City Wigs is a small retail wig and accessories store owned and operated by Helena Gibson.  Helena came to the SBDC seeking help to obtain financing to build her inventory.   Her business was successful and was consistently making a profit, but she had two serious problems:  A lack of collateral and credit issues (stemming from a bankruptcy seven years earlier).   In most cases conventional funding would be out of the question, but because of her strong track record of profitability, SBDC staff recommended that she apply for an SBA Microloan from Valley Small Business Development Corporation. 

Staff helped her with the completion of her loan package and helped her identify sources of collateral that she did not realize she could use (specialized fitting equipment and accounts receivable).   Special emphasis was given to train her on how to produce and understand her financial statements so she could explain her potential to a loan officer.   In spite of her shortcomings, Helena received a $30,000 SBA Microloan and is using those funds for marketing and inventory expansion.  If sales continue as they are predicted, Helena anticipates opening a second location in 2012.   She will keep in touch with SBDC staff to report progress and to request assistance with her expansion plans.