Frequently Asked Questions

How do I get a business loan?

What are the basic skills I need to run a business?

What kind of registration and licenses are generally required to start my business?

Do I have to be in business to use the services of the Small Business Development Center?

What is it that you (SBDC) do?

Do I need a lawyer to start a business?

What form of business do you recommend for a new business?

Are there any "Grants" or Start-Up money available for my start-up business?

What are your hours of operation?

Q. How do I get a business loan?

A. The kind of financing most entrepreneurs seek through commercial lenders is debt financing. Most banks provide debt financing for existing and start-up businesses. Banks vary substantially in their lending practices. While one bank may decline your loan application, another may be willing to take a higher risk or be interested in lending to small businesses. It is advisable to understand a bank’s lending guidelines before applying for a loan. The general guidelines that would enable a lending officer to at least make an informed decision regarding your loan proposal are as follows:

Consideration of the Business Idea, usually explained in a Business Plan

Collateral

Down Payment (or equity in an ongoing business)

Credit history and personal financial net worth

Management ability

Ability to repay the debt

Conditions of the economy and/or market area

Q. What are the basic skills I need to run a business?

A. The basic survival skills include a working knowledge of record keeping; financial management; personnel management; market analysis; break-even analysis; product or service knowledge; federal, state and local tax knowledge; legal structures; and communication skills.

Q. What kind of registration and licenses are generally required to start my business?

A. Obviously, there are specific requirements in each state, county and locality, but it is possible to list the kinds of basic licenses and registrations a new business will need:

Local A business license from city, town or county, depending on your location, will usually be necessary. In addition, you’ll have to meet zoning laws, building codes, and similar regulations.

State In most states if your business isn’t a corporation and your full name isn’t in the name of the business) you’ll have to register under what’s called a Trade Name Registration. You should also file for a Sales and Use tax number in some lines of business (like liquor stores, construction, barber shops, real estate offices) specific licenses are needed.*

Federal You may need an Employer’s Identification Number (EIN)

Q. Do I have to be in business to use the services of the Small Business Development Center?

A. No. You only have to be considering the idea of opening a business or researching the feasibility of a proposed profit making venture.

Q. What is it that you (SBDC) do?

A. The Small Business Development Center program provides low- or no-cost guidance and training in proven management fundamentals helping small business owners and potential owners make sound decisions for the successful operation of their business. Part of a statewide network supported by the SBA and the Maryland Department of Business and Economic Development, the Southern Maryland SBDC serves businesses through individual, one-on-one, confidential counseling, group training, and the use of the extensive resources in our Business Assistance Center which includes the entire 200 volume EntrepreneurGroup’s Business Start-up Guides. Training programs are nominally priced to serve the small-business community.

Q. Do I need a lawyer to start a business?

A. No, but it’s wise to get the best advice possible when you’re starting out. An attorney is one source of the expertise you’ll need to draw on. In some states you need an attorney to form a corporation. Check your state law.

Q. What form of business do you recommend for a new business?

A. Each form, sole proprietorship, partnership, or corporation, has its advantages and disadvantages. The one you should pick depends on your circumstances, including:

Your financial condition

The line of business you’re entering

The number of employees

The risk involved

Your tax situation

Q. Are there any "Grants" available for my start-up business?

A. Generally speaking, grants given to business start-ups are very rare. An exception may be for a high technology type business or for businesses producing products that can be used by certain agencies or departments involved in our nation’s defense.

Q. What are your hours of operation?

A. The Southern Maryland Small Business Development Center’s normal hours of operation are from 9:00 a.m. to 5:00 p.m., Monday - Friday. Of course, you’re able to access our homepage and its resource applications 24 hours a day, seven days a week.

This material is based upon work supported by the U.S. Small Business Administration under Cooperative Agreement # 4-7770-0021-07. Any opinions, findings, conclusions or recommendations expressed in the publication are those of the author and do not necessarily reflect the views of the U.S. Small Business Administration. All services and programs are provided on a non-discriminatory basis.