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Colorado Lending Source | Jul. 28, 2020

Do you need a business plan and financial projections?

For startups that are in the early stages of building their business, it's essential to have a comprehensive business plan and financial projections in order to receive a loan. It's important for any lender to have a well-rounded understanding of your company, your founders, and what you plan on using the funding for so that they are comfortable and confident with the project.

If your business is less then two years old and generating revenue, you should be prepared to present the following to your lender:: 

    Your business plan must explain what your company is going to do, how it is going to accomplish its goals, and, most importantly, why the founders and the team they surround themselves with, are the right people to do the job. A typical business plan will include a company overview, information about your products and/or services, financial details, a marketing plan, a list of major company milestones, and information about each member of the management team and their role in the company. Essentially, you want to make sure your business plans gives a comprehensive overview of your company so that the lender understands every aspect of what you do.

    The financial section of your business plan must include a financial section. If this isn’t a cash flow projection for the business showing month-by-month projected income and expenses for the business for the next 24 months, please make sure you create and submit one separately. There are many template cash flow projections you can find and download for free (don’t pay for one), and the Small Business Development Centers, SCORE, MiCasa and other resources available to help you start and grow your business, can also provide you with sample templates (see details below). Your month-by-month projections are critical to a complete understanding of your business and the detailed assumptions you used to create these projections are even more critical to a non-profit, character-based lender like Colorado Lending Source.

    Please ensure that you explain in some detail all of your major income and expense numbers and where those numbers came from. THESE ARE YOUR ASSUMPTIONS and will be one of the first things that Colorado Lending Source reviews when working with potential borrowers.

If your business is less then two years old and NOT generating revenue, we suggest that you look into Kiva, which is a crowdfunded loan platform that our office helps facilitate. 

If you don't currently have a lender relationship, check out a list of our 2020 SBA Partner Lenders.

Download: Small Business Loans - Quick Referance

Free or Affordable Resources...

There are a plethora of free or affordable resources for businesses to utilize when building their business plan, financial projections, and assumptions....

SBA's Small Business Tools

The SBA's suite of tools can help you at any stage of your business venture, from initial counseling and business planning to contracting with the government and finding seminars to grow your business. SBA's Business Plan Tool provides you with a step-by-step guide to help you get started.

Learn More

SBA's How to Write a Business Plan Guide

This guide walks prospective small business owners through all the key elements of a business plan and includes business plan templates and information that is more up-to-date and applicable in today’s small business climate. 

Learn More

SBA's 30 Minute Business Plan Tutorial

This course explains the importance of business planning, defines and describes the components of a business plan, and provides access to sample plans and resources that can help you develop a very good business plan.

Watch Tutorial

Small Business Development Center (SBDC)

The SBDC offers free, confidential consulting and affordable training programs. Use their Colorado Resource Gateway which connects Colorado business owners to relevant resources and business development organizations by filtering resources based on Business Life Cycle stage, type of assistance sought, and geographic area.

Find Your Local SBDC 


Score provides free counseling and mentoring and low-cost training for small business owners and entrepreneurs, both in the planning stages or are ready to go to the next level. Click here to check out local workshops and events

Find a Mentor

SBA Section 1112 Update

Additional PPP Information PDF of Cares Act Debt Relief Guide

How to make wire payments