MICROFINANCE INSTITUTION BUSINESS PLAN

I. Executive Summary

Company Description

Bridgewell Community Finance (name origin: "bridge" for connection and "well" for sustainable resources) is a mission-driven microfinance institution and fintech platform launching in 2026. We operate in community finance and banking, offering small-business loans, credit-building lines, digital deposit accounts, and high-touch coaching. Our core activities are real-time risk scoring, underwriting, loan servicing, in-person coaching at neighborhood service centers, and partnerships with community organizations and compliant banking sponsors. One-liner: We bridge underserved entrepreneurs to the mainstream financial system with fair capital and hands-on coaching.

We target underbanked entrepreneurs in high-impact urban neighborhoods—minority-owned microenterprises, sole proprietors, and side-business owners earning under $60,000 annually. Short-term goals: open HQ and three service centers in 2026, originate a $3.0M portfolio, and enroll 2,500 clients in coaching in year one. Long-term goals: scale to 50,000 clients and an $80M portfolio by year five while achieving operational break-even and maintaining net charge-off below 3.0%. One-liner: Our growth plan pairs scalable fintech underwriting with neighborhood coaching to deliver transparent, affordable financial services at scale.

Problem

Millions of U.S. entrepreneurs and households are excluded from mainstream banking by rigid credit scoring models that rely on narrow historical data and ignore alternative income patterns. This exclusion cuts off access to working capital and basic banking services, forcing gig workers, immigrants, and low-income families toward predatory lenders that charge high interest and trap households in debt.

Local small businesses and microentrepreneurs lack affordable, scalable credit-building tools and remain sidelined by institutions that overlook nontraditional signals; the result is untapped local economic potential and persistent thin credit files that block wealth-building. One clear fact: current solutions leave a large, credit-worthy population underserved and in need of fair, accessible capital.

Solution

Millions of hardworking Americans and aspiring entrepreneurs lack fair access to banking and credit, keeping them dependent on predatory lenders and blocking small-business growth. Our solution delivers accessible credit, low-fee banking, personalized coaching, and hybrid delivery—digital-first with local service centers—to reconnect underserved communities with reliable financial services. One line: affordable credit plus coaching to build financial stability and credit history.

We offer a suite of products: microloans up to $50,000 underwritten on cash flow and character; credit-builder loans that report payments while holding principal; low-fee checking and savings with basic payments and deposits; and integrated digital lessons plus one-on-one coaching delivered from local centers. This combination reduces barriers, builds credit, and improves repayment without relying solely on FICO. One line: practical products plus human support to create lasting financial access.

Mission Statement

We fuel economic opportunity in underserved communities by providing fair capital and practical financial tools that prioritize clients' future potential over past credit challenges. We commit to being a transparent, trusted partner for entrepreneurs and families, replacing predatory lending with accessible alternatives that build wealth and stability. Our success is measured by the measurable growth and resilience of the neighborhoods we serve.

Key Success Factors

These factors drive our ability to originate quality loans, scale efficiently, and maintain mission alignment.

• Deep partnerships with local non-profits and the SBA that supply a steady stream of qualified applicants.
• Alternative-data underwriting that enables lending to borrowers ignored by traditional banks.
• Lean operations with a $25,000 monthly software budget that keeps unit costs low as we scale.
• Strong community presence that builds trust and supports long-term customer relationships.
• Experienced management focused on achieving a 450.75% IRR while preserving the social mission.

Financial Summary

The financial plan shows a path to sustainable profitability driven by microenterprise lending, reaching breakeven in Dec 2027 and full payback in 53 months.

Financial requirements include initial capital to support loan growth to a $98,500,000 portfolio by 2030, with expected customer deposits of $95,000,000 and cash reserves of $12,000,000; model IRR is 450.75% and long‑run ROE is 0.02.

Overall outlook: profitable growth from 2028 onward with controlled capital and liquidity targets.

Funding Requirements

We require capital to cover 2026 capital expenditures and maintain a minimum cash position to launch operations and scale to profitability.