42 ©2018 WASHINGTON DC ECONOMIC PARTNERSHIP BUSINESS FINANCING
• DC BIZCAP - COLLATERAL SUPPORT PROGRAM
Provides funds for deposit with a participating lender
to cover the borrower’s collateral shortfall.
• DC BIZCAP - LOAN PARTICIPATION PROGRAM
Helps a lender make loans to small businesses by
enhancing the lender’s ability to improve liquidity and
reduce credit risk.
• DC BIZCAP - INNOVATION FINANCE PROGRAM
Provides capital for investment in District of Columbia
start-ups and emerging companies that seek financing
alternatives to traditional commercial financing.
SBA can help facilitate a loan with a third-party lender,
guarantee a surety bond, or help find venture capital. Visit
sba.gov/funding-programs for more information.
INITIAL CONSIDERATIONS
In order to determine how much business financing is
needed and available, business owners will need to assess
current resources, complete financial documents and obtain
a credit report.
CURRENT RESOURCES
It is important to evaluate current resources before turning to
outside financing. Business owners should take inventory of
the financial resources that they may already have available,
including personal savings, personal assets, loans from family
members and friends, trade agreements with vendors or
suppliers, retirement accounts and credit cards. Review the
chart on page 43 for more information.
BUSINESS FINANCIALS
The financial section of a business plan is critical to attract
investors and secure funding. Use the online financial
tools provided by the District of Columbia Department of
Small and Local Business Development, dslbd.dc.gov, or the
Department of Consumer and Regulatory Affairs,
dcra.dc.gov, to gain a solid understanding of financial
positions and related goals. In addition, Service Corps of
Retired Executives (score.org) offers workshops to teach
entrepreneurs how to create a profit and loss statement.
After financial documentation is in order, the business plan
must be reviewed to ensure that expectations and projections
achieve the following:
• Support business goals and are realistic;
• Show how company will exponentially grow;
• Identify plan to minimize financial risks; and
• Demonstrate clearly a plan to repay investors or lenders.
CREDIT REPORT
Regardless of whether a business owner is going to rely on
current resources or obtain commercial financing, a copy of a
credit report will need to be obtained for several reasons:
• Accuracy can be ensured by reviewing the report before
potential investors or suppliers review it.
• Outstanding issues related to previous debt can be
identified before suppliers or potential investors become
aware of the issues.
• Family and friends are able to see that their investment is
being treated professionally.
• Positive payment history is able to be shared with
potential suppliers and investors.
Obtain credit reports online or by phone through one of the
following businesses:
EQUIFAX
(800) 685-1111 · equifax.com/business
EXPERIAN
(888) 397-3742 · experian.com/small-business
TRANSUNION
(800) 888-4213 · transunion.com/business
The Fair and Accurate Credit Transaction Act allows
individuals to obtain one free copy of a credit report from
each of the three major credit bureaus every 12 months. For
more information visit annualcreditreport.com.
BUILD AND IMPROVE YOUR CREDIT
If a business owner's credit score is not as high as they
would like, or they do not currently have much credit,
owners may contact a community-based organization to
receive one-on-one credit counseling and apply for small
loans to help build credit.
/funding-programs
/dslbd.dc.gov
/dcra.dc.gov
/(score.org
/business
/small-business
/business
/annualcreditreport.com