Underserved SMBs Can Benefit From Partnering With a Lender Committed to Their Success

Unique Loan Programs Benefit Underserved Smbs

In a Nutshell: Finding affordable financing that suits your business can be challenging. Pursuit offers specialized loan programs to help businesses from underserved communities finance projects and expand their operations. The company also provides advisory services to boost businesses in need of low-cost, strategic support.

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A great idea for a new business doesn’t guarantee its success. Many entrepreneurs require outside financing to help their companies take flight. But business owners in underserved communities may not have lenders lining up to pour cash into their new ventures.

Pursuit provides loans to small businesses through a number of different lending programs. We spoke with Chris Levy, Pursuit’s President and CEO, to learn more about the company’s mission. 

Pursuit logo

Pursuit has operated for more than 65 years. Levy told us that the company has expanded considerably over time, but its mission to meet the needs of small businesses hasn’t changed. 

“Our shareholders are predominantly banks throughout the state of New York who have a goal of serving businesses and giving themselves a place to send businesses when they can’t fund them on their own,” Levy told us. “We’re committed to serving underserved markets, including women, minorities, veterans, and those with low to moderate incomes, to make sure they have the opportunity to receive financing to start and grow their companies.”

New business often comes to Pursuit via referrals. In addition to banks, organizations seeking to grow their local communities direct businesses to engage with Pursuit.

Pursuit is flexible in putting together financing for its customers. Levy told us the company is a direct lender in many cases, but it also partners with banks to provide loans to businesses. Businesses that aren’t eligible for traditional financing can use Pursit’s loans until they’re ready to seek lending from a bank.

“We’re really ingrained within our communities and work closely with our bank partners to make sure we can provide loan opportunities to help businesses grow to the point where they don’t need us anymore,” Levy told us. “We want to be there for businesses to help them along their journey until they can get more cost-effective financing.”

Responsible Lending Benefits New Businesses

When you hear the words “small business,” you may think of a mom-and-pop ice cream parlor in your hometown or a lawn-cutting service run by a group of local college students. But, according to the U.S. Small Business Administration (SBA), the label can apply to businesses with hundreds of employees and annual revenue of $1 million or more.

Pursuit counts businesses with multiple locations, hundreds of employees, and millions of dollars in annual revenue among its customers. Levy told us that most businesses with 500 or fewer employees will qualify for one of the company’s loan programs.

Pursuit provides financing to startup businesses. Levy told us that many banks won’t even consider approving a loan for a business that hasn’t been operating for at least two years. 

The company works with businesses in a variety of industries, including the healthcare, hospitality, manufacturing, professional services, and retail sectors.   

Chris Levy
Chris Levy is Pursuit’s President and CEO.

“Everything we do goes back to that community aspect and making sure we help communities flourish, so the profile of the small business customers we help covers a wide range,” Levy told us. “One of the themes we always touch on is that we’re going to do our lending in a responsible way. It’s not necessarily hard for a business to find somebody willing to lend them money, but it is hard to find somebody that’s going to do it responsibly.”

Pursuit’s loans require borrowers to make monthly payments. Levy told us the company doesn’t issue loans that stipulate businesses submit daily payments.

When a business owner doesn’t qualify for a Pursuit loan, they’ll be referred to a community organization, like a Small Business Development Center (SBDC) that can help them meet the requirements. In some cases, Pursuit staff may also work with the business owner to shore up their application to streamline the underwriting process and ensure they have everything needed to submit a complete application.

Business owners will find a wide variety of loan programs with Pursuit, including options that make loans more affordable for small businesses.

“We’ll have programs from time to time that offer reduced rates or other more advantageous terms that even a bank can’t offer,” Levy told us. “That way, we can provide businesses with that little bit of extra financing they need to get over the hump, open up a new location, or add a new product they hadn’t been able to offer before. Offering supportive programs is a really important way to help businesses get the access to capital that can facilitate growth opportunities.”

Expansion Brings Pursuit to New Regions

Pursuit is headquartered in Albany, New York. In its early years, the company only served businesses that operated within the Empire State, but its success over the years allowed it to expand its footprint. Pursuit now serves businesses in seven states — Connecticut, Illinois, Nevada, New York, New Jersey, Pennsylvania, and Washington. 

Pursuit offers all of its products to businesses in the four states the company serves on the East Coast. Levy told us Pursuit began working with businesses in Illinois, Nevada, and Washington in the past few years. The company offers a smaller range of services to customers in those states.

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A vision statement helps a company develop strategies to weather economic storms and prosper. Levy told us Pursuit’s vision statement is to create a more inclusive economy and give every business owner in its communities a pathway to success. The company offers a loan program for veteran-owned businesses that comes with a reduced interest rate to help veterans start and grow businesses. 

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Pursuit serves businesses in seven states across the U.S.

According to Levy, the most popular loan product Pursuit offers are SBA 504 loans, which are typically used to purchase commercial real estate or large pieces of equipment.

“The beauty of these loans is that they involve a partnership between Pursuit and a bank,” Levy told us. “The bank provides part of the financing, and we provide part of the financing. Typically a bank will require a down payment of 20% or 25%, but the 504 program allows for businesses to only have to put down 10%.”

The reduced equity requirement allows businesses to keep more of their funds in-house and use them to grow their operations. Levy told us SBA 504 loans also come with a fixed interest rate and terms that can extend up to 25 years.

Pursuit also offers SBA 7(a) loans, which businesses can use to finance acquisitions. Levy told us this is especially crucial in today’s business environment where members of the baby boomer generation are retiring and looking to sell their companies to one of their employees.

“The SBA 7(a) program is a really broad program that allows businesses to receive funding up to $5 million for a number of business purposes like buying equipment and inventory,” Levy told us. “If a business has taken on debt and they want to get better terms that allow for more favorable repayments, then they can use this program to refinance debt.”

Advisory Services Make Businesses Stronger

A business may need a large loan when they expand into new territories or build new stores and warehouses. But sometimes a business only needs funds to finance a small project.

Microloans provide businesses with financing of up to $50,000. Pursuit offers microloans through an SBA program. The company also offers a lending product it calls SmartLoans, which allows businesses to borrow up to $100,000.

Businesses that need a quick injection of cash can benefit from SmartLoans. Levy told us the company can approve applications for SmartLoans within two days and fund the loan within five. 

“Online applications allow us to process things and turn them around quickly,” Levy explained to us. “Because the last thing you want a business owner to have to do is go through a two-month process to borrow a smaller amount of money. They should be able to do that efficiently.”

In addition to loan solutions, Pursuit offers business advisory services. The company has consultants on staff and engages with third-party consultants to assist businesses that need help with their accounting, marketing, or even building a website that allows for online sales. 

Pursuit’s advisory services also help businesses establish human resources tools, including employee handbooks and materials a business can use to train their growing staff.

“Our advisory services give business owners a resource that can help them keep their focus on really running the key parts of their company,” Levy told us. “We provide a wide range of options that owners can use to aid the growth of their business. And we provide those options for free or at very little cost to businesses.”