💼 Session 11: Financing & Loan Readiness

🔍 Overview

This session features a guest speaker from CLIMB Fund, a South Carolina-based Community Development Financial Institution (CDFI) dedicated to providing accessible capital to underserved entrepreneurs. Participants will gain insights into the loan application process, understand what lenders look for, and learn how to prepare their businesses for financing opportunities.

🧠 Learning Objectives

• Understand CLIMB Fund’s Mission and Services: Learn about CLIMB Fund’s role in supporting small businesses and the types of financing they offer.
• Navigate the Loan Application Process: Gain clarity on the steps involved in applying for a loan, including eligibility criteria and required documentation.
• Assess Loan Readiness: Learn how to evaluate your business’s preparedness for financing and identify areas for improvement.
• Develop a Loan Application Strategy: Understand how to align your business plan and financial statements to strengthen your loan application.

📝 Pre-Session Assignments

1. Review CLIMB Fund’s “Before You Apply” Page: Familiarize yourself with the loan application process and requirements.
2. Complete the Application Checklist: Begin gathering necessary documents such as your business plan, financial statements, and tax returns.
3. Draft a One-Page Business Summary: Prepare a concise overview of your business, including your mission, products/services, target market, and financial goals.

📄 Business Plan Focus

This session supports the refinement of your Financial Plan and Funding Request sections by addressing:

• Capital Requirements: Clearly articulate how much funding you need and how it will be used.
• Financial Projections: Ensure your income statements, balance sheets, and cash flow statements are accurate and align with your funding request.
• Loan Repayment Plan: Develop a realistic plan for repaying the loan, demonstrating your business’s ability to meet financial obligations.

📚 Additional Resources

• CLIMB Fund’s Application Checklist
• 15 Things to Put in Place Before Seeking Financing – Due
• The Importance of Business Plan: 5 Key Reasons (freshbooks.com)
• Though note that it is VERY unlikely to get one, here is a list of small business grants

💡 In-Class Activity

• Guest Presentation: CLIMB Fund representative will walk through the loan application process, highlighting common pitfalls and best practices.
• Q&A Session: Participants can ask specific questions about their loan readiness and receive personalized feedback.
• Document Review: In small groups, participants will review each other’s business summaries and financial documents to provide constructive feedback.

GET INSPIRED BY ANOTHER FOUNDER’S STORY!

In this episode of How I Built This, Cathy Hughes shares how she faced rejection from 31 banks before finally securing a loan from the 32nd to purchase her first radio station. Her determination and strategic financial planning transformed that single station into a media empire. Hughes’s insights highlight the critical role of loan readiness, understanding lender expectations, and the impact of tenacity in overcoming financial obstacles.

LISTEN NOW!