Recreational golfers  know the joy of getting that little ball  straight into the  cup- the perfect sound as the club hits the ball, the whoosh as the ball moves towards its goal, the wonderful sight of the ball gliding along the grass of the green and the satisfying ping as the ball sinks into the cup. An addicted golfer would call that ecstasy.

Those associated with creating the environment and game of golf, however, know it’s not all fun and joy. It is hard work and serious business. And with that serious business come challenges like financing the business of golf.  Golf businesses ranges from the golf course needing to maintain the greens to the manufacturers of the golf carts and clubs to the caterer waiting to serve the golfers fresh from their game to the golfing magazines promoting new equipment and golf vacations. The list is endless. It takes more than a village to create a good golfing experience for the consumer golfer.

So, as the business which equals one component of this joyous golfing experience, how do you finance your business’ survival, growth and success? If you are self financed through personal resources or investors- great. If you need debt financing and can walk into your bank and get everything you need on terms you can afford, that’s great too. Many of you are not in those positions. The good news is that there are resources out there to help you with financing your golf related business. Most of them are government related and exist to help those businesses who don’t have easy access to personal or conventional funding sources.  Their mission is typically to assist small businesses (that’s the vast majority of you) in order to help the local economy.

Government related financing programs range from those offering capital access funding to machinery & equipment  and working capital. Some of the more common ones available to Long Island based golf related companies are:

For capital assets:
US Small Business Administration (SBA) 504 loan program- lends up to 40% of project cost (land, building, construction, machinery and related costs) in a second lien position behind another lender, long term at good fixed rates. SBA 504 loan presence will often induce your bank or another lender to make a 50% loan and you put in just 10%. SBA 504 is available to any type of for profit company which meets SBA’s definition of small business and will create or retain jobs or otherwise positively impact the economy.

New York Job Development Authority loan program- lends up to 40% (sometimes more) of a capital project in a second lien position. Can combine with SBA 504.  Fixed and variable rates. Not available for retail businesses.

Industrial Development Agency Bonds- available to provide financing and/or real estate and other tax incentives to a capital project.

For working capital:
SBA 7A loan program- available from banks and nonbank lenders, a loan up to 100% of financing need where the lender gets a guarantee of part of the loan from SBA (thus inducing the lender to make a loan it might not otherwise make), long term, typically variable rate but can be fixed. The SBA 7A loan program can also be used for capital assets. While the 7A program is generally a term loan, some lenders offer lines of credit with the SBA guarantee.

NYS Targeted Loan Fund for Long Island-sponsored by NYS and US Dept .Commerce, Economic Development Administration, this loan fund provides loans to manufacturers and certain wholesalers for any business purpose, long term, low fixed rate. It can subordinate to other lenders including the  other government programs mentioned herein.

Micro Loans:
Some businesses need $50,000 or less- micro loans is a generic term which can mean sums in that neighborhood. Typically micro loan programs are unsecured and welcome start up businesses as well as existing ones. SBA has a micro loan program run by intermediaries. US Treasury and NYS  through their CDFI programs operated by intermediaries can provide this type of lending.

Other Financing Products:
There are venture capital funds available through government resources such as the SBA and NYS- typically provided by intermediary firms. Venture capital can be in the form of debt or equity. Even community based venture capital funds may require participation in the company governance.  Of course, this still leaves the whole world of factors, accounts receivable lenders, asset based lenders, merchant services,  etc. etc. They all have a place in the financing arena.

 The key for any business- golf related or not- in need of financing: do your research- about lenders, types of loans,  alternative resources. And, make sure to match your financing need to the appropriate type and source of financing. At the end of the day, it’s about keeping your businesses successful while helping those addicted golfers find the joy of getting that little ball straight into the cup!