Frequently Asked Questions

What is the primary source of repayment for any TEDC loan?

The primary source of repayment for any loan is operating cash flow from the business. If the business is a start-up or does not have historical cash flow, but has a sound business plan with financial projections, then working capital from loan proceeds may be used for loan repayment for a limited timeframe.

What is a start-up?

A business operating less than 2 years is considered a start-up.

What is cash flow?

Cash flow is a term used to describe the amount of money flowing in and out of a business or individual over a specific period of time. It is used to measure a company's financial health and liquidity. Positive cash flow indicates that a business is generating more money than it is spending, while negative cash flow indicates that it is spending more money than it is generating.

What is a business plan?

A business plan is an essential tool for entrepreneurs and business owners as it helps them to focus their efforts, secure financing, and evaluate progress. This document outlines the goals, strategies, and financial forecasts of a business.

What are financial projections?

Financial projections are estimates of a company's future financial performance. They are typically used by management to plan for the future and are used by investors and creditors to evaluate a company's potential.

Financial projections generally include income statements, balance sheets, cash flow statements, and other financial statements that show how a company's finances are likely to look in the future. They are usually based on a set of assumptions about future events, such as sales growth, cost of goods sold, capital expenditures, and financing activities.

What is limited guaranty?

A limited guaranty is a contractual agreement in which one party agrees to be responsible for fulfilling the obligations of another party, up to a certain limit. This type of agreement may be used to protect the interests of the guarantor in the event that the other party fails to fulfill their obligations.

The limited guaranty typically sets out the conditions under which the guarantor will be liable, the maximum amount of liability, and any other applicable conditions or details of the agreement.

What can business loans be used for?

TEDC business loans may be used for the following purposes: start-up expenses, the purchase or expansion of an existing business, inventory, equipment, tenant improvements to leased property, commercial real estate, residential real estate, working capital, loan refinancing, and other business needs approved by TEDC.

Do I need to create jobs to qualify for financing?

Some TEDC loan programs have a job creation or retention requirement. Job goals vary by program and are usually determined by federal agencies providing support to TEDC.

What is a personal guaranty? Do I need to provide one?

A personal guaranty is a promise to pay made by the business owner. A personal guaranty is enforced if the business does not pay its debt. Any person or entity holding 20% or more ownership in the business must personally guarantee the loan. In some cases, all owners may be required to provide a limited guaranty. A non-owner approved by TEDC may also provide a personal guaranty.

What is equity? Do I need any?

Equity is the difference between the value of an asset and what you owe for that asset. For example, a $100,000 home with a $60,000 mortgage has $40,000 in equity, which can be pledged as collateral for a TEDC business loan. In business terms, equity (also known as net worth) is the difference between the value of all business assets and all liabilities. Lack of equity is usually not grounds for decline unless real estate or long-life equipment is being purchased; however, equity is the owner’s “skin in the game” and a way of sharing risk with TEDC.

What is collateral? Do I need any?

Collateral is an asset pledged to secure business loans. Eligible collateral may include business assets purchased with loan proceeds, existing assets owned by the company, personal assets of the guarantor such as equity in a home or other real property, personal property, or marketable securities (excluding Retirement Accounts). If a default occurs, collateral may be sold. Proceeds from the sale of collateral may be used to pay business debt. Collateral is required on most, but not all TEDC loans.

What is the timeline for loan approval?

Upon receipt of a complete TEDC Loan Application package, approval generally takes 2-4 weeks. Quick processing depends on loan size and the ability of the applicant to provide additional information immediately upon request.

Does TEDC provide start-up financing for small businesses?


Do I need perfect credit to get approved?

No! Perfect credit is not required to get approved at TEDC. In fact, many applicants don’t have perfect credit. However, multiple personal accounts with recent slow payments and an unsatisfactory explanation may cause a delay in approval.

What types of businesses are eligible for financing?

Businesses must be for-profit enterprises and headquarter in the State of Oklahoma. Some programs are limited to businesses within the corporate limits of Tulsa.

How do I apply for a loan application?

Applying for a loan through TEDC is easy! Just click on the Apply Now button in the top right corner. You will get started by creating an account. If you need to complete the application offline, you can do so by downloading the application here.