When is the right time for a nonprofit to begin investigating access to capital, otherwise known as a loan? Ron Brooks, President of River City Capital, suggests you start the process long before you need funding. You don’t want to start the process of looking for money when you’re ready to expand or need gap funding. During our recent conversation with Brooks, he shared his insights and suggestions. We hope they will help you as you chart the path for your nonprofit.
Saad&Shaw: What are three things small business owners and nonprofit leaders need to understand about accessing capital today?
Ron Brooks: First, capital follows readiness. Lenders want to see that you understand your financial story—how money flows through your business or nonprofit, and how you plan to repay or sustain funding. Second, relationships matter more than ever. Build ongoing relationships with mission-aligned lenders, bankers, and Community Development Financial Institutions (CDFIs) before you need the capital. Third, the capital landscape has expanded beyond traditional banks—CDFIs, crowdfunding, impact investors, and loan participation programs now play a major role. The key is knowing which source fits your growth stage and purpose.
Saad&Shaw: What has stayed the same? How should businesses and nonprofits prepare to apply for a loan—years or months in advance?
Brooks: What hasn’t changed is the importance of sound financial management and documentation. You still need accurate financial statements, tax returns, and a clear plan for how funds will strengthen your operations. Years before applying, focus on keeping clean books, separating personal and business finances, and maintaining healthy credit. Months before applying, tighten your budget, verify that your reporting is current, and prepare to explain your story with both numbers and narrative. A well-organized borrower is always more fundable.
Ron Brooks, President of River City Capital
Saad&Shaw: What size loans does RCC make?
Brooks: River City Capital offers loans typically ranging from $10,000 to $250,000, with flexible terms tailored to business and nonprofit borrowers in low- to moderate-income communities. Our sweet spot is often between $35,000 and $75,000, where capital can make a measurable difference—whether that’s stabilizing cash flow, expanding operations, or funding real-estate improvements.
Saad&Shaw: What is a Community Development Financial Institution (CDFI), and how is working with one different from working with a bank?
Brooks: A CDFI is a mission-driven financial institution certified by the U.S. Treasury to provide capital in communities that traditional lenders often overlook. Like a bank, we underwrite loans and expect repayment. But unlike most banks, we pair lending with technical assistance—helping borrowers strengthen their credit, financial systems, and business strategy. Our goal isn’t just to make a loan; it’s to build long-term capacity and economic impact in the community. You can find a CDFI near you using the CDFI locator.
You can reach Brooks at ron@rivercitycapital.org. River City Capital, like other CDFIs, has a diversity of lending programs with one sure to meet your needs. As always, we ask that God protect America and the world we all live in together.
© 2025 Mel and Pearl Shaw, authors of “Prerequisites for Fundraising Success.” We provide fundraising counsel to higher education, nonprofits, and philanthropy. Video conferencing always available. Visit www.saadandshaw.com.
