Sarah Halpern
President and CEO of the Business Consortium Fund (BCF) and Triad Investments. Here's a summary of the key points discussed:
🎙️ Episode Highlights 🌟 About BCF and CDFIs
- BCF is a nonprofit lender and a Community Development Financial Institution (CDFI).
- CDFIs are designated by the U.S. Department of the Treasury and exist to serve underserved communities.
- There are about 2,000 CDFIs across the U.S., working in small business and affordable housing sectors.
💼 Mission and Services
- BCF provides capital and support to minority-owned businesses, especially those with B2B models.
- They focus on relationship-based lending, helping clients through business cycles rather than writing off loans quickly.
- Since 1987, BCF has originated $228 million in loans and financed 950 minority business enterprises.
🧭 Application Process
- Applicants need to provide:
- Three years of tax returns
- Credit score
- Bank statements
- Cash flow analysis
- BCF emphasizes transparency and trust in the application process.
💡 Financial Advice for Entrepreneurs
- Know your industry – Understand the specific requirements of the sector you serve.
- Know your credit score – Monitor and improve it as needed.
- Don’t take on debt you can’t repay – Ensure your business cash flow can support loan repayment.
🤝 Community Engagement
- BCF relies heavily on word of mouth and community trust.
- They encourage early relationship-building, even before financing is needed.
📍 Location and Access
- BCF is physically based in New York but lends nationwide.
- Website: bcfcapital.com
#SHMS #STRAW #BEST
Steve Harvey Morning Show Online: http://www.steveharveyfm.com/
See omnystudio.com/listener for privacy information.
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Hi.
Speaker 2 (00:00):
I am Rashan McDonald, a host of weekly Money Making
Conversation Masterclass show. The interviews and information that this show
provides are for everyone. It's time to stop reading other
people's success stories and start living your own. If you
want to be a guest on my show, please visit
our website, Moneymakingconversations dot com and click to be a
guest button Chris submit and information will come directly to me.
Speaker 3 (00:24):
Now let's get this show started. My guest is Sarah Harbin.
Speaker 2 (00:28):
She is the president the chief executive officer of their
Business Consortium Fund and TRYAD Investments. She has created innovative
and responsive lending programs throughout her career and community development finance.
She's responsible for the driving BCF towards greater impact and
the communities we serve by expanding capital reach to business
owners of color since nineteen eighty seven. Now, since she's
(00:51):
been there since nineteen eighty seven, BCF has originated two
hundred and twenty eight million dollars in loans and financed
nine hundred and fifty minority business in as our mbes.
Please welcome to Mind Making Conversations Master Class. Sarah Holpm,
how are you doing Sarah.
Speaker 1 (01:06):
I'm doing great. Thanks for having me.
Speaker 3 (01:08):
I tell you I have been waiting on this call.
Speaker 2 (01:10):
We met at the financial Summit and we hit it
off because we were.
Speaker 3 (01:15):
Like minded people. But it was at the end of
the day and we got this done.
Speaker 2 (01:18):
You had to fly back and I said, well, can
I get you on my show to talk about what
you do? So let's kick it off and just educate
my audience on exactly what do you do when your
company does at BCF.
Speaker 1 (01:28):
Yeah, absolutely, thanks for this opportunity. BCF is a non
profit lender. We are a community development financial institution and
we exist to serve We're not a bank. What makes
us different from a bank is that we provide loans,
but we work with our borrowers very closely to ensure success.
(01:50):
And where when a bank has a client who runs
into any trouble or you know, has trouble repaying the loan,
they are forced to write it off pretty quickly, but
CDFIs like BCF are not required to do that. We
will work with our client to ensure that that client
(02:10):
can repay and that the client can really move on
to experience growth and success as an enterprise.
Speaker 3 (02:18):
Yeah.
Speaker 2 (02:19):
So now this is the first time I've heard of
a community developed financial institution. Are they locating in certain
parts of the country and they are located in every state?
Tell me a little bit more background in the history
of these.
Speaker 1 (02:30):
Yes, so, community development financial Institutions or CDFIs are located
across the country. There are about two thousand of us
around the country, and I think that we are one
of the best kept secrets, and we should no longer
be a secret. We are actually designated by the US
Department of the Treasury. We receive money from banks and nonprofits,
(02:55):
and about half of us work in a small business
space and half of us work in the affordable housing space.
Everything we do is to lift up communities and to
help a community thrive and grow.
Speaker 2 (03:07):
Okay, now this is of course it gets exciting because
you're saying that people who come to you, it's more
like a partnership. You know, you're trying to first of all,
provide revenue or capital so they can fund their business.
But also you're not as quick to like pull the
rug out from underneath them if it doesn't go as
it as planned. How do you assist these potential applicants
(03:29):
A loan of people who've been secured loans to get
over those rocky moments in their business.
Speaker 1 (03:34):
Sarah, Yeah, absolutely so, as as as you and some
of your audience might know, there is certainly a great
deal of perhaps reluctance and wariness in communities of color
to engage in financial systems. And it's you know, it's
not without good reason. There has been discrimination. There has there,
(03:57):
you know, and there and it still exists. And so
a lot of our clients are coming to us really
for the first time. Even as successful a business person
as they may be, they may be engaging in the
financial market for the first time, and there is a
lot of education that needs to take place to ensure
that that person is set up for success, to be
(04:17):
able to repay the loan, to be able to grow
business and repay the loan. And so we set up
that trusting partnership from the get go. We want to
know everything about our clients. We want to help them
through the rocky beginning often and then towards success. But
every business experiences ups and downs with a business cycle,
(04:39):
whether it be like supply chain shocks that happened during
the pandemic, all businesses experience ups and downs. And because
we have established that relationship of trust. Our clients are
willing to talk to us about what they need and
how we can help them throughout their business cycles.
Speaker 2 (05:00):
And Sarah Halpin, she's the president and CEO of the
Business Consortium Fund and try an Investments to BCF. I
met her at a financial summit and at that's financial
summer she was meeting individuals who will come in there
and the seeking advice or seeking opportunities, seeking ways that
they can grow their business or how they can be
advised to grow their business.
Speaker 1 (05:21):
Now, this location is based where we have physical offices
in New York, but we lend nationwide. We lend primarily
to businesses operate who are who have a B to
B model, So a business providing a good or service
to another business, and in that business, there was likely
to be a contract, right, a contract between your small
(05:43):
business and the local government, or your small business and Walmart.
And that's where we come in to help these small
businesses make good on their contracts, to help them hire
the people, buy the materials, and whatever it is they
need to deliver on their contract.
Speaker 2 (06:04):
You know, people, all people drop in and out at
different times of the show.
Speaker 3 (06:07):
At this time of the show.
Speaker 2 (06:08):
Can you tell people how they can reach out and
find more information about you know, BCF and what you
guys are doing for the community, the outreach and the
opportunities to get capital for their businesses.
Speaker 1 (06:22):
It's so easy. All anybody would need to do is
go to b cfcapital dot com. That's b AS in business,
see us in consortium and f as and fund bcfcapital
dot com and apply for a loan there or simply
put in your information and one of our lending staff
will reach out to you. And the great thing about
(06:44):
BCF we are community led. We are people who understand
what the needs of the small business owner are and
we'll be you know, standing by, ready to respond and
to to help you out.
Speaker 3 (06:58):
Great.
Speaker 2 (06:58):
Well, this this is great now. I always I'd always
like to get a little background on individuals, because you
seem to be passionate about this. It seems to be
something that you bonded to. Does your background lend yourself
to this? Can you educate my audience on a little
bit about how you started in the financial community before
I go into the more questions and dan led and
how did you wind up at BCF.
Speaker 1 (07:20):
Yeah, well, I never thought I was going to have
a career in financial services, I'll just start there. But
the way that I got there is as as like
a little girl. I always understood that where I was
born and the opportunities I had had so much to
do with luck. And part of that is my mother
(07:44):
came to the United States from Trinidad and Tobago when
she was in her early twenties and she was trying
to flee from a pretty bad situation. And she got
to the United States and met my dad and she
was able to who have and make a life for
herself because people helped her along the way. And that
(08:09):
that's how I understood that without people helping each other,
I mean, I wouldn't be here, my mother wouldn't be here.
And I started doing work in human rights, and that
took me to economic one. In being interested in economic development,
I actually worked at Charles Schwab for fifteen years. I
(08:29):
never thought I'd work for a bank for that long,
but when I was there, guess what I was doing,
or Sean, I was making loans to CDFI's like, wow,
why I did that for fifteen years before I got
to lead this company.
Speaker 2 (08:42):
Yeah, we know the beauty about your conversation is that
it's about opportunity. And what I try to do on
my show is I find so many people who are
feeled with doubt. So many people are filled with disbelief
that what people say isn't real, what people the work.
I think that what we especially in the minority community,
(09:03):
is that nothing's ever easy. You know, I wish you
could just fill out a single piece of paper and
your dreams would come true. How what is the process
of walking through the front door and the paperwork that
one would have to fill out all the background because
do you have to have fantastic credit? I don't want
to start too far into the conversation, but can you
(09:23):
walk us through the process of sitting down or contacting
cd A, cd IFI in this case BCF, which is
business consorting fund and try and investments.
Speaker 1 (09:34):
So the first thing I would say is put your
fear in your self doubts, you know, put them aside
before you walk in the door. Put aside your preconceived notions,
and also put aside your maybe desire to put everything
in the best light. Because when it comes to capital provision,
(09:57):
we need to really know you, and that means knowing
your strength and your weaknesses as a business owner, because
we want to help and we do what we do
look for paperwork. We want three years of tax returns.
We do look at your credit score, we do look
at your business success. We do look at your bank
statements and your cash flow. And the reason we do
(10:18):
that is we want to make sure that any loan
that we provide is a path to growth and that
it's not another headache for a small business loaner. Imagine
a predatory lender. They don't care, right, They're just gonna
They're just gonna give you money until you pay it back,
and if you don't, there's serious consequences for us. Yeah,
we want, we want you to pay the money back,
(10:39):
but we want to help you understand how you pay
the money back and how this loan and how this
capital leads to growth for your company. So it's paperwork,
But don't be afraid, that's what I would say.
Speaker 3 (10:51):
Well, you know, that's that's the key. Fear. Where how are.
Speaker 2 (10:54):
The decisions on interest made on the loans that you're giving.
Speaker 1 (11:00):
Yes, one of the barriers is affordable capital. Yes, one
of the barriers to success is affordable capital. But many
of us have really solid bank partners who have extended
money to us at low rates. We borrow money from
a bank. This is how it works. We borrow the
money and then we put an interest. We add a
(11:21):
little interest to the money. We have to pay back
to the bank, and that's we charge the client so
that we can cover our own costs and that we
can also pay the bank back.
Speaker 2 (11:30):
Well, we're about to go to break. Be right back
with the incredible Sarah Howpum. She is the president and
CEO of the Business Consorting Fund and try and investment.
Speaker 4 (11:39):
Don't go anywhere, Please, don't go anywhere. We'll be right
back with more Money Making Conversations Masterclass. Welcome back to
the Money Making Conversations Masterclass hosted by Rashaan McDonald.
Speaker 2 (11:57):
When I'm talking to you, Sarah, is am I being
naive when I say that not a lot of people.
Speaker 3 (12:06):
I know.
Speaker 2 (12:06):
I mentioned it on the other break. But how can
I help you or help get the word out? Because
in our community, the more we know, the more small
businesses we can create within the community, more taxes we
can create within the community, the more and people we
can plog within the community. More and more of our
communities within the educational because you know, that's how taxes
(12:26):
are done for education. They tax houses, they tax businesses,
which means that the educational structure within the community is stronger.
What can we do as a team?
Speaker 1 (12:35):
I love the question. I'm smiling that you asked it,
and what can we do? It is all about word
of mouth. It's very true. We are on LinkedIn, We're
on social media. You can find us there. But really
it's all about talking to your friends, talking to us.
We have some wonderful clients who tell their friends about
(12:59):
us after they've success and their friends come to us,
and it really is all about word of mouth, especially
in the community that we serve, and it is about
trust and it is about, you know, helping people overcome
that reluctance and awareness of the financial services industry. That's
really what it's about. So you have to hear about
it from your friends and your family.
Speaker 2 (13:19):
You know, when one comes into see you. And I
know sometimes on this show, I'll be honest with you, sir,
I get frustrated. I might get too emotional because I
want people to see it. I want people to get it.
I want people to run out there and just take
advantage of the opportunity you know, and you said, you know,
for fifteen years you've basically doing this at Charles Swab
(13:41):
before you came over here and did it for as
the CEO and the president of BCF.
Speaker 3 (13:48):
So what frustrates you?
Speaker 2 (13:49):
I know that has to be some degree of frustration
that comes out of this because you want to make
a difference and you have financing that can make a difference.
I guess I said, that's question. Are enough people knocking
on your door?
Speaker 1 (14:03):
No? No, enough people are not knocking on our door.
Speaker 3 (14:07):
Sometimes you have to be patient.
Speaker 2 (14:09):
Sometimes you have to understand that we all want everything
to jump off real quick.
Speaker 3 (14:14):
But you know, you want to do you want to
open the door.
Speaker 2 (14:17):
And when people run past you like they do on
Black Friday, you know, but it doesn't happen that way.
And and and the process is is knowledge. It is
also is networking. It also is people. And sometimes you know,
the part that I that annoys me about a good
(14:37):
secret is that people don't want to share it. Sometimes
you know, they're they're shared with their little group or
they might have a little Facebook group online they share
within that little group and things like that, and and
it's winning for them, but it's not winning for enough people.
And that's the purpose of the community. Develop a financial institution.
It's called community, which means it's setting place for the
(14:58):
community to have an our oportunity to grow their businesses
within the community. With that being said, what are three
financial secrets for all business owners seeking to grow their enterprise.
Speaker 3 (15:10):
Or their business?
Speaker 1 (15:11):
M Okay, I would say one is know the industry
that you want to serve. And this is specifically for
the B to B companies that we serve. Right, So,
if you're a if you're a catering company for example, yes,
and you are serving the tech industry, well, you might
have certain insurance requirements that you need. And I say
(15:32):
tech industry, I'm actually located in California, so it comes
to mind. You might have certain insurance requirements, you might
have certain legal or compliance requirements that you need to
be aware of and comply with in order to serve
that industry. So really knowing the industry that you serve
is really really important. Another on just the personal side,
(15:57):
know your credit score. Everybody needs you can go to
you know, there are so many free uh opportunities to
get to know your own credit score. I always say,
know your credit score know yourself right, and it really
is about knowing ourselves, knowing what our strengths and weaknesses
are and also working on our weaknesses. Your credit something
(16:19):
that can be It can go up very it can
go up, it can go down, but it can go up,
and people need to know that and not you know
and be and be willing to uh to fix that.
Another one is don't take on debt you can't repay.
Sometimes people come to us and they say, well, what
loan size can you give me? And we say, that's
not how you think about it. What you need to
(16:40):
think about is what kind of cash flow your business
is throwing off and whether that cash flow can cover
the principle and interest on a loane. And you'll also
want to know do I have collateral? What things can
I do to support alone? Most people know about mortgage lending,
and well, business lending frankly is similar in a lot
(17:02):
of ways. There's an asset, right, it's your business, and
there's cash flow, which is your income, and you need
to know that you can repay that loan and that
is going to help your business grow, not that it's
going to keep you up at night.
Speaker 2 (17:13):
Great Karen Karen's online. Karen, Welcome to Money Making Conversation Masterclass.
You're speaking to Rushan McDonald. Sarah, what is your question?
Speaker 5 (17:21):
Thank you, I appreciate it. My question is how can
you display three years of taxes when you own a
food truck business that's seasonal? So how do you deal
with the three year tax returns when it's so unpredictable
when you put in your your application for a loan.
Speaker 1 (17:42):
Absolutely, it's a great question. And we where as we
you know it's required, we do need the tax returns.
We need to understand you know, what your appridance the government.
Speaker 3 (17:53):
First of all, we got we gotta find you taxes
every year.
Speaker 2 (17:56):
Got to get your taxes in every year to be
able to consider that. But more importantly, what are your
sales looking like? That's what she's talking about. Are you projecting?
Are you are you?
Speaker 3 (18:06):
Are your sales flat?
Speaker 2 (18:07):
We're gonna look at if you're seasonal, there are no
seasonal peers that you're open.
Speaker 3 (18:11):
What are your sales.
Speaker 2 (18:12):
Matching day to day, month to month, month and all
these things? Was your what was your expenses versus your income?
Those things that that's the part of the business that
frustrates small business owners. Because you have to do the math,
and sometimes the math doesn't add up. But what Sarah
is saying is don't let that stop you, because it's
important that you start talking to somebody who knows how
(18:35):
to handle money, and if you're not handling it correctly,
they can advise you, especially if you're trying to get
a loan from them, and help you correct maybe the
way you're doing business, or advise you. If you do this,
then you can be considered for this, which may be
a key moment in running your business. So I feel
it's important that when I'm on the show, when she's
(18:55):
a person like hers on the show, even if you
don't or can't afford a loan, call these banks and
find out or these community development financial institutions so they
can set you in the right course to think about budgets,
to think about planning, to think about that path to success.
Do you think that when I'm saying it is correct, Sarah.
Speaker 1 (19:14):
The relationship is so important for Sean. Absolutely, you need
to have the relationship before you think you need financing,
because it takes some time to get to know the
lender and for the lenders to get to know you.
First of all, second of all, you don't know when
an opportunity is going to fall in your lab. You
may think I don't need credit. You may think I
got it, I got this. I don't. I don't need
(19:36):
help and I don't need cash. But the day may come,
and it could be tomorrow when you have an opportunity
that you need an additional amount of money to make
good on and to deliver on.
Speaker 2 (19:50):
I want to thank you Karen for calling in to
the show as important that she called because she got answered.
But important Karen is about their relationship. So it's about
the information you're trying to get and other Karens in
the world out there, of Brian's the world of bills,
in the world out there that need to really start
getting answers to your business in order to move forward,
(20:11):
and stop praying about it, stop holding by it, stop
putting it all in faith, and start putting it in
the pen to the papers, they say, well, thank you,
the energy was fantastic. Your education and the tools you're
going to bring to the table again. Sarah Hoppin, President
CEO of BCF Business Consortium Fund, please tell them how
to get in touch with you.
Speaker 1 (20:30):
As I wrap up the show, www dot Bcfcapital dot com.
Come see our website, come get in touch and we
would love to talk to you.
Speaker 2 (20:39):
Thank you for coming on money Making Conversation master Class.
I appreciate you.
Speaker 1 (20:42):
Fantastic take care Okay, thank you everybody for bye.
Speaker 2 (20:46):
This has been another edition of Money Making Conversation Masterclass
posted by me Rashawn McDonald.
Speaker 3 (20:51):
Thank you to our guests on the show today and
thank you. I'll listen to your audience now.
Speaker 2 (20:55):
If you want to listen to any episode I want
to be a guest on the show. Visit Moneymaking Conversations
dot com. Our social media handle is Moneymaking Conversation. Join
us next week and remember to always.
Speaker 3 (21:07):
Leave with your gifts. Keep winning.
Speaker 1 (21:10):
H
Hi.
Speaker 2 (00:00):
I am Rashan McDonald, a host of weekly Money Making
Conversation Masterclass show. The interviews and information that this show
provides are for everyone. It's time to stop reading other
people's success stories and start living your own. If you
want to be a guest on my show, please visit
our website, Moneymakingconversations dot com and click to be a
guest button Chris submit and information will come directly to me.
Speaker 3 (00:24):
Now let's get this show started. My guest is Sarah Harbin.
Speaker 2 (00:28):
She is the president the chief executive officer of their
Business Consortium Fund and TRYAD Investments. She has created innovative
and responsive lending programs throughout her career and community development finance.
She's responsible for the driving BCF towards greater impact and
the communities we serve by expanding capital reach to business
owners of color since nineteen eighty seven. Now, since she's
(00:51):
been there since nineteen eighty seven, BCF has originated two
hundred and twenty eight million dollars in loans and financed
nine hundred and fifty minority business in as our mbes.
Please welcome to Mind Making Conversations Master Class. Sarah Holpm,
how are you doing Sarah.
Speaker 1 (01:06):
I'm doing great. Thanks for having me.
Speaker 3 (01:08):
I tell you I have been waiting on this call.
Speaker 2 (01:10):
We met at the financial Summit and we hit it
off because we were.
Speaker 3 (01:15):
Like minded people. But it was at the end of
the day and we got this done.
Speaker 2 (01:18):
You had to fly back and I said, well, can
I get you on my show to talk about what
you do? So let's kick it off and just educate
my audience on exactly what do you do when your
company does at BCF.
Speaker 1 (01:28):
Yeah, absolutely, thanks for this opportunity. BCF is a non
profit lender. We are a community development financial institution and
we exist to serve We're not a bank. What makes
us different from a bank is that we provide loans,
but we work with our borrowers very closely to ensure success.
(01:50):
And where when a bank has a client who runs
into any trouble or you know, has trouble repaying the loan,
they are forced to write it off pretty quickly, but
CDFIs like BCF are not required to do that. We
will work with our client to ensure that that client
(02:10):
can repay and that the client can really move on
to experience growth and success as an enterprise.
Speaker 3 (02:18):
Yeah.
Speaker 2 (02:19):
So now this is the first time I've heard of
a community developed financial institution. Are they locating in certain
parts of the country and they are located in every state?
Tell me a little bit more background in the history
of these.
Speaker 1 (02:30):
Yes, so, community development financial Institutions or CDFIs are located
across the country. There are about two thousand of us
around the country, and I think that we are one
of the best kept secrets, and we should no longer
be a secret. We are actually designated by the US
Department of the Treasury. We receive money from banks and nonprofits,
(02:55):
and about half of us work in a small business
space and half of us work in the affordable housing space.
Everything we do is to lift up communities and to
help a community thrive and grow.
Speaker 2 (03:07):
Okay, now this is of course it gets exciting because
you're saying that people who come to you, it's more
like a partnership. You know, you're trying to first of all,
provide revenue or capital so they can fund their business.
But also you're not as quick to like pull the
rug out from underneath them if it doesn't go as
it as planned. How do you assist these potential applicants
(03:29):
A loan of people who've been secured loans to get
over those rocky moments in their business.
Speaker 1 (03:34):
Sarah, Yeah, absolutely so, as as as you and some
of your audience might know, there is certainly a great
deal of perhaps reluctance and wariness in communities of color
to engage in financial systems. And it's you know, it's
not without good reason. There has been discrimination. There has there,
(03:57):
you know, and there and it still exists. And so
a lot of our clients are coming to us really
for the first time. Even as successful a business person
as they may be, they may be engaging in the
financial market for the first time, and there is a
lot of education that needs to take place to ensure
that that person is set up for success, to be
(04:17):
able to repay the loan, to be able to grow
business and repay the loan. And so we set up
that trusting partnership from the get go. We want to
know everything about our clients. We want to help them
through the rocky beginning often and then towards success. But
every business experiences ups and downs with a business cycle,
(04:39):
whether it be like supply chain shocks that happened during
the pandemic, all businesses experience ups and downs. And because
we have established that relationship of trust. Our clients are
willing to talk to us about what they need and
how we can help them throughout their business cycles.
Speaker 2 (05:00):
And Sarah Halpin, she's the president and CEO of the
Business Consortium Fund and try an Investments to BCF. I
met her at a financial summit and at that's financial
summer she was meeting individuals who will come in there
and the seeking advice or seeking opportunities, seeking ways that
they can grow their business or how they can be
advised to grow their business.
Speaker 1 (05:21):
Now, this location is based where we have physical offices
in New York, but we lend nationwide. We lend primarily
to businesses operate who are who have a B to
B model, So a business providing a good or service
to another business, and in that business, there was likely
to be a contract, right, a contract between your small
(05:43):
business and the local government, or your small business and Walmart.
And that's where we come in to help these small
businesses make good on their contracts, to help them hire
the people, buy the materials, and whatever it is they
need to deliver on their contract.
Speaker 2 (06:04):
You know, people, all people drop in and out at
different times of the show.
Speaker 3 (06:07):
At this time of the show.
Speaker 2 (06:08):
Can you tell people how they can reach out and
find more information about you know, BCF and what you
guys are doing for the community, the outreach and the
opportunities to get capital for their businesses.
Speaker 1 (06:22):
It's so easy. All anybody would need to do is
go to b cfcapital dot com. That's b AS in business,
see us in consortium and f as and fund bcfcapital
dot com and apply for a loan there or simply
put in your information and one of our lending staff
will reach out to you. And the great thing about
(06:44):
BCF we are community led. We are people who understand
what the needs of the small business owner are and
we'll be you know, standing by, ready to respond and
to to help you out.
Speaker 3 (06:58):
Great.
Speaker 2 (06:58):
Well, this this is great now. I always I'd always
like to get a little background on individuals, because you
seem to be passionate about this. It seems to be
something that you bonded to. Does your background lend yourself
to this? Can you educate my audience on a little
bit about how you started in the financial community before
I go into the more questions and dan led and
how did you wind up at BCF.
Speaker 1 (07:20):
Yeah, well, I never thought I was going to have
a career in financial services, I'll just start there. But
the way that I got there is as as like
a little girl. I always understood that where I was
born and the opportunities I had had so much to
do with luck. And part of that is my mother
(07:44):
came to the United States from Trinidad and Tobago when
she was in her early twenties and she was trying
to flee from a pretty bad situation. And she got
to the United States and met my dad and she
was able to who have and make a life for
herself because people helped her along the way. And that
(08:09):
that's how I understood that without people helping each other,
I mean, I wouldn't be here, my mother wouldn't be here.
And I started doing work in human rights, and that
took me to economic one. In being interested in economic development,
I actually worked at Charles Schwab for fifteen years. I
(08:29):
never thought I'd work for a bank for that long,
but when I was there, guess what I was doing,
or Sean, I was making loans to CDFI's like, wow,
why I did that for fifteen years before I got
to lead this company.
Speaker 2 (08:42):
Yeah, we know the beauty about your conversation is that
it's about opportunity. And what I try to do on
my show is I find so many people who are
feeled with doubt. So many people are filled with disbelief
that what people say isn't real, what people the work.
I think that what we especially in the minority community,
(09:03):
is that nothing's ever easy. You know, I wish you
could just fill out a single piece of paper and
your dreams would come true. How what is the process
of walking through the front door and the paperwork that
one would have to fill out all the background because
do you have to have fantastic credit? I don't want
to start too far into the conversation, but can you
(09:23):
walk us through the process of sitting down or contacting
cd A, cd IFI in this case BCF, which is
business consorting fund and try and investments.
Speaker 1 (09:34):
So the first thing I would say is put your
fear in your self doubts, you know, put them aside
before you walk in the door. Put aside your preconceived notions,
and also put aside your maybe desire to put everything
in the best light. Because when it comes to capital provision,
(09:57):
we need to really know you, and that means knowing
your strength and your weaknesses as a business owner, because
we want to help and we do what we do
look for paperwork. We want three years of tax returns.
We do look at your credit score, we do look
at your business success. We do look at your bank
statements and your cash flow. And the reason we do
(10:18):
that is we want to make sure that any loan
that we provide is a path to growth and that
it's not another headache for a small business loaner. Imagine
a predatory lender. They don't care, right, They're just gonna
They're just gonna give you money until you pay it back,
and if you don't, there's serious consequences for us. Yeah,
we want, we want you to pay the money back,
(10:39):
but we want to help you understand how you pay
the money back and how this loan and how this
capital leads to growth for your company. So it's paperwork,
But don't be afraid, that's what I would say.
Speaker 3 (10:51):
Well, you know, that's that's the key. Fear. Where how are.
Speaker 2 (10:54):
The decisions on interest made on the loans that you're giving.
Speaker 1 (11:00):
Yes, one of the barriers is affordable capital. Yes, one
of the barriers to success is affordable capital. But many
of us have really solid bank partners who have extended
money to us at low rates. We borrow money from
a bank. This is how it works. We borrow the
money and then we put an interest. We add a
(11:21):
little interest to the money. We have to pay back
to the bank, and that's we charge the client so
that we can cover our own costs and that we
can also pay the bank back.
Speaker 2 (11:30):
Well, we're about to go to break. Be right back
with the incredible Sarah Howpum. She is the president and
CEO of the Business Consorting Fund and try and investment.
Speaker 4 (11:39):
Don't go anywhere, Please, don't go anywhere. We'll be right
back with more Money Making Conversations Masterclass. Welcome back to
the Money Making Conversations Masterclass hosted by Rashaan McDonald.
Speaker 2 (11:57):
When I'm talking to you, Sarah, is am I being
naive when I say that not a lot of people.
Speaker 3 (12:06):
I know.
Speaker 2 (12:06):
I mentioned it on the other break. But how can
I help you or help get the word out? Because
in our community, the more we know, the more small
businesses we can create within the community, more taxes we
can create within the community, the more and people we
can plog within the community. More and more of our
communities within the educational because you know, that's how taxes
(12:26):
are done for education. They tax houses, they tax businesses,
which means that the educational structure within the community is stronger.
What can we do as a team?
Speaker 1 (12:35):
I love the question. I'm smiling that you asked it,
and what can we do? It is all about word
of mouth. It's very true. We are on LinkedIn, We're
on social media. You can find us there. But really
it's all about talking to your friends, talking to us.
We have some wonderful clients who tell their friends about
(12:59):
us after they've success and their friends come to us,
and it really is all about word of mouth, especially
in the community that we serve, and it is about
trust and it is about, you know, helping people overcome
that reluctance and awareness of the financial services industry. That's
really what it's about. So you have to hear about
it from your friends and your family.
Speaker 2 (13:19):
You know, when one comes into see you. And I
know sometimes on this show, I'll be honest with you, sir,
I get frustrated. I might get too emotional because I
want people to see it. I want people to get it.
I want people to run out there and just take
advantage of the opportunity you know, and you said, you know,
for fifteen years you've basically doing this at Charles Swab
(13:41):
before you came over here and did it for as
the CEO and the president of BCF.
Speaker 3 (13:48):
So what frustrates you?
Speaker 2 (13:49):
I know that has to be some degree of frustration
that comes out of this because you want to make
a difference and you have financing that can make a difference.
I guess I said, that's question. Are enough people knocking
on your door?
Speaker 1 (14:03):
No? No, enough people are not knocking on our door.
Speaker 3 (14:07):
Sometimes you have to be patient.
Speaker 2 (14:09):
Sometimes you have to understand that we all want everything
to jump off real quick.
Speaker 3 (14:14):
But you know, you want to do you want to
open the door.
Speaker 2 (14:17):
And when people run past you like they do on
Black Friday, you know, but it doesn't happen that way.
And and and the process is is knowledge. It is
also is networking. It also is people. And sometimes you know,
the part that I that annoys me about a good
(14:37):
secret is that people don't want to share it. Sometimes
you know, they're they're shared with their little group or
they might have a little Facebook group online they share
within that little group and things like that, and and
it's winning for them, but it's not winning for enough people.
And that's the purpose of the community. Develop a financial institution.
It's called community, which means it's setting place for the
(14:58):
community to have an our oportunity to grow their businesses
within the community. With that being said, what are three
financial secrets for all business owners seeking to grow their enterprise.
Speaker 3 (15:10):
Or their business?
Speaker 1 (15:11):
M Okay, I would say one is know the industry
that you want to serve. And this is specifically for
the B to B companies that we serve. Right, So,
if you're a if you're a catering company for example, yes,
and you are serving the tech industry, well, you might
have certain insurance requirements that you need. And I say
(15:32):
tech industry, I'm actually located in California, so it comes
to mind. You might have certain insurance requirements, you might
have certain legal or compliance requirements that you need to
be aware of and comply with in order to serve
that industry. So really knowing the industry that you serve
is really really important. Another on just the personal side,
(15:57):
know your credit score. Everybody needs you can go to
you know, there are so many free uh opportunities to
get to know your own credit score. I always say,
know your credit score know yourself right, and it really
is about knowing ourselves, knowing what our strengths and weaknesses
are and also working on our weaknesses. Your credit something
(16:19):
that can be It can go up very it can
go up, it can go down, but it can go up,
and people need to know that and not you know
and be and be willing to uh to fix that.
Another one is don't take on debt you can't repay.
Sometimes people come to us and they say, well, what
loan size can you give me? And we say, that's
not how you think about it. What you need to
(16:40):
think about is what kind of cash flow your business
is throwing off and whether that cash flow can cover
the principle and interest on a loane. And you'll also
want to know do I have collateral? What things can
I do to support alone? Most people know about mortgage lending,
and well, business lending frankly is similar in a lot
(17:02):
of ways. There's an asset, right, it's your business, and
there's cash flow, which is your income, and you need
to know that you can repay that loan and that
is going to help your business grow, not that it's
going to keep you up at night.
Speaker 2 (17:13):
Great Karen Karen's online. Karen, Welcome to Money Making Conversation Masterclass.
You're speaking to Rushan McDonald. Sarah, what is your question?
Speaker 5 (17:21):
Thank you, I appreciate it. My question is how can
you display three years of taxes when you own a
food truck business that's seasonal? So how do you deal
with the three year tax returns when it's so unpredictable
when you put in your your application for a loan.
Speaker 1 (17:42):
Absolutely, it's a great question. And we where as we
you know it's required, we do need the tax returns.
We need to understand you know, what your appridance the government.
Speaker 3 (17:53):
First of all, we got we gotta find you taxes
every year.
Speaker 2 (17:56):
Got to get your taxes in every year to be
able to consider that. But more importantly, what are your
sales looking like? That's what she's talking about. Are you projecting?
Are you are you?
Speaker 3 (18:06):
Are your sales flat?
Speaker 2 (18:07):
We're gonna look at if you're seasonal, there are no
seasonal peers that you're open.
Speaker 3 (18:11):
What are your sales.
Speaker 2 (18:12):
Matching day to day, month to month, month and all
these things? Was your what was your expenses versus your income?
Those things that that's the part of the business that
frustrates small business owners. Because you have to do the math,
and sometimes the math doesn't add up. But what Sarah
is saying is don't let that stop you, because it's
important that you start talking to somebody who knows how
(18:35):
to handle money, and if you're not handling it correctly,
they can advise you, especially if you're trying to get
a loan from them, and help you correct maybe the
way you're doing business, or advise you. If you do this,
then you can be considered for this, which may be
a key moment in running your business. So I feel
it's important that when I'm on the show, when she's
(18:55):
a person like hers on the show, even if you
don't or can't afford a loan, call these banks and
find out or these community development financial institutions so they
can set you in the right course to think about budgets,
to think about planning, to think about that path to success.
Do you think that when I'm saying it is correct, Sarah.
Speaker 1 (19:14):
The relationship is so important for Sean. Absolutely, you need
to have the relationship before you think you need financing,
because it takes some time to get to know the
lender and for the lenders to get to know you.
First of all, second of all, you don't know when
an opportunity is going to fall in your lab. You
may think I don't need credit. You may think I
got it, I got this. I don't. I don't need
(19:36):
help and I don't need cash. But the day may come,
and it could be tomorrow when you have an opportunity
that you need an additional amount of money to make
good on and to deliver on.
Speaker 2 (19:50):
I want to thank you Karen for calling in to
the show as important that she called because she got answered.
But important Karen is about their relationship. So it's about
the information you're trying to get and other Karens in
the world out there, of Brian's the world of bills,
in the world out there that need to really start
getting answers to your business in order to move forward,
(20:11):
and stop praying about it, stop holding by it, stop
putting it all in faith, and start putting it in
the pen to the papers, they say, well, thank you,
the energy was fantastic. Your education and the tools you're
going to bring to the table again. Sarah Hoppin, President
CEO of BCF Business Consortium Fund, please tell them how
to get in touch with you.
Speaker 1 (20:30):
As I wrap up the show, www dot Bcfcapital dot com.
Come see our website, come get in touch and we
would love to talk to you.
Speaker 2 (20:39):
Thank you for coming on money Making Conversation master Class.
I appreciate you.
Speaker 1 (20:42):
Fantastic take care Okay, thank you everybody for bye.
Speaker 2 (20:46):
This has been another edition of Money Making Conversation Masterclass
posted by me Rashawn McDonald.
Speaker 3 (20:51):
Thank you to our guests on the show today and
thank you. I'll listen to your audience now.
Speaker 2 (20:55):
If you want to listen to any episode I want
to be a guest on the show. Visit Moneymaking Conversations
dot com. Our social media handle is Moneymaking Conversation. Join
us next week and remember to always.
Speaker 3 (21:07):
Leave with your gifts. Keep winning.
Speaker 1 (21:10):
H
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