Local First Arizona announced on Apr. 21 that its first Loan Readiness Boot Camp cohort is nearing completion of a six-week virtual program designed to help entrepreneurs prepare for the lending process. Erika Alexander, a certified financial education instructor and graduate of Local First’s We Rise business accelerator, leads the program.
The initiative addresses common challenges faced by new businesses in securing loans, aiming to improve approval chances, secure better interest rates, and encourage informed borrowing decisions. Small businesses are crucial to the economy as they employ about half of private sector workers and generate more than half of U.S. sales.
Alexander said the boot camp begins by helping participants understand how banks operate and what lenders seek from borrowers. “You just expect a bank to feel what you feel about your business,” Alexander said. “They know nothing about you. Absolutely nothing. Banks need business in strategic ways and once you understand that, you understand how to cultivate that relationship and not waste each other’s time.”
The program includes participation from local credit unions familiar with small business needs. It emphasizes the importance of personal finances in loan evaluations, introducing concepts such as the “5 Cs”—character, capacity, capital, collateral, and conditions—that lenders use to assess creditworthiness.
“This isn’t a vibe. The bank isn’t going to give you a loan on a vibe,” Alexander said during one session focused on debt service coverage ratios and income documentation requirements for loans.
She added: “Somehow, we have the misconception that once you have an LLC and an EIN, that all of a sudden out of the ether decision making will become crystal clear.” The course uses interactive scenarios for self-examination regarding financial practices.
“A program like this is invaluable,” she said about participant engagement over six weeks with local partners.
Local First Arizona has additional initiatives supporting entrepreneurs through funding programs such as its Green Loan Fund—which offers up to $25,000 at 3% interest—and micro-loan projects creating jobs in rural counties according to its official website. The organization also promotes social cohesion by supporting LGBTQ+ equality through initiatives like the UNITY Pledge while aiding Indigenous entrepreneurs with specialized funds according to its official website.
Founded by Kimber Lanning—an Arizona native known for research into community relocation trends—Local First Arizona operates from Phoenix headquarters inside Modified Arts on Roosevelt Row with additional offices in Tucson as well as community kitchens across several locations according to its official website. In recognition of two decades serving communities statewide, Gov. Katie Hobbs proclaimed Nov. 4 as Local First Arizona Day in 2023 according to its official website.
Local First Arizona functions independently as both a 501(c)(3) and 501(c)(6) nonprofit entity according to its official website.
