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October 29, 2010 in City
Local agency helps small businesses with loans
Robert Flora, of Creative Surface Inspirations, puts the finishing touches on the floor of a unit at Garage Town USA in Coeur d’Alene on Thursday. Creative Surface Inspirations, which does concrete floors and surfaces, received a $22,000 SNAP Financial Access loan to buy a new truck.
(Full-size photo)
Kay Kallenbach can’t say enough good things about SNAP Financial Access.
The nonprofit community development financial institution gave Kallenbach more than a business loan when nobody else would; it gave her life purpose after her daughter died a few years ago.
“It was the most wonderful thing that has ever happened to me,” Kallenbach said of the loan. “I was in a very bad situation. I had lost my source of income and SNAP worked to get me a loan to buy a business.”
SNAP Financial Access – a subsidiary of SNAP, the nonprofit community action agency – will help a lot more folks like Kallenbach thanks to a recent federal loan and grant from the U.S. Small Business Administration.
The $200,000 SBA loan in turn can be lent to more Spokane County microenterprises, creating jobs for low- and moderate-income entrepreneurs.
At a time when traditional lending institutions are keeping a tight fist on credit, Financial Access is authorized to provide loans of up to $35,000.
“We are concerned about credit, too, but not the same way as a bank,” said Kerri Rodkey, director of SNAP Financial Access. “We look at the mission and benefit to low-income people.”
In addition, the nonprofit agency also was awarded an SBA grant of about $158,000 under the federal Program for Investment in MicroEntrepreneurs Act to provide training and technical assistance to disadvantaged business owners.
The grant also will provide help to businesses owned by minorities and women, Rodkey said.
So far this year, it has provided training and technical assistance to 259 existing or prospective business owners and made loans to 24 business owners, resulting in 55 business starts or expansions and 59 new jobs.
Since 1998 when the microenterprise program began, SNAP Financial Access has provided $1.6 million in loans to 146 borrowers.
It has partnered with Numerica and The Union credit unions, among other institutions, to make loans to stores, restaurants, building contractors, truckers, auto mechanics and hair salons.
One such borrower was Creative Surface Inspirations, 3012 N. Sullivan Road in Spokane Valley.
This year, the small concrete company used a $22,000 SNAP loan to buy a truck, which made it possible for the business to branch out into floor and surface polishing. The truck is used to transport four 1,000-pound polishing machines and two new employees to run them.
“We have doubled our sales from last year,” said Kat Mitchell, a principal in the company, which recently picked up a new floor-polishing client, Walmart in Wenatchee.
Mitchell said no other bank would loan Creative Surface Inspirations money because the company was only 2 years old. Now, she said, a credit union has bought the loan, expanding the company’s credit potential and freeing up more money for other SNAP loans.
A couple years ago, SNAP Financial Access made all the difference in the world to Kallenbach, now 67, who lost her income as a caregiver when her daughter died of complications from cancer.
“The bank didn’t want to give me a loan,” Kallenbach said.
But SNAP loaned her $36,000 to take over Spencer’s Antiques Market and Village Flea Market, which provides space to dealers in antiques and collectibles.
When she took over the business on North Market Street, Kallenbach had 12 dealers. Now, relocated at 1325 N. Division St., the business boasts 72 dealers.
“It was just me back then,” Kallenbach said. “Now I have one full-time and three part-time employees.”
She said there is no limit to what her business is capable of accomplishing.
“I am so very grateful to SNAP,” Kallenbach said. “They believed in me and gave me a chance.”
Rights panel poorly understood 
bvml on October 29 at 4:17 a.m.
SNAP is a great resource. Not only are they running the program that this article is about, they also
=== Provide energy assistance
=== Manage public housing programs for homeless, elderly and other disadvantaged folks
=== Provide money management skills to folks thru the Finacial Access program; that lets people with credit/bank problems have a second chance and obtain a bank account
The list goes on and on, but I see that SNAP is much more helpful than lots of city departments!
liarsinnews on October 29 at 9:51 a.m.
I got a kick out of Obama this past week trying to blind fold the public saying he is going to help small business with income tax rate deductions. For gosh sakes, doesn`t the president know you have to make a profit to enjoy a income tax break. Space to earth, for the most part small businesses are not making profits. More digested food through the bull.
johnclarke on October 29 at 10:35 a.m.
Well then Dick, better to not do anything then? - and since the Republicans have blocked previous attempts to help small business - maybe they would agree to a tax break? Probably not. And…”for the most part small business are not making profits” ? Really ? Says who ?
lewis8457 on October 29 at 12:00 p.m.
if small business is making profits why aren’t they hiring? why is 30% of our population unemployed or making low wages?
thank god for SNAP, they are one organization we can count on.
Erik_T on October 29 at 10:51 p.m.
I am making profits; however, I cannot afford to pay the 18-30% employee benefits package, above and beyond the base wage.
My industry is 100% commission based for the most part as well.
People want the “safety” of an hourly wage, this is something I also cannot provide. I find that most people want an easy paycheck, instead of putting in the effort and perceverance needed to help my business grow. Why would I want to employ people whom do not have the vision and drive I have? I do not want to be an adult babysitter. When times are tough economically, the “tough get going”, and choose to work harder to meet the same financial goals in less hard times. I have not found this to be the case for most of the unemployed whom have come to me in search of work.
Most local business owners feel the same. In fact, most have reduced staff, and started working harder themselves. (ie. some home builders are now strapping on the tool belts themselves, instead of employing sub’s/employee’s)
I know some of the folks that head up SNAP; they and everyone associated with SNAP are the salt of the earth.