Omaha Small Business NetworkFeb 07, 2017 05:18PM ● By Leo Adam Biga
“What OSBN seeks to do is to initially bridge that gap between the bank and the consumer. But after receiving an OSBN loan, our desire is for you to become bankable. Each opportunity with OSBN helped develop my confidence as a business owner. Now, I refer other people to OSBN that want to start or grow a business,”
The Omaha Small Business Network is on its third female executive director since its 1982 launch. Julia Parker leads an all-female full-time staff that continues the nonprofit’s founding mandate to assist historically undercapitalized entrepreneurs achieve financial inclusion.
OSBN helps remove barriers that inhibit some women and racial minorities from realizing business ventures. Parker says clients lack access to capital and lines of credit and often have no formal business training. Lacking collateral, they’re rejected by lenders. “To be eligible for our micro-loans, the first qualification is you be turned down for traditional financing,” Parker says.
OSBN helps “un-bankable” clients do a financial makeover.
“What OSBN seeks to do is to initially bridge that gap between the bank and the consumer. But after receiving an OSBN loan, our desire is for you to become bankable. We really hope after that two- or three- or six-year loan you develop a relationship with a local banker, through strong payments and good credit history, and then take the leap into the traditional financial market,” she says. “That’s really where we want you to go and thrive.”
On The Edge Technology co-owner Rebecca Weitzel credits a $35,000 OSBN micro-loan, plus information gleaned from OSBN classes, and network opportunities with helping grow her firm and navigate the economics of doing business. She explored options at banks and credit unions before deciding OSBN was “the best choice for us.”
“Each opportunity with OSBN helped develop my confidence as a business owner. Now, I refer other people to OSBN that want to start or grow a business,” says Weitzel.
OSBN offers a three-pronged support system: micro-loans between $1,000 and $50,000 at low interest rates; free monthly professional development and small business training classes; and below-market-rate commercial office spaces at Omaha Business and Technology Center (2505 N. 24th St.) and two nearby buildings. Ken and Associates LLC is one of two dozen OSBN tenants benefiting from commercial office space renting for 80 percent less than market value.
OSBN has lent $2 million-plus in micro-loans to startups and existing businesses since it began micro-lending in 2010.
As of October 2016, OSBN had $500,000 in outstanding loans, with $300,000 in loan payoffs during the past calendar year.
Parker says, “Those are big numbers. Our clients are paying off their loans and going on their way as successful entrepreneurs. We’re pretty proud of that.”
Spencer Management LLC owner Justin Moore is another OSBN success story.
Since receiving a $35,000 micro-loan, Parker says his business expanded services, moved to a new, larger facility, paid off the loan in full, and exceeded $1 million in annual revenue.
As a micro-enterprise development entity, OSBN is funded by private donations from local philanthropists and banks.
Parker leverages her plugged-in experience in the nonprofit and business arenas. She served as director of operations and communications at Building Bright Futures from 2007 to 2013. She applies the skills she used there, along with lessons learned as a black female running a small business, to engage OSBN clients and partners. She owns her own communications consulting agency.
“I think there’s always a barrier for minorities in certain spaces in Omaha,” she says. “The key is to try and overcome those by having a strong work ethic and being on top of your game at all times. But I think across the city, no matter what sector you’re in, there are barriers to entry.”
She reports to a board whose members represent public and private interests. OSBN partners with leading Omaha giving institutions to even the playing field.
“With the support of the Sherwood Foundation,” she says, “we have created a loan pool specifically for minority contractors and suppliers because of the issues they face. And we’ve teamed up with Creighton’s Financial Hope Collaborative to put those contractors and suppliers through a 12-week training course to ensure they’re prepared to go out and bid on, win, and fulfill those contracts. We just completed our first cohort and started our second.”
Parker likes helping dreams be realized. It’s why she said yes when the board offered her the job in 2013.
“I took the position because I really believe in the mission of supporting low-to-moderate-income entrepreneurs. I also like the idea of micro-enterprise development and its very unique take on financial inclusion.”
She described that mission in testimony before the U.S. Senate Committee on Small Business and Entrepreneurship on Capitol Hill last August. She says OSBN is “dedicated to bringing underserved local small business owners, entrepreneurs, and nonprofits the tools needed to become successful and sustainable entities.” She added, “OSBN and like-minded, community-based micro-lenders…have the ability to become a catalyst for both community and economic development.”
She sees OSBN playing a role in increasing the dearth of black middle class residents and small business owners in northeast Omaha and stimulating economic revival there.
“Small business ownership has long been held as a path to financial inclusion. Owning your own business allows you to break that cycle of poverty. Often those businesses become generational. We would love to see the 24th Street corridor come alive again with small businesses.”
Besides, she says, small businesses have a positive ripple effect by creating jobs and paying taxes.
Visit osbnbtc.org for more information.