Centennial | Growing up in Kingston, Jamaica, Jimmy Howe couldn’t help but learn the art of great jerk chicken and pork.
So, a few years ago, Howe, who now lives in Centennial, set out to launch a business — Jamaica Me Hungry Tropical Grille — that would allow him to bring those Kingston-honed talents to Colorado eaters.
But he quickly ran into a problem plenty of small businesses have faced in recent years: The post-recession lending market isn’t fond of small startups without much credit history or substantial collateral.
“Obviously I wasn’t a fit, of course credit markets were awful tight,” he said.
But last year, Howe, 46, came across a program from Boston Brewing Company, makers of Samuel Adams Lager, aimed specifically at helping small businesses looking for loans in a tight lending market. The Samuel Adams Brewing the American Dream launched in 2008 and, in partnership with non-profit microlender Accion, has doled out $2 million in loans to 230 small businesses nationwide. The program has also coached more than 3,000 small business owners, and created or saved nearly 1,400 jobs, according to Boston Brewing. The loans are small — between $500 and $25,000 — and can be used for a variety of business purposes.
The program, Howe said, was an ideal fit for him because he didn’t need a massive six-figure loan, just enough to help him get the business started and reserve spaces at food festivals and fairs.
In Howe’s case, that small loan proved particularly tough to get. Lenders turned down his application in part because he didn’t want enough money — a bizarre quirk of the lending market. Smaller loans don’t accumulate a decade worth of interest, so they aren’t all that attractive for a lender. That leaves few options for the smallest of small businesses.
Jim Koch, the founder of Boston Brewing, said he ran into the same problems when he launched his brewing company in the 1980s. The company has since grown into America’s best-selling craft beer and is seen as one of the pioneers of the burgeoning craft beer scene. But those early days were tough, Koch said in an email this week.
“Twenty-nine years ago, I dreamed of starting a brewery, but did not have the means to do so. I tried to get loans from banks, but was turned down every time,” he said.
Beyond those financing difficulties, Koch said he also didn’t know where to turn for “the nuts-and-bolts guidance” that a new independent businessperson needs.
Those two experiences — the need for loans and guidance — inspired the Brewing the American Dream program, he said.
“There are many small businesses that have the same potential I had when I first started out, but similar to my experience, are viewed as ‘too risky’ by traditional lenders. Yet, these are the businesses that are leading the way in job creation and economic growth within their communities,” he said. “It’s important to note that we’re not just slipping a check under the door. The funding we provide goes hand-in-hand with actionable mentorship and real-world coaching from different experts — including our very own employees — on everything from how to sell to a potential retail customer to understanding competitive pricing.”
For Howe, the help he is getting from the program has been vital to getting his company off the ground.
This summer, Howe said he plans to have a booth at several local fairs and festivals, serving up jerk chicken and pork, as well as Jamaican-style cheesesteak sandwiches.
Securing a spot at many festivals requires a down payment several months in advance, and Howe said the money from the program made it possible for him to reserve spots.
“It would have been out of the question. They are large and expensive, but it’s well worth it,” said Howe, who works another job in the structured settlement industry.
Howe said he hopes to grow the business to one day include a storefront restaurant, but he hopes to make it a sort of hybrid, where customers can come to him, but he still participates in festivals and other events to get his food out there.
“That gives you an opportunity to take them to the customers or have them come to you,” he said.