MCLEAN, Va.--(BUSINESS WIRE)--Aug. 24, 2005--The Better Business
Bureau System and Capital One Financial (NYSE:COF) today released its
latest set of resources for small business owners as part of the
BBBTips(TM) financial education series. The newly-introduced
BBBTips(TM) on Small Business Start-Up offer advice and strategies
designed to help entrepreneurs effectively plan for and manage both
the start-up costs and the financing challenges associated with
opening a small business.
"Many first-time business owners underestimate the amount of money
they will need to get their small businesses off the ground and don't
know how to secure the financing they need. These are two major
reasons so many small businesses fail within the first year or never
get off the ground at all," said Ken Hunter, president and CEO of the
Council of Better Business Bureaus. "The new BBBTips (TM) on Small
Business Start-Up offer information and easy tips entrepreneurs can
use to estimate costs and manage both the initial financing and
ongoing expenses of running a business."
The new BBBTips(TM) on Small Business Start-up Costs offer
practical worksheets and exercises, along with budgeting and planning
How to Estimate Start-up Costs
Information and an easy-to-follow worksheet on the types of
initial expenses that most businesses incur including housing needs,
office equipment and insurance.
Projecting Ongoing Monthly Operating Expenses
A monthly worksheet and formula to help small business owners
calculate the ongoing costs of outfitting, promoting and operating a
Advice on How to Economize - Wisely
Important advice for entrepreneurs on ways to economize when
launching a start-up, as well as a list of additional educational
resources to manage the start-up process.
BBBTips(TM) on Small Business Start-up Costs also provides helpful
information on U.S. Small Business Administration (SBA) loans--
considered one of the most accessible and popular financing options
for new small businesses. A government agency created in 1953 to "aid,
counsel, assist and protect...the interests of small business
concerns", the SBA's current business loan portfolio consists of
219,000 loans, which together are worth more than $45 billion. This
makes the SBA the largest single financial backer of U.S. businesses
in the nation.
Capital One-sponsored BBBTips(TM) on Small Business Administration
Loans provides entrepreneurs specific information on SBA loans
Who is Eligible for a SBA Loan?
Information on the advantages of an SBA loan and specific
requirements to qualification.
What Kinds of SBA Loans are Available?
The SBA offers three types of loans: the Basic Section 7(a) Loan
Guaranty Program, the Section 504 Certified Development Company (CDC)
Program and the MicroLoan Section 7(m) Loan Program. This section will
help aspiring small business owners determine which loan is right for
How to Apply for an SBA Loan
Specific information to walk individuals through the application
"It's important for aspiring new business owners to be aware of
the various financing options and start-up costs involved with a new
business so they can establish a realistic budget and secure adequate
financing to get started," said Diana Don Colby, Director of Financial
Education at Capital One. "There is a range of financing options
available, and this new set of BBB Tips(TM) can help entrepreneurs
navigate these choices and find the appropriate option to meet their
The Capital One-sponsored BBBTips(TM) for Small Business are free
and available online at www.bbb.org/tips/capitalone. As the 3rd
largest issuer of SBA loans, Capital One also has information
available on its Web site about loans.
About Capital One
Headquartered in McLean, Virginia, Capital One Financial
Corporation (http://www.capitalone.com) is a bank holding company
whose principal subsidiaries, Capital One Bank, Capital One, F.S.B.
and Capital One Auto Finance, Inc. offer a variety of consumer lending
products. Capital One's subsidiaries collectively had 48.9 million
accounts and $83.0 billion in managed loans outstanding as of June 30,
2005. Capital One is a Fortune 500 company and, through its
subsidiaries, is one of the largest providers of MasterCard and Visa
credit cards in the world. Capital One trades on the New York Stock
Exchange under the symbol "COF" and is included in the S&P 500 index.
Capital One offers a range of products to meet small business
needs, including small business credit cards, small business loans and
lines of credit, and small business savings accounts. As the largest
issuer of small business Visa credit cards, and the third largest
lender of SBA loans, Capital One provides specialized support designed
to make it easier for small business customers to manage their
finances so that they can focus on what's important to them. Capital
One small business products are available via direct mail,
capitalone.com, phone (877.561.9847) and fax.
BBBTips(TM) is a trademark of the Council of Better Business
Bureaus, Inc. (CBBB) that is used to identify consumer information
articles and brochures that have been developed in partnership with
the Better Business Bureau Consumer Education Foundation, Inc.
BBBTips(TM) are made possible, in part, through the generous financial
and technical support that is provided by corporate sponsors who are
members of the CBBB and of the local BBB where the corporate sponsor
is headquartered. BBBTips(TM) are designed to provide unbiased and
factual information to assist consumers in making informed and
intelligent purchase decisions.
CONTACT: Capital One Financial Corporation
Alison Athay, 206-239-0140
SOURCE: Capital One Financial Corporation