In summary, a local banker can be a valuable resource to an entrepreneur, even if the loan request is not granted immediately. Another source of debt capital is revolving loan funds, which are most often operated by nonprofit organizations. Access to these funds is frequently contingent on completing a business planning and education process with the nonprofit organization. Such resources provide access to capital for entrepreneurs who are not able to qualify for bank financing. Although this is an important resource, especially for the first-time business owner, it is not a permanent solution.
Resources tend to be limited, and the number of businesses that can receive loans is quite small.
Revolving loan funds are an important tool, but they lack the resources to sustain long-term, significant economic development. Another source of business financing comes through enhancements, which are resources or services that improve the financial soundness of the project. These resources offer an opportunity to make a project stronger by filling gaps in finances or management experience in a proposed business plan. One example of an enhancement is a guaranteed loan program available through a government agency for lending on tribal lands. Many banks offer these programs to their customers since they promote access to capital and result in significantly reduced risk for lenders.