

“How can I get grant money to start a for-profit business?”

This is the number one funding related question that Small Business Administration, other government agencies and financial institutions encounter from potential entrepreneurs seeking money to start a business.

The infomercials on late night television selling books or offering free seminars appear to be very convincing. I have spent hours investigating myths and facts about grants. Here are the findings:

Myths about Grants for “For-Profit” Business:

As part of the research on grants, I attended a few different seminars that were held by privately owned organizations at some of the major hotels. Continue reading

Nine Ways to Fund Your Business

by Kelly Deis of SoundPoint Consulting

If you don’t have the capital to fund your business growth, here are a few ideas. Which one is right for you?

1. Bank Loan or Line of Credit

Borrowing from the bank is probably the most traditional way of funding a business. This can take the form of a traditional loan or line of credit. Some banks may require an SBA guarantee which is a little more expensive than a bank-only loan. Others may require covenants, or conditions, within which the business must perform.

Bankers will review your historical performance and business plan in great detail. Assuming that these pass muster, the bank will require collateral in the form of inventory, equipment or even your house. In many cases they will insist on a personal guarantee.

Bank loans are debt financing requiring periodic payment of principal and interest. However, they do not require you to give up equity in your business; if your business takes off, you keep the profits (after debt repayment). Continue reading

Measure it to improve it.

by Kelly Deis of SoundPoint Consulting

As with many things in life – where we place our attention is what will change. But, if you try to focus on too many things at once, nothing gets done. The same is true for monitoring your business’ financial performance.

Monitor and focus your attention on those few key metrics that drive your business’ health through a dashboard tailored to your needs.

A good dashboard – often no more than one page, is a powerful visual of graphs and other data that provide a snapshot of the key components of your business. It monitors trends and tracks performance against goals, providing the ability to course-correct mid-year.

A customized monthly dashboard should focus on the key drivers of your business and help you quickly and easily assess the health and trajectory of your company. Here’s how: Continue reading

Should you use crowdfunding to help finance your business?

Should You Use Crowdfunding to Help Finance Your Business?

Starting a small business can be costly, but did you know that you can use crowdfunding to help alleviate some of those costs?

Our latest infographic, “Is Crowdfunding Right for Your Small Business?,” shows what types of crowdfunding are available and the different benefits of each.

In 2018, the United States alone raised $1,038,000 in crowdfunding. This amount is expected to show an annual growth rate of 10.4%, resulting in a total amount raised of $1,298,000 by the year 2022. From a global perspective, that amount is even higher – China raised $7,463,000 in 2018!

What Types of Crowdfunding Are There?

There are three types of crowdfunding options available for your business: reward-based, equity, and debt.

Continue reading