Loans

Loans are a type of debt where one party, the lender, provides money to another party, the borrower, with the agreement that it will be repaid later. They can be obtained from various sources like traditional banks, credit unions, and online lenders. These loans can be used for various purposes like startup costs, working capital, and business expansion.

Loan Readiness - Loan readiness refers to the state of being well-prepared and equipped to successfully apply for and receive a loan. It involves having a solid business plan, strong financial statements, and a healthy credit history. Essentially, it's about ensuring your business or personal financial situation aligns with lender requirements and demonstrating the ability to repay the loan.

• Financial Documents required by a lender may include but are not limited to the following:
  • Personal Bank Statements
  • Tax Returns
  • Financial Statements (balance sheets, profit & loss statements, etc.)
  • Business Plan
• Loan Considerations may include the following:
  • Character (Credit History)
  • Capacity (Debt-to-income or DTI ratio)
  • Capital (cash on hand)
  • Collateral (assets e.g., property or equipment)
  • Conditions (purpose of the loan, amount, interest rates)

Government programs

• Virginia Small Business Financing Authority (VSBFA)
• U.S. Small Business Administration (SBA)