The business plan serves as the roadmap for your venture and is essential to secure financing. The proposal should be able to clearly articulate the business concept and operations, organization and management, the market and competition, your funding request and financial projections. The proposal package should include supporting documentation of personal tax returns, resume, credit report, licenses and permits, proposed leases and any customer letters of intent.
Tax Tip – For tax years beginning in 2010, you can elect to deduct up to $10,000 of business start-up costs, with any remaining costs to be amortized over future years.
Once you have developed your business plan, the business loan application process begins at your local bank. A Small Business Administration loan is issued at the bank level and guaranteed by the government, should you default. In D.C., the Capital Access Program Act of 2005 distributes federal funds encouraging banks to underwrite loans to local businesses and non-profit organizations at a higher risk threshold than conventional lending.