Phyllis Gurgevich with the Nevada Bankers Association offers tips on how the 5Cs of credit help Nevada small businesses access capital.

Looking for capital for your Nevada small business? You’re not alone. According to the 2025 Nevada Small Business Challenges survey, 71% of pre-revenue small business startups mentioned funding their business as one of the top three challenges they faced.

Despite this fact, the Nevada Small Business Development Center identified in its report that 76% of small business owners surveyed did not even apply for small business debt financing. When they did apply, 37% said they were declined for financing.

The Nevada Bankers Association, and our member institutions statewide, are all dedicated to helping small businesses in Nevada start and grow their operations. After all, they’re the true job engines driving the Silver State economy.

How do you know if your business is loan ready? When applying for a loan from a Nevada bank, it’s critical to consider what we call the 5Cs of credit that our industry reviews when deciding to finance a new small business bank loan.

■ Character (and credit history): Evaluates the trustworthiness and likelihood of repayment, often based on the business owner’s credit score, payment history, and credit report. However, it may also take into consideration the payment history of the small business as well.

■ Capacity (and ability to repay): Measures the ability of the small business owner to handle the new debt by comparing income against existing debts, primarily looking at the debt-to-income (DTI) ratio. Some small businesses could also include their cash flow in the calculations.

■ Capital (financial reserves): Represents personal investments, including assets like cash, savings, or investments, and capital invested in the business that show the owner has “skin in the game.” Small business assets could also be considered as part of the small business loan capital requirements.

■ Collateral (assets): Assets, such as a home or car, that small business owners may personally pledge to secure the loan. The equipment, vehicles, real estate, inventory, and other physical assets of the small business may also be leveraged as collateral for bank financing.

■ Conditions (external factors): Refers to the purpose of the loan, industry trends, and the overall small business economic environment in Nevada and nationwide which could affect the ability to repay the loan.

Even small business entrepreneurs with a dream can find Nevada bankers willing to lend them money if they properly prepare their business using the 5Cs as their guide. Sometimes a personal guarantee or use of personal assets as collateral may be required.

However, a local banker can find many different access to capital programs and options for even pre-revenue startup businesses. Working together, the banker as a trusted advisor, and the small business owner can either fund the small business capital needs or create an actionable plan towards getting the business approved as it continues to grow and expand.

Phyllis Gurgevich is the president and chief executive officer of the Nevada Bankers Association. The Nevada Bankers Association is the united voice of Nevada’s diverse banking industry. For more information on the Nevada Bankers Association, visit nvbankers.org.