Before applying for a loan you should consider how your loan will be evaluated by a bank or other potential lender.

From the SBA website.  Click here for the full page.

In evaluating loan applications, the three Cs of credit are taken into account – character, capacity, and collateral.

1. Character

Character is actually a check on your financial status and personal credit history, including your previous loan payment record. The theory is that people are creatures of habit – if you have repaid a loan on time before, you will repay this one as well. Conversely, if you have defaulted on a previous loan, the danger is that you’ll tend to default again.

Also considered is experience in the type of business you are trying to finance, including level of responsibility, education, and business management training. Lenders are particularly concerned that potential borrowers have a solid understanding of financial record keeping, business credit, the importance of collecting accounts receivable, inventory control and turnover, and marketing their product or service.

If your prior business experience is not relevant to your current venture (for example, if your career has been in the corporate world, and you want to start a restaurant), banks will be leery about your ability to run the new endeavor successfully and thus repay the loan.

2. Capacity

Prudent bankers have always looked first to the cash flow of the business as the way the loan will be repaid, which underlines the importance of preparing a cash flow statement with future cash flow projections before presenting your loan request. Doing so indicates to the lender that you are knowledgeable about the cash coming into your business, and are therefore better able to avoid a cash shortage that would jeopardize making monthly payments.

3. Collateral

While cash flow is the primary source of loan repayment, lenders will want a backup or secondary source as an exit or last resort, should your business not prove profitable. Collateral – defined as “anything of value used as security for repayment of a debt or performance of a contract” – can be real estate, stocks and bonds, savings account passbooks, equipment, accounts receivable, or the cash value of life insurance policies.

Loans Through UFI

The UFI Micro Loan Program can help you get the financial assistance that you need to be a competitive business.

Only UFI graduates may apply for Micro Loan Funds. The loan application package requires a comprehensive business plan including cash flow projections, market research, business organization plans and more.

Requirements and Micro Loan Information

  • Eligible Businesses: For-Profit business with one to ten employees, that have graduated from Planning for Profit course, have a written business plan, and an owner or partner with established credit.
  • Length of Loan: Up to five years
  • Ineligible Uses of Loan: Purchase of land or buildings, or refinancing loans
  • Amount of Loan: $5000 to $15,000
  • Interest Rate: Not greater than prime plus 5%
  • Other Requirements: Credit counseling, if applicable.
  • Business Location: The business must be in one of the following counties in West Virginia – Cabell, Wayne, Lincoln, Boone, Mingo, Logan, Putnam, Mason and Kanawha.

For more information on Micro Loans call UFI at (304) 697-3007.

Amortization Chart

SBA Express Loan through Borrego Springs Bank

Who is Eligible?

All SBA eligible businesses and/or borrowers

Loan Features:

  • Loan is fully amortized with no access fees per transactions
  • Automated process provides fast turn-around time
    • Loan amounts of $5,000 to $50,000
    • 7 year term – Fully Amortized
    • Collateral may not be required
    • Variable Interest Rate based on Wall Street Journal Prime, adjusted calendar quarterly:
      • Loans of $ 5,000 – $25,000 at Prime + 4.75%
      • Loans of $26,000 – $50,000 at Prime + 3.75% – 4.75%
      • Loans of $51,000 – $100,000 at Prime + 4.5%
    • $525 packaging fee – deducted from loan proceeds.
    • SBA Guaranty fee of 2% of the guaranteed portion (85%) of the loan will be deducted from the loan proceeds
    • Loan payments automatically drafted from the business checking account at your established financial institution
    • No prepayment penalty – 21 day payoff notification required
    • Technical Assistance Included – borrowers receive pre-and post loan closing management and technical assistance

For more info click here

KIRSA SBA Micro Loan

KISRA is the only organization to become a certified statewide lender under the U.S. Small Business Administration’s micro loan program.

The program provides financial assistance to women, low-income individuals, minority entrepreneurs and other small businesses that need loans ranging from $5,000 to $50,000. The program is open to entrepreneurs who generally do not qualify for conventional loans or other, larger Small Business Administration-guaranteed loans.  For more information contact Patricia Scott at or 304-768-8924 x203

Click here for more info