It's all about financial success this week as Kris welcomes Jessica Ferguson from Live Oak Bank, the nation's largest SBA lender. Jessica talks about Live Oak's commitment to helping small business owners and how they have grown from starting with veterinarians and dentists to 35 different industries, including ECE. Jessica shares some best practices in the world of lending and borrowing and gives some great tips to get your business financially prepared for the next level. She discusses the different lending options that Live Oak offers, and what they look for when taking on new clients.

Key Takeaways:

[9:44] Jessica talks about Live Oak's unique business model and how they have grown from conception.

[10:47] Live Oak's 35 different verticals, and why they were once dubbed the "doggie bank"!

[12:52] Fun fact: Jessica lived abroad both in Spain and Argentina, and made lifelong friends that she still keeps in touch with today.

[13:41] Some trends Jessica is seeing regarding early education and early childhood businesses.

[14:50] The types of loan programs Live Oak offers.

[17:38] Advantages and disadvantages of both conventional and SBA lending options for school owners.

[22:29] What are the rates looking like now?

[26:00] How Live Oak approaches and analyzes deals.

[29:57] The benefits of working with a bank that knows the industry more than just a general lender.

[32;46] How do they work with other borrowers?

[34:27] Best practices for schools seeking financing.

[38:38] Fingers crossed for interest rates coming (and staying) down in 2024.

Quotes:

• "It came down to this model of let's find industries that have performed well through recessions that have good repayment history and who maybe don't have the most robust personal financial statements." — Jessica [14:40]

• "They are just really good borrowers that fit with SBA programs." — Jessica [14:43]

• "I think it is a ripe time for acquisition opportunities." — Jessica [15:01]

• "That's also the nice thing about working with a bank that really knows the industry. We know what to look for, and what makes sense." — Jessica [29:47]

• "Knowing what each person's priorities are helps us work with that borrower to make sure that we're putting them in the right product." — Jessica [31:57]

• "Being disciplined about tuition increases is really important." — Jessica [34:52]

Sponsored By:

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Mentioned in This Episode:

Kris Murray

The Child Care Success Company

The Child Care Success Academy

The Child Care Success Summit

Grow Your Center

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Live Oak