We help entrepreneurs and businesses start, grow and prosper through street-smart business education and assistance



Maximizing your chances of getting that loan by understanding the 5 C’s
by Mike O’Connell, SBDC Director

At the SBDC we work with lots of clients who need capital.  They need capital to start businesses, buy businesses, expand businesses, launch new products, etc.  In my opinion, there is a lot of mystery and myth surrounding the issue of what it takes to get a loan.   A great tool to self-analyze your readiness as a potential borrower is to better understand the “5-C’s” of credit:

1)      Capacity – Does your business produce enough cash to reasonably pay off a loan, in good times and bad?  If you don’t know, the SBDC can help you with business and financial planning to get a better comfort level.

2)      Collateral – Are there assets that can used to help secure the loan, as a safety net for the lender?  Machinery, land, saleable inventory, accounts receivable, etc.?

3)      Capital – What capital do you have as the borrower, both as an initial investment and to help the business weather rough spots? Lenders look much more favorably at loan application where the borrower has some “skin in the game”. 

4)      Character – a key measure of this is your personal credit rating. Please take a little time to correct any discrepancies/errors with your credit rating BEFORE you apply for a loan, it will help.

5)       Conditions – This refers to any special situations related to your application.  For example, if you want a loan to buy a rotary-dial phone business, the lender will probably have many questions to better understand this situation, relative to what’s occurring in the communication industry.

Rarely is an application perfect in all five areas, so as a potential borrower you want to be able to emphasize your strengths, and correct or minimize/explain your weaknesses.  Banks want to lend money, but with the average bad debt write-off at about 1.5%,  banks need to be “right” about 98.5% of the time, so there is little margin for error.   We can help you with classes and consulting to better prepare your loan application, as well as connect you to potential capital resources.  Good luck !

Now Open: NoCo Business Survey 3.o

Now Open: NoCo Business Survey 3.o Northern Colorado economic development focused organizations have been collaborating to understand business challenges since the Stay At Home Order was issued last March. Our previous surveys have helped inform elected officials, design assistance programs at the regional and municipal scale, apply for grant funding to support businesses and workers, and has helped us focus our efforts where we can make a difference to support our businesses. Please share 10 minutes of

Read More »

3 Ways You Can Help YOUR Small Business

3 Ways You Help YOUR Small Business Sign up for FREE support and consulting at the Larimer SBDC. Financials, Marketing, E-Commerce and more. Times are tough, let us help you with your resiliency. Sign up for our Workshops! Our workshops cover multiple areas from QuickBooks, Making Your Business Official, Marketing, Social Media and so much more! Not seeing what you need? Contact us at info@larimersbdc.org and we’ll connect you to the right resource.

Read More »

New Colorado HR Compliance Laws for 2021

New Colorado HR Compliance Laws for 2021     Written by simplyHR  There will be a lot of ‘new’ happening when the ball drops at the stroke of midnight, ringing in 2021. New year. New administration. New regulations. New to-do lists. New resolutions. Some of these ‘news’ we know for sure, and some are still in the works. What isn’t new, is simplyHR wanting to make sure you are always in-the-know of the ‘new’! Here

Read More »

Are You Eligible for The Employee Retention Tax Credit?

Are You Eligible for The Employee Retention Tax Credit?     Written by Paul Mueller The Employee Retention Tax Credit (ERTC) was enacted by The CARES Act in March 2020. Under the original rules, the ERTC was not available to PPP Loan borrowers. As a result, it didn’t attract a lot of attention until recently. As part of the Covid Relief Bill signed into law on December 27, 2020, Congress made two big changes to

Read More »