Capital Readiness Diagnostic

FSC First × Bowie Business Innovation Center · Cohort 8
0 / 18
Welcome

How Ready Are You for Capital?

This diagnostic scores your readiness across the 18 documents FSC First reviews when evaluating a loan. Takes about 5 minutes.

How Scoring Works

For each document, rate your current status:

  • Have It — Document is current, complete, and ready to submit (3 pts)
  • In Progress — Started but not complete or needs updating (2 pts)
  • Don't Have It — Haven't started this yet (1 pt)
  • Not Sure What This Is — Need guidance on what's required (0 pts)

What You'll Get

A personalized readiness score with category breakdowns, gap analysis, and a prioritized action plan with direct links to FSC First resources.

Remember: Cash Flow, Not Credit Score

FSC First is a CDFI. They evaluate your ability to repay through your Debt Service Coverage Ratio (DSCR) — your Net Operating Income divided by your total debt payments. Target: 1.25x or higher.

Category 1 of 6

Tax Returns & Financial Statements

FSC First reviews 3 years of tax history and current financial statements to understand your business performance.

Tax Returns

Personal Tax Returns (3 Years)
Complete IRS Form 1040 with all schedules for the last 3 filing years
File your personal taxes or request transcripts from the IRS at irs.gov/get-transcript. FSC First needs all schedules — not just page 1.
Business Tax Returns (3 Years)
Form 1120, 1120-S, 1065, or Schedule C depending on entity type
Contact your CPA or tax preparer. If you haven't filed, this is a critical blocker — FSC First cannot proceed without tax history. FSC First Resources →

Financial Statements

Year-to-Date Profit & Loss Statement
Revenue, COGS, operating expenses, and Net Operating Income (NOI) — the number FSC First uses to calculate your DSCR
Your P&L is essential — it shows your NOI which drives the DSCR calculation. Use QuickBooks, Wave, or ask your bookkeeper. FSC First Resources →
Current Balance Sheet
Assets, liabilities, and owner's equity — shows business net worth and current ratio
Generate from your accounting software. Shows FSC First your business's financial position — current ratio (assets÷liabilities) should be above 1.0.
Category 2 of 6

Bank Statements

FSC First reviews recent bank activity to verify cash flow, confirm revenue, and check for overdrafts or co-mingled funds.

Business Bank Statements (3 Months)
Most recent 3 months from your dedicated business account — FSC First checks for consistent deposits and no overdrafts
Download from your bank's online portal. If you don't have a separate business account, open one immediately — co-mingled accounts are a top package killer.
Personal Bank Statements (3 Months)
Most recent 3 months from your primary personal account
Download from your bank's online portal. FSC First uses these to understand your complete financial picture.

warning Package Killer: Co-mingled Accounts

Running personal and business expenses through the same account makes it impossible to calculate true business cash flow. Separate your accounts before applying.

Category 3 of 6

Projections & Assumptions

FSC First needs to see that you understand where your business is going and can justify the numbers. The assumptions narrative is often the difference between approval and denial.

Year 1 Monthly Projections
Month-by-month revenue and expense forecast for the first year — include seasonality if applicable
Build from your actual historical data. Show month-by-month to demonstrate you understand seasonal patterns. FSC First Resources →
Year 2 Annual Projection
Annual summary for year 2 showing growth trajectory
Year 2 can be an annual summary. Growth assumptions should be conservative and tied to specific strategies.
Cash Flow Statement
Shows operating, investing, and financing cash flows — demonstrates actual cash available
Profit ≠ Cash. Your cash flow statement shows when money actually moves. Generate from your accounting software or build from bank statement data.
Assumptions Narrative
Written explanation of HOW and WHY you expect the projected numbers — cite contracts, market data, or historical trends
This is your secret weapon. For each major line item, explain the "why" — cite signed contracts, LOIs, historical growth rate, or market research. FSC First Resources →
Use of Funds Breakdown
Specific dollar amounts showing exactly how loan proceeds will be deployed
Be specific: "$50K equipment, $25K inventory, $25K working capital" — not "business expenses." Vague use of funds is a top package killer.
Category 4 of 6

Legal & Ownership Documents

These prove your business is legally established, in good standing, and properly structured.

Certificate of Good Standing
From your state of incorporation — must be dated within 90 days of application
Order from your state's business filing office (SDAT in Maryland). Must be recent — an expired certificate will delay your application.
Articles of Incorporation / Organization
Your original formation documents filed with the state
Request a certified copy from your state's business filing office. If you're a sole proprietor, you may need a DBA registration instead.
Business Licenses & Permits
All required local, state, and federal licenses for your industry
Check SBA.gov for requirements by industry and location.
EIN Verification Letter (CP 575)
IRS confirmation of your Employer Identification Number
If you lost your CP 575, request a 147C letter from the IRS at 1-800-829-4933. You can also apply for a new EIN at irs.gov.
Category 5 of 6

Personal & Additional Documents

These complete your lending package with personal financial disclosure and identification.

Personal Financial Statement (SBA Form 413)
Lists all personal assets, liabilities, and net worth — required for all owners with 20%+ stake
Download SBA Form 413 from sba.gov. Include all real estate, investments, vehicles, and debts.
Government-Issued Photo ID
Valid driver's license, passport, or state ID
Ensure your ID is current and not expired. A clear scan or photo of both sides is typically sufficient.
Business Debt Schedule
List of all existing business debts: lender, balance, monthly payment, interest rate, maturity date
Create a simple spreadsheet: Lender | Original Amount | Balance | Monthly Payment | Rate | Maturity. This feeds directly into the DSCR calculation.
Category 6 of 6

DSCR Quick Check

The Debt Service Coverage Ratio is how FSC First determines if you can repay the loan. Enter your monthly numbers to see where you stand.

Revenue minus operating expenses (from your P&L)
All current business loan/lease payments
Expected payment on the loan you're applying for
—
Enter your numbers above

What Your DSCR Means

  • 1.25x or higher: Strong — you generate 25%+ more income than needed for payments
  • 1.00x – 1.24x: Marginal — you can cover payments but with little cushion
  • Below 1.00x: Gap — your income doesn't cover payments yet
Your Results

Capital Readiness Score

—
out of 54

track_changes Your Priority Action Plan

Ready to Move Forward?

Start building your package with FSC First's resources and programs.

Start Your Application →

Contact

Jasmine Forbes — FSC First Lending
fscfirst.com · Apply Online

Raymond Green — Bowie BIC Program Manager

Start