03/20/2009

Beginning with our annual meeting in June, 2008, we have focused attention on the likely shortfall of working capital that heating oil marketers will face this year. There is a world-wide credit crunch all people and businesses face, made deeper and more severe by the home mortgage crisis that now is impacting investment banks and even major insurance companies. Even solid companies who found it relatively easy to borrow money a year or two ago will find it more difficult now and for the foreseeable future. In order to be as prepared as possible to meet the needs of heating oil retailers, we have done several things to make it as easy as possible for marketers to access the capital they need and you can download our materials here.
  • July 29, 2008 Heating Oil Retailer Capitalization/Borrowing Memorandum. This document lays out the scope of the issues marketers face with strategies to help get through some serious challenges our businesses face. This document describes the new US Small Business Administration [SBA] 7[a] loan guarantee program as well as the Connecticut Development Authority [CDA] URBANK loan guarantee program. Start with this document, make good use of its content.
  • September 17, 2008 SBDC Counseling Memorandum. This document lays out how the Small Business Development Centers [SBDC], an affiliate of the US SBA, and the Service Corps of Retired Executives [SCORE] can meet with marketers in confidential, one-on-one sessions and help marketers get their financial picture in order in preparation to meet with private lenders.  ICPA strongly encourages marketers to use these services, especially if you have any difficulty borrowing funds - the SBDC process will prepare you to meet with lenders and your use of these services is provided free of charge. Call and schedule your appointment now - information in the document about the process, how it works, and whom to call.
  • SBA Form 641. If you choose to take advantage of the free counseling/assistance of the SBDC process, federal law requires absolute confidentiality of the process so this form will need to be executed.
  • SBA Program for Heating Oil Retailers.  September 15, 2008.  This document describes the loan guarantee programs of the SBA and how they work with private lenders to make it easier for marketers to acquire the working capital they need.  Loan guarantees are not gifts or grants, marketers need to be bankable - and that's why the SBDC process described at the outside is so important.
  • Effective March 16, 2009, the SBA will temporarily guarantee 7(a) loans up to 90 percent until the end of the year or until the funds are exhausted. This increase will help provide lenders the confidence to begin lending again. Also effective March 16, 2009, the SBA will eliminate certain loan fees.

The Office of the Governor and the Governor's Business Advocate, Connecticut Development Authority, U.S. Small Business Administration, Small Business Development Centers, the Service Corps of Retired Executives, Citizens Bank, the Connecticut Bankers Association and ICPA have all worked hard to pull together the tools on this page to help marketers with dealing with financial management, private lender borrowing, accessing loan guarantees and accessing professional financial management assistance if you need it.  The SBA loan guarantees under the 7[a] program would not be possible were it not for the work of the New England Fuel Institute working to change the SBA definition of a small business to a company of 50 or fewer employees.

Make use of these services, much work has gone into putting all this together from many different parties and it will help you better prepare for the winter and the financial management of your company.

Gene Guilford, gene@icpa.org, Chris Herb, chris@icpa.org, David Chu, chu@icpa.org  -  Toll Free 1-866-521-ICPA