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Funding Fundamentals

Are you ready for a loan?

Securing a loan can be a pivotal step in launching, growing, or stabilizing your business, but knowing where to start can feel overwhelming. At Brattleboro Development Credit Corporation (BDCC), we’re here to help demystify the process and set you up for success. Whether you’re a first-time borrower or exploring new funding options, this guide answers the most frequently asked questions about loan readiness and your financing options. Use this resource to better understand your funding needs, prepare a strong application, and connect with the right support for your business goals.

Frequently Asked Questions for Loan Applicants

Introduce yourself and your business with clarity and confidence. Share:

  • What your business does, its value, and goals

  • How much funding you need and how it will help

  • Your plan for generating steady income

Be prepared to discuss your business plan, experience, and any documents that demonstrate your business’s potential. Keep it clear and to the point.

Ask yourself the following questions:

  • Purpose: What will the loan be used for? How will it help your business grow?

  • Repayment: Can your cash flow support loan payments?

  • Terms: Do you understand interest rates, repayment schedules, and fees?

  • Collateral: What assets can you offer? This isn’t always required, but can help.

  • Impact: How will the loan affect your operations, both positively and in terms of repayment burden?

You’re ready when you have:

  • A clear business plan or letter of interest

  • Defined funding needs and uses

  • Financial statements and projections

  • A general repayment strategy and potential collateral

Not quite there? That’s okay! BDCC can support your business development through technical assistance and partner organizations.

Loan processing can take several weeks depending on:

  • Application completeness

  • Relationship history the banking institution or gap lender like the BDCC

  • Timing of Loan Committee meetings

Be transparent if timing is critical—lenders may be able to expedite the process for urgent, well-prepared requests.

That’s a smart mindset. Consider:

  • Consulting with BDCC, SCORE, SBDC, CWE, or SEVCA

  • Evaluating your business’s current financial health

  • Attending an Access to Capital event at BDCC

  • Exploring grants or local funding options

  • Avoiding predatory lenders—look local first

View our Helpful Links page for resources.

  • Term Loans: Fixed interest and repayment period

  • Lines of Credit: Flexible draw-and-repay structure

  • Microloans: Small-dollar loans for new or small businesses

  • Crowdfunding: Online fundraising from many small contributors

  • Grants: Non-repayable funding for specific projects

  • SBA Loans: Government-backed loans with specific requirements

  • CDFIs/Community Lenders: Local or nonprofit lenders like BDCC

Lenders typically review the Four C’s of Credit:

  • Cash Flow: Your ability to make payments

  • Collateral: Assets that secure the loan

  • Credit: Your borrowing and repayment history

  • Character: Your reliability, professionalism, and responsiveness

  • Conditions: This refers to the terms of the loan, including the loan’s purpose, the repayment schedule, and the overall economic environment.

Local Banks and the BDCC may work with programs from SBA and USDA, which can have additional criteria.

  • Timeliness: Communicate promptly and consistently

  • Transparency: Share real challenges—honesty builds trust

  • Commitment: Demonstrate serious intent and follow-through

  • Planning: Allow ample time for processing; last-minute requests are harder to accommodate

  • Kiva is a nonprofit that connects borrowers to global microlenders. BDCC serves as a local partner, helping applicants:

    • Apply and assess project viability

    • Post the loan online for funding

    • Use and repay the loan responsibly

    Kiva is especially helpful for small businesses in underserved areas. BDCC is a trustee for the program statewide. Contact us to learn more.

BDCC provides:

  • A dedicated Business Technical Assistance Provider (BTAP)

  • Entrepreneurial programs and training

  • Support through all business stages

  • Guidance on feasibility, financials, regulations, and operations

Make sure you’ve completed or gathered:

  • Loan Pre-Application & Application

  • Statement of Need

  • Business/Project Plan

  • Budget & Timeline

  • Resume

  • VT Secretary of State Registration

  • Proof of Business Bank Account

  • Personal Tax Returns (Last 2 Years)

  • Income Statements & Balance Sheets

  • W-9 & Certificate of Insurance

  • Credit Report (self-pulled is acceptable)

You may also be asked for:

  • Personal Finance Statement

  • Additional Business Info Questionnaire

  • Proof of ID

  • “No Credit Elsewhere” Form

Start preparing today!
Access this complete checklist and FAQs in one downloadable document.

Interested in learning more? We are excited to hear from you!

For more information or help with getting set up for success, please reach out to Dani Delaini.