Financing small business
U.S. Army veteran John Rainey of Pleasantville served as an infantry officer from 1982 to 1985.
He then made a transition to the corporate world and worked as a sales manager for United Healthcare.
A sales representative at the insurance company, who also sold therapeutic shoes, introduced Rainey to a woman who owned a medical and durable supply company.
As time went on, Rainey decided to explore the possibilities of owning his own durable medical equipment company. He founded Erra Surgical Supplies in June 2009.
“I laid out a lot of money for licensing fees (the nature of the business requires accreditation from the government), training and needed a loan for the renovation of a store,” Rainey said. “Banks were turning me down and my credit was great. I have a second home in Florida that”™s a mortgage. I have never defaulted ”¦ never had a Chapter 11. The bank said to me, ”˜Your credit is great, but we”™re not giving out these types of loans now.”™”
Rainey contacted the U.S. Small Business Administration (SBA) and was connected to a partner representative at the New York State Small Business Development Center at Rockland Community College in Suffern. He said he was walked through the loan application process every step of the way and ended up qualifying for a Patriot Express Loan; a loan officer at M&T Bank drafted the $100,000 loan and “went out of her way to make sure the backing is correct.”
“I laid out $50,000-plus of my own money between licensing fees, automobile expenses, cell phones and that should all count for a new startup,” Rainey said. “When you”™re dealing with health, it”™s recession-proof. I”™m specializing in therapeutic shoes for diabetics.
“The government should look at the criteria of companies that will help save them money in the long run. If you open a pharmacy or things like that, there is less of a risk than in other businesses. They should look at a business plan and match it.”
Rainey”™s retail store is scheduled to open in November in Washington Heights, but his supplier-based business will cover the tri-state region.