Accessing Capital

LOANS

YCDA supports business recovery, and we connect small businesses to community-based lenders and loan readiness coaching. Access to capital is crucial for small businesses in Yakima County, as it is for small businesses in any region. Our goal is to help get your business loan ready. 

Getting Started: There are a variety of funding sources available for established businesses. As general parameters, businesses need to meet the following criteria to qualify for loans:

• The company should be at least two preferably three-plus years old.
• The business should be profitable (in particular over the past 12-18 months).
• The company or owner(s) should have collateral to secure loans.
• The company and owner(s) should have a good credit record.

Businesses can access both short-term and long-term loans to support their enterprise. It is very important to use these funding resources appropriately with a business. For example, bank lines of credit are great for covering operating expenses. Lines of credit are a lousy way to buy a piece of equipment though. Businesses need to use term loans to purchase equipment, real estate, and other long-living assets.

To present a strong loan application, businesses should be prepared with the following information to support their request:

• 3 years of business tax returns.
• 3 years of personal tax returns (for all owners with 20+ percent stake in the business)
• Personal financial statements (for all owners with a 20+ percent stake in the business)
• interim financial statements (profit and loss) for the last 60 days
• Company and personal bank statements for the last year
• Current list of accounts receivable and accounts payable
• Copies of legal agreements (articles of incorporation, by-laws, operating agreements, leases, promissory notes, etc.)
• A list of items being funded with loan proceeds (including invoices or purchase orders)
• A financial projection for at least one year
• A brief business plan that describes the company and the proposed expansion project (or loan request)