The pandemic did more than just elevate the U.S. Small Business Administration (SBA) as the central player in the rescue of the American economy with its Paycheck Protection Program loans, it also, “really shined a light on the agency and had the opportunity to get us out in the forefront of small business [to make them] realize the value of the product and services we have for their business,” said Heather Luzzi, Sacramento district director for the SBA.”

So, where do things lie now? The pre-pandemic problems small business owners had in getting up and running are still there, the difference is they now know where they can turn to for help. “We work with them on whatever they’re trying to accomplish,” said Scott Rogalski, associate director strategic initiatives for America’s Small Business Development Center (SBDC). “We do things as granular as helping put their lease agreements together … or maybe helping them hire their first employee.”

The problem with many aspiring small business owners, said Rogalski, is “they have a great idea … what they don’t have is business sense. We’re here to guide them.” Luzzi and Rogalski bring extensive, private-sector banking experience to their jobs, as their comments on debt make clear.

“It’s known in business, whether the SBA’s going to tell you [or] an executive at a bank is going to tell you that the only way to grow is to take on debt,” said Rogalski. “You’ve got to have some skin in the game. You can’t grow if you’re just using cash flow. You can’t project ahead if you don’t have the debt to leverage it.”

But, warns Luzzi, “Sometimes when businesses are trying to grow and find themselves in need of capital immediately, that’s the worst time to get it, because seeking it out of desperation, they’re going to get taken advantage of.” She mentioned rates as high as 144% and all quite legal.

“Many of our podcasts have been about the policy and social issues surrounding small businesses,” said NFIB California State Director John Kabateck. “This is the best one we’ve done on the nuts-and-bolts of running a small business, and I highly encourage you to give it a listen. And, I want to underscore something Heather said that before you go it alone, take a look at what’s available to you for free. I was also heartened by their kind words about Five Star Bank, which sponsored this and other podcasts.”

Click the arrow below to listen to this very interesting podcast with Heather Luzzi and Scott Rogalski and click here to listen to all past podcasts.