It is not always easy for a business to get loan finance when it's new on the block, especially as a start-up that is unable to prove its income. Finance can sometimes be an issue for expanding businesses, too.
But because Community Futures is a non-profit economic development organization dedicated to helping businesses get established and grow, it may be able to help.
To apply for a loan of anything up to $150,000, you need to have a viable business plan.
Community Futures will help you draw one up. Staff at its local offices can advise on the preparation of business plans and they often run short, practical courses on many other aspects of becoming an entrepreneur – or growing an existing enterprise. You will also find plenty of relevant literature and reference material freely available to help you.
Once you have prepared your plan, staff will be happy to review both it and your draft loan application before you submit them officially. They will do this because they want to be sure your idea is sound, that it has earning potential, and that the risk to Community Futures in lending you money is reasonable.
To get all of this right may take several weeks, but that's time well spent. It ensures you have thought through all the issues and that you have a sound project. The bottom line is that Community Futures wants you to have a winning idea!
A committee of local businesspeople – many just like you – will then formally consider your application. If they approve it, the loan will normally be for up to five years, but can be longer.
If your business goes on to do as well as we all hope, you might want to pay some or all of it back early. That's fine – there will be no penalties and, of course, you will save cash on interest payments. But if it takes time to settle in, Community Futures will work with you to resolve any difficulties along the way. It's a win-win either way.
