News Releases

HARRIS HELPFUL HINTS
Keep Business Thriving in a Challenging Market

CHICAGO, July 30, 2008 – As any seasoned entrepreneur knows, it’s much easier to manage a business during prosperous economic times. With today’s global financial markets under stress, many businesses are experiencing difficulty. The small businesses that are in the best shape are the ones whose owners have taken measured steps to protect themselves and their businesses.

“There is no magic solution that works for every business across the board,” said Emil ia DiMenco, Executive Vice President at Harris. “However, there are things that every business owner can do to gain an advantage, even in a down market. Good cash flow and/or availability against lines of credit can give your business an edge over the competition. During an economic downturn, you want capacity to be opportunistic. Businesses that are cash constrained with no credit available and are concerned with paying bills don’t have the ability to be opportunistic.”

As entrepreneurs evaluate their businesses, especially when approaching a financial institution for a loan or a line of credit, there are several key elements that they should consider to protect their business. If all of the following are in good standing, it’s very likely that the business will be in a position to pursue opportunities – regardless of the state of the economy:

Get Personal
Upheaval in personal lives can often affect business. So, during volatile economic times, business owners are encouraged to protect themselves. Monitoring closely for identity theft is a good idea, as is shredding confidential documents, watching credit reports and tracking activity on personal financial accounts.

Cash Flow
A business with tight cash flow is likely to be one growing very quickly or is unhealthy. While there are many factors that can impact cash flow, it is critical to sustain it. For credit availability to sustain or grow your business, banks and other investors consider the cash generating ability of the business as the primary source of repayment. Banks are unlikely to consider businesses for a loan without positive cash flow.

Collateral
Collateral, the businesses properties and other assets, is typically the second most important indicator after cash flow considered to assess the credit capacity available for a business. Generally, the more collateral options busin esses have the better.

Capital Structure
One of the additional items reviewed to determine the financial strength of a business is its capital structure. That means the ratio of debt to equity. Equity is the owner’s investment in the business. The ability of the business to service its debt (pay principal and interest on time) is critical as well as it having sufficient equity (owner’s investment) to sustain a downturn or unexpected loss.

Credit
Entrepreneurs should always be aware of their credit rating. And if it is less than adequate, take corrective measures as soon as possible. Poor credit history is arguably the biggest red flag when evaluating the health of a business.

Character
Character – the human element - is always a crucial part of any business’ success. Businesses and their owners with a good story and a reputation for doing the right thing with customers and in the community will always have an advantage.

Supplemental Programs
There are numerous Government-sponsored programs that are dedicated to helping small businesses, including many that are components of Harris’ financial solutions. Such programs are made possible working with the Small Business Administration, the Illinois State Treasurer’s office, as well as other State and local entities.

Harris has been helping its customers and the communities it serves for over 125 years and has more than 230 full-service locations and more than 600 ATMs in Illinois and Indiana.

About Harris
Harris is an integrated financial service organization providing more than 1 million personal, business and corporate clients with banking, lending, investing, and wealth management solutions. The organization is a member of the BMO Financial Group (NYSE, TSX: BMO), which also provides corporate and investment ba nking services in the U.S. under the BMO Capital Markets name. For more information, please visit www.bmocm.com or www.harrisbank.com.

Harris^® is a trade name used by various financial service subsidiaries of Harris Financial Corp. Banking products and services are provided by Harris N.A., The Harris Bank, N.A. and their bank affiliates. Members FDIC. Brokerage products are offered through Harris Investor Services, Inc. (HIS), a registered broker/dealer, member FINRA/SIPC, and SEC registered investment adviser. Insurance and annuities are offered through Harris Bancorp Insurance Services, Inc. (HBIS). Securities are provided by BMO Capital Markets Corp. (BMOCM), a registered broker dealer and member NYSE, FINRA and SIPC. HIS, HBIS and BMOCM are affiliated companies and are wholly owned subsidiaries of Harris Financial Corp. Products offered by HIS, HBIS and BMOCM are Not Insured by the FDIC or any Federal Government Agency, Not a Deposit of or Guaranteed by Any Bank or Bank Affiliate, May Lose Value. The purchase of insurance or an annuity is not a condition to any bank loan or service. Financial planning and investment advisory services are provided by Sullivan, Bruyette, Speros & Blayney, Inc., an SEC registered investment adviser. Family Office Services are provided by Harris myCFO, Inc. Investment advisory services are offered by Harris myCFO Investment Advisory Services LLC, an SEC registered investment adviser and wholly-owned subsidiary of Harris myCFO, Inc. Not all products and services are offered in every state and/or location.