Issue link: https://nebusinessmedia.uberflip.com/i/518148
W W W. M A I N E B I Z . B I Z 19 J U N E 1 , 2 0 1 5 F ield Rider, president of Pine Tree State CDC, a Portland- based nonprofi t certifi ed by the U.S. Small Business Administration to provide fi nancing under its 504 loan program, knows how important cash fl ow is to small business own- ers seeking fi nancing to grow their companies. If too much up-front cash is required to get the loan, he says, it sometimes reduces the working capital cushion they'll need to easily manage their short-term debts and operational requirements. " e big lesson I learned was just how important cash fl ow is to most small businesses," Rider says of his almost two decades as a bank lender, director of the business assistance division of the Finance Authority of Maine, C-level positions with two Lewiston-Auburn region businesses and as senior loan and investment offi cer (a position he still holds) with BDC Capital, the oldest busi- ness development corporation in the United States. ose diverse experi- ences are now coming together at his three-year-old company, which besides off ering SBA 504 funding, also provides access to lines of credit; term loans; senior short- or long-term debt; subordinated debt; and mezza- nine or private equity fi nancing. While each option has its merits, he says, the SBA's 504 loan program is particularly well suited for start-ups and established businesses looking to grow and to acquire assets such as real estate, machinery and equipment. at's because its comparatively low 10% down payment requirement helps those bor- rowers preserve cash for working capital. "It's meant to be a job-creation pro- gram," he says. " e way it gets there is by reducing the amount of working capital that an expanding business has to put into fi xed assets." 14_261_3131. oo George Casey Discover what thousands of CEOs already know. Vistage works. Get answers. Take action. Like you, the members of a Vistage Advisory Board are proven business leaders and critical thinkers. They have smart ideas and insightful opinions and this is the forum to express them. At our monthly meetings, you'll encounter lively discussions where business leaders tell it like it is. If you are a CEO, key executive or business owner who is interested in finding out more about our Vistage group in Southern Maine, call 207.869.5491 or visit vistage.com/portlandme. P H O T O / T I M G R E E N WAY Leveraging loans SBA's 504 program helps small businesses grow, while preserving cash flow B y J a m e s M c c a r t h y C O N T I N U E D O N F O L L OW I N G PA G E ยป Pine Tree State CDC 120 Exchange St., Portland, Suite 205 Services: SBA 504 loans and other types of financing, including lines of credit, term loans, senior short- or long-term debt, subordi- nated debt, and mezzanine or private equity financing Owner/president: Field Rider SBA 504 portfolio in Maine: More than $25 million, with recent transfer of Coastal Enterprises Inc.'s $18 million SBA 504 portfolio involving nearly 80 separate loan accounts. Contact: (207) 773-3104 www.pinetreestatecdc.com F O C U S Field Rider of Pine Tree State CDC, pictured near his offi ce in Portland, cites the importance of business cash fl ow.