Small Business Lending Academy
Securing funding can be a daunting task even for the most experienced of businesses. To address this challenge, the Arizona Commerce Authority has designed the Small Business Lending Academy. This comprehensive seven-week program is designed for Socially and Economically Disadvantaged Businesses (SEDI) and Very Small Businesses (VSBs) to assist in generating the proper documentation for a microloan (under $50,000).
The program is competitive, and has business experience and time requirements. Admittance into the program is by application only and the program is offered at no cost, with an approximate value of $1,000 per participant. Space is limited due to the content and design of the program.
Applications for the Small Business Lending Academy are open now through Friday, September 20, 2024.
Cohort Dates
September 2: Applications Open
September 5: Information Session
September 20: Applications Close
Sept. 23 - Sept. 26: Applications Reviewed
Sept. 27 - Oct. 3: Applicants are selected and notified
October 9: Week 1 - Introduction to Lending
October 16: Week 2 - Understanding Debt Lending
October 23: Week 3 - Drafting Your Business Plan
October 30: Week 4 - Drafting Your Business Plan
November 6: Week 5 - Drafting Your Business Plan
November 13: Week 6 - Prepare to Pitch Your Business Plan
November 20: Week 7 - Pitch Your Business Plan and Graduation
About The Lending Academy
Participants will benefit from the expertise of financial and lending professionals who will help guide them through completing a micro-funding loan packet and preparing a lean business plan. This seven-week program will assist in generating accurate financial statements, character and a business plan.
The Small Business Lending Academy program will assist participants with the following:
- Preparation: Microlending requirements differ from higher value loans. Experts in the field of Microlending will educate participants on the requirements for a micro-loan packet.
- Accountability: Consistent instruction and program design gives participants the structure they need to complete the cohort within the 7-week timeframe.
- Expert Mentors: Financials are a pivotal part in any loan application. The ACA has contracted with accounting professionals to help your business prepare for funding through necessary financial statements in personalized one-on-one sessions.
- Character Building: Micro-lending focuses on the character of the applicant and their story. Participants can display their dedication and willingness through developing a lean business plan. Participants will also be instructed how to present their lean business plan with confidence.
- Planning for the Future: At the conclusion of the program, most participants will have a completed micro-loan packet, ready to submit for funding. They will also have developed a roadmap for tracking their finances. This develops positive financial habits well beyond the program and funding, giving businesses the opportunity to evolve and scale.
Businesses that properly complete the program will have a micro-loan packet that contains:
- Lean business plan & verbal presentation of plan
- 12-month business projections
- Year-to-date Projected Profit and Loss Statement
- Year-to-date Balance Sheet
- Financial structure and programming for the future
Having completed documents does not guarantee a lender will disburse a loan to the business, even after successful completion of the program. Each business can be in a different lifecycle and individual results may vary.
Requirements:
For businesses to apply, they must meet the following requirements below:
- Preparing to seek a business loan under $50,000
- Yearly gross revenue under $250,000
- Must be in business at least 2+ Years (active, not just established)
- Be a Socially Economically Disadvantaged Individual (SEDI) OR Very Small Business (VSP - Under 10 employees)
- Two years of personal federal income tax returns and the previous year's business tax return
- Must be located in Arizona
- Currently have a financial system in place to track business expenditures and income (ex: QuickBooks, FreshBooks, Xero, Wave, business accountant, etc.)
If your business does not meet these requirements or you are a business looking for assistance getting started, please review the small business checklist for more information.
Cohort Curriculum
Week 1
Introduction to Lending
The Small Business Lending Academy cohort is a fast-paced, seven-week program. During the kick-off session, participants will be introduced to program expectations, timelines, communication protocols and instructors. Participants will also register for Google Classroom and access their online materials.
- Q&A: Participants will have the opportunity to ask any questions they have about the program's expectations.
- Scheduling Intake Sessions: A crucial part of the program is connecting with your accounting professional. The first task will be to arrange an intake session with the contracted accounting entity.
Week 2
Understanding Debt Lending
Cohort Meeting: Participants will learn more about the debt lending process and how to request the correct amount of funds. Other concepts will be discussed such as collateral, debt schedules, repaying debt and leveraging debt. Lending requires general financial documentation. Participants will compare these requirements to their current financials.
Week 3-5
Drafting Your Business Plan
Week 3: Participants will learn about the importance of a business plan and its various components. They will understand what is needed in their business plan for successful submission and presentation in Week 6. Participants will learn and construct their lean business plan on the topics of Identity, Problem, Solution and Target Market(s).
Week 4: Participants will continue to fine tune parts of their business plan. These sections will include competition, revenue streams and marketing.
Week 5: Participants will finish the last parts of their business plan. These later sections will include expenses, team roles and milestones.
Weekly Accounting Sessions: Meet one-on-one with a financial advisor from weeks 3-5 for personalized financials.
Week 6
Prepare to Pitch Your Business Plan
Participants will finalize business plan components and prepare for the final week’s presentation. Presentation concepts will be taught during this session.
- Office hours for any questions regarding financial statements and pitch practice will take place. Business plan verbal explanations are just as valuable as the content within a business plan. Participants will want to take advantage of fine tuning their explanations and aligning content.
Week 7
Pitch Your Business Plan and Graduation
Business plan presentations: Participants will present their business plan (3 mins) in front of a review committee that will give meaningful feedback and expertise.
Graduation: Participants that complete the program will receive a certificate of completion from the Arizona Commerce Authority.