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Contact Information

Kathy GilmanProgram DirectorWashington Access Fund100 S. King StreetSuite 280Seattle, WA 98104206-328-5116888-494-4775 (TTY)kathy@washingtonaccessfund.org

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Washington Access Fund Programs• Low interest (5.00%) business equipment loans

for micro and small businesses (up to $10,000 for startup businesses, $25,000 for existing businesses) We are a direct lender

• Credit builder loans (up to $500)• Low interest loans (5.00%) for Assistive

Technology (AT) (up to $25,000)• CCTV Rental Program• Individual Development Accounts (IDA) – matched

savings for AT or business equipment purchases• Financial health assessments and referrals to

financial education• Business plan classes and 1-on-1 assistance

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Business Loans

Application process consists of:• Application packet• Business Plan - We will work with

applicant to complete a business plan.

• Credit report. Credit builder loans up to $500 available

• Review and decision by Loan Committee

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Business Loans

• For a start-up, generally evaluated as a consumer loan, but with business feasibility in mind.

• Different levels of planning required depending upon the loan amount:• Up to $500, feasibility outline and

description• Up to $1500, basic business plan• Over $1500, “complete” business

plan

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Keys to Business Planning(General feasibility considerations)

1. Do they have a clear idea and passion, at least some experience in the field?

2. Do they know what it means to run a business (pros and cons, what it means to be an entrepreneur)?

3. Do they have a Support Network?4. Did they write a Business Plan and do the

research themselves?5. Do they know their personal financial

situation, including benefits planning?

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A business plan is important because:

• it’s a necessary part of any loan or grant application.

• it tells others that you have really thought about and planned the business

• it helps you make good business decisions.

• You are trying to convince a group of strangers to loan you money

What I tell clients/applicants about developing a Business Plan

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Parts of the Business Plan

Business Description• Mission Statement• Business Goals• Owner’s Qualifications• Entrepreneurial Traits• Business Structure• Business Licenses• Business Insurance• Target Market

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Business Description Red Flags

•Goals that are too broad or unrealistic, or do not relate to the plan at hand•Limited or no qualifications for making the product or providing the service•Not having the license and insurance in place•Describing your target market as “everyone” or otherwise too broadly

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Parts of the Business Plan

Market Research – researching your:• Competitors, Customers, and the

IndustryRed Flags:•Saying “I don’t have any competition”•Limited information about competition

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Parts of the Business Plan

Cost Analysis• Start up costs• Operating costs (overhead, or fixed)• Variable costs (cost of goods sold)• Start up capital requirements

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Cost Analysis Red Rlags

Cost Analysis• Asking for the maximum loan amount (or

any amount) without an explanation of how it will be used

• Not having all the funding necessary to launch in place

• Incomplete profit analysis

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Parts of the Business Plan

Financial Projections• Pricing• Sales Projection• Income and Expense Projection• Cash Flow Projection• Break even point

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Financial Projection Red Flags

• Unrealistic high sales volume right away• Sales units don’t match the narrative• Time needed to make or provide the

service doesn’t match the numbers• Unrealistic timeline• Poor credit history

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Parts of the Business Plan

Marketing Plan• Target Market • Marketing Message• Marketing Materials• Marketing Methods• 6 – 12 month Marketing Plan• Elevator Speech (presentation)

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Marketing Plan Red Flags

• Lower price than competition is the main plan• Not using social media• No website• “if I build it they will come” attitude• Target market too broad• No plan beyond the friends and relatives

approach

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Parts of the Business Plan

Record keeping• Records to Keep• Income & Expense Statement• Benefits Planning• Balance Sheet• Filing System• Tax considerations

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Record keeping Red Flags

• No records of sales• Incomplete expense info• No business bank account• No benefits planning