What Black Friday means to small businesses
Black Friday is not just for big box stores. That crazy shopping experience the day after Thanksgiving provides a huge opportunity for small businesses, as well.
According to the International Council of Shopping Centers, Black Friday has routinely been the busiest shopping day of the year in the United States since 2005, and small businesses contribute in a big way.
While the earliest reference to Black Friday traces back to 1961 when Philadelphia police used the term to describe the heavy traffic and disruptive pedestrians on the day after Thanksgiving, it has come to mean the point in the year when retailers begin to turn a profit, going from being "in the red" to being "in the black.”
In a recent holiday spending report, consultants at Deloitte found that $200 billion in market share was being traded to smaller businesses, away from the top 25 publicly traded retailers, which includes Amazon and Walmart.
According to the U.S. Small Business Administration (SBA), small businesses represent 99.7 percent of all employer firms. Since 1995, small businesses have generated 64 percent of new jobs, and paid 44 percent of the total US private payroll.
Growth in the small business sector can be attributed to community banks like Peoples Bank & Trust Co. in Edmond, according to Chief Lending Officer Travis Rogers.
“From starting up or expanding your business, we can help you get there,” said Ben Branson, president at Peoples Bank & Trust Co. of Edmond. “Supporting and growing small business should be a priority in any community that wants to remain vibrant and relevant.”
Peoples Bank & Trust Co. has ranked among the top 10 banks in Oklahoma for SBA funding and has received SBA Express and Preferred lending status with the SBA. This status allows them to streamline decisions on applicable credit requests and reduce the time to closing for small businesses.
“We became more involved with the SBA after the recession when they were offering special programs to aid in the economic recovery,” Branson said. “We are proud to say that we had a part in creating and maintaining jobs and adding to the economic growth. We continue to make this a major objective in our business model.”
Branson said it’s part of the bank’s heritage. The bank's founder began his career as a pharmacist and small business owner who provided opportunities for small businesses, farms and ranches, education, home and land purchases.
How do SBA loans work?
According to SBA. gov, SBA doesn’t make direct loans to entrepreneurs to start or grow a business. Instead, it provides a guarantee to banks and lenders for the money they lend to small businesses owners. This guarantee protects the lenders' interests by promising to pay a portion of the loan back if the business owner defaults on the loan. So when a business applies for an SBA loan, it is actually applying for a commercial loan through a bank or authorized SBA lender, structured according to SBA requirements with an SBA guarantee.
The bank offers loans in three different programs: SBA 7(A) Loan Program, 504 Loan Program, and SBA Express.
The SBA Express program features accelerated turnaround time for SBA response on loans up to $350,000. Terms are based on use of loan proceeds.
The SBA 7(A) Loan Program features longterm financing for most business purposes, including the purchase of real estate, equipment, business acquisition, refinancing and working capital. This program provides for loans up to $5 million, with terms based on the use of loan proceeds.
The 504 Loan Program provides SBA direct permanent financing for real estate purchases, completed construction or machinery and equipment purchases. It features low fixed interest rates, long terms and low borrower equity. It offers loans up to $12.5 million.
Peoples Bank & Trust Co. was begun in 1906 by M.H. Barrett Sr. in Ryan, Oklahoma. Now, more than 100 years later, the bank is still owned and operated by the Barrett family — Kay Barrett Branson and her son Ben Branson, who also serves as president, CEO and chairman of the board.
If you want to learn more about Small Business Administration loans, Peoples Bank & Trust Co. of Edmond is your bank. For more information, call 405531-9420, visit Peoples Bank at 2400 NW 178, or go to www.PeoplesBankUSA.com.
We became more involved with the SBA after the recession when they were offering special programs to aid in the economic recovery. We are proud to say that we had a part in creating and maintaining jobs and adding to the economic growth. We continue to make this a major objective in our business model.”
Ben Branson, president at Peoples Bank & Trust Co. of Edmond
This article is sponsored by Peoples Bank & Trust of Edmond, Member FDIC