Small Business Services

Frequently Asked Questions

Q. What does the Roanoke Regional Small Business Development Center do?

A. The Roanoke Regional Small Business Development Center provides assistance and training to help small business owners and others planning to start a small business. Part of a statewide network, the Roanoke Regional SBDC serves serves the counties of Botetourt, Craig, and Roanoke and the cities of Roanoke and Salem. The Roanoke Regional SBDC offers free, confidential, one-on-one counseling (by appointment only) in addition to business training and workshops.

Q. What does it cost to use the services of the SBDC?

A. The services of the SBDC are provided at no charge. There will sometimes be small fees associated with seminars or products sold.

Q. Isn't the Small Business Development Center (SBDC) only for start up business?

A. While the SBDC can assist a new start up business; the primary focus is on assisting existing businesses with information to become more innovative and competitive.

Q.What is a business plan and do I need one?

A. A business plan is a written document which defines your business or business idea. Your plan should provide information about your business, your target market, how you will reach your target market, your operational plans and your management team. Additionally, your plan should include financial information such as pro-forma income statments, cash flow analysis, and break-even analysis. Everyone going into business whether looking to borrow money or not should complete a business plan. It is also a good idea to update your plan a minimum of once a year.

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

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

Q. Are there any grants or special loans availablefrom the SBDC?

A. Generally speaking, grants given to business start-ups are very rare. An exception may be for a high-tech business or for businesses producing products that can be used by certain agencies or departments involved in our national defense. Visit www.grants.gov for more information on government grant programs. In regards to loans, the sbdc does not make loans, but can assist you to identify sources of capital.

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 the 8 C's of Lending.

Do not expect to receive 100% financing. Most lenders will require a minimum of 20% or more of your money. Additionally, expect most lenders to require a personal guarantee for any loans.

Q. Can I get a loan through the SBA?

A. The Small Business Administration (SBA) does not actually loan money. If you are interested in an SBA loan you would use your local bank (or any bank), and they would process the necessary paperwork so the loan would be gauranteed by the SBA. To find out more about SBA loan programs click here.

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

A. There are specific requirements in each state, county and locality. Basic licenses and registrations a new business will need:

Local - A business license from city, town or county, depending on your location, is generally 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 the fictitious name law. You should also file for a sales and use tax number. In some lines of business (like liquor stores, barber shops, real estate offices), specific licenses are needed.

Federal - You'll need to contact the IRS for an employer's identification number and a "Going into Business Tax Kit."

Your local SBDC office has a special publication for starting a new business in your area.

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

A. A business that operates in Virginia can operate as a sole proprietorship, a general or limited partnership, a corporation or a limited liability company. In addition, like the federal tax law, the state income tax law also recognizes "S" Corporations. An S-corporation is for income tax purposes only, and generally allows the income or losses of this entity to "flow through" and be taxed or deducted at the shareholder level rather than taxing the corporation itself as an entity.

Ask your SBDC counselor for the special publication that gives you more information on types of legal entities.

Q. Do I need an appointment to visit the center?

A. Yes, you need to fill out a Request for Counseling (Form 641) and a counselor will call you to set up an appointment. You can fill out a Form 641 by clicking here.