When you apply for a small-business loan, the lender will assess your ability to pay back the loan. The lender will look for collateral (assets), which could cover the loan in case of default. As a future small-business owner, you also want to make sure you can save for the future.

Calculate your current asset total (collateral).

Provide a description of your assets and a total amount. Assets could be Liquid Assets (savings account assets, 401k, stocks, investments, other) or residential property.

Calculate your Retirement Savings

Experts recommend saving 25 TIMES your current annual income for retirement.

Use the following link to assist you with your retirement savings breakdown.

Save 25X Your Current Income Retirement Savings Ratio

Calculate your retirement savings. Show the complete breakdown of your work.

Discuss whether or not you are saving enough each month to have 25 TIMES your current annual income by age 65. What about age 70?

Calculate your Emergency Fund

Do you currently have an emergency fund? Financial experts recommend having at least 6 months of expenses saved up for emergencies. Use the following link to assist you with your emergency fund.

6X Monthly Expenses Emergency Fund Ratio

Calculate 6 TIMES your monthly expenses. Show the complete breakdown of your work.

Determine how long will it take you to save 6 months of expenses based on your monthly savings from Table 1: Monthly Expenses (in Part 1). Show your work.

Name and describe the type of business you plan to open, and state what you believe the startup cost will be.

Business Startup Expenses
Budgeted Category	Category Details	Budgeted Amount
Rent/Mortgage	Rent or mortgage payment, property taxes, repairs, etc.	$
Payroll	Employees pay	$
Insurance	Life, medical, disability, building	$
Utilities	Water, electricity, internet, phone, etc.	$
Marketing	Brochures, commercials, social media, website	$
Inventory	Product, point of sales (POS), etc.	$
Miscellaneous	Donations, other	$
TOTAL		$

Using the financial analysis from Parts 1 and 2 (make sure you include your instructors feedback), calculate exactly how much money youll need to borrow to start up your small business.

Using the financial analysis from Parts 1 and 2, determine if you are ready to apply for a small business loan today, within 2 years or more than 5 years in the future. Explain your answer in 3 - 4 sentences.