Fund Business
Structure capital correctly and assemble the package a lender wants to see.
Funding paths (by cost)
- Family gift/0% advance — pre-revenue validation
- SBA Microloan (50K statutory cap) — against equipment
- CDFI direct / Community Advantage — social-impact businesses
- SBA 7(a) Small Loan (350K max) — sized to gate-case DSCR
- Friends/family equity — with governance charter
- Grants — founder programs, local initiatives
Lender package
| Document | Purpose |
|---|---|
| Loan request summary | Who/what/how much/why |
| Pro-forma + DSCR (3-column) | Repayment capacity |
| Sources and Uses (balanced) | Every dollar accounted |
| 13-section business plan | The narrative |
| SBA Form 413 PFS | Borrower credit |
| 3 years tax returns | Income verification |
| Resume | Experience |
| Capital letter | Proof of funds |
| Letters of intent | Partnership evidence |
DSCR rules
- Zero debt before counted revenue (the #1-decline profile)
- Present in 3 columns: $0 / 50% haircut / validated run-rate
- Size to gate-case DSCR >= 1.25x
- Include a funded interest reserve as a named source
- The no-personal-guarantee wall determines maximum debt