April is Financial Empowerment Month, a time dedicated to highlighting the importance of financial education to promote smart money habits and build long-term financial security. This is especially important for small business owners. While entrepreneurs are often driven by their passion to create, be their own boss, and build the business of their dreams, they also face the challenge of managing their finances. But you don’t have to take that task on your own!

Here at Prestamos CDFI, our team of Business Advisors and Lending Experts is here to help you understand your finances, access capital, and make informed decisions to help invest in and grow your business. 

In celebration of Financial Empowerment Month, we asked our team for their top five financial tips for small business owners to help get you on the right path towards financial literacy, independence, and security. 

1. Separate Business and Personal Accounts: 

One of the most common mistakes early-stage entrepreneurs make is keeping all their expenses – business and personal – in one account. While it may seem convenient at first, this strategy can really hurt you in the long run. 

Set your business up for success from the start by separating your accounts and opening a dedicated business account. This will help you stay organized and make tax time much easier!  

2. Pay Yourself First  

You started a business to make money, so make sure you pay yourself first! Paying yourself first includes ensuring you are compensating yourself accurately for your time and effort, as well as putting money aside in a savings account for future investments. 

When you are building out your monthly budget, make sure you are the first expense you account for. From there, you can establish what you have to spend onother business expenses and costs.  

3. Know Your Cash Flow 

Cash flow is one of the most important figures you need to know for your business. It is defined as the amount of money coming in and out of your business over a certain period of time. Generally, this figure is used to determine the financial health of your business. A simple way to think of your cash flow is: 

Cash Inflows (Revenue) – Cash Outflows (Costs) = Cash Flow 

In simple terms, cash flow helps to determine whether your business is profitable, or if you’re operating in the negative and at risk of possible bankruptcy. Knowing your cash flow is especially important if you’re looking to get access to loans or other types of financial infusions.  

4. Stay Organized 

We know you have a million things to track as a small business owner, but prioritizing your finances is key to ensuring the long-term success of your business. Be sure that you are tracking your expenses, sales/earned income, tax liabilities and other key financial figures on a regular basis – monthly is recommended. 

Also be sure to have a designated place and system for any important documents, such as licenses, tax forms, and receipts. This will not only help you during tax season, it will also help immensely if you are ever applying for a loan or working with investors.  

5. Check Your Credit Often 

Credit is one of the most powerful tools you have at your disposal. While you may not have the funds to invest in your business yourself, a strong credit score helps potential lenders determine their risk level when working with you. A strong credit score can lead to better terms, stronger relationships, and can protect your personal credit. 

You can check your credit score easily by using free online resources and then use that to make informed decisions on how to improve or maintain your credit. 

If you’re ready to take your financial literacy and business acumen a step further, but aren’t sure where to start, now’s the perfect time to schedule a call with our team of experts. Our Prestamos Business Advisors are here to help you understand your business, your financials, and the steps you can take to grow. 

Click here to tell us about your needs and get started today!  

PHOENIX – Prestamos CDFI, LLC, a division of Chicanos Por La Causa, has been awarded $90 million in New Markets Tax Credits (NMTC) from the U.S. Department of the Treasury’s Community Development Financial Institutions (CDFI) Fund.Prestamos is a Community Development Entity that provides capital to businesses and community facility projects in highly distressed, low-income communities in Arizona, New Mexico, Nevada, Texas, California and Puerto Rico. Prestamos has received seven previous awards totaling $300 million.

Founded in 2000 by community development corporation Chicanos Por La Causa, Prestamos supports low-income businesses and communities by providing resources and services, dedicating 100 percent of its investment activities to disadvantaged populations.

“We are grateful for the CDFI Fund’s recognition of our work through this NMTC award,” said Jose Martinez, President of Prestamos CDFI. “Our mission is rooted in promoting economic prosperity and essential services in low-income communities across AZ, CA, NM, NV, PR, and TX. This award enables us to continue investing in projects that create quality jobs through domestic manufacturing and reliable job-producing small businesses, while also expanding access to essential community health and education infrastructure.”

 

The NMTC Program attracts private capital into low-income communities by permitting individual and corporate investors to receive a tax credit against their federal income tax in exchange for making investments on qualified projects within economically distressed communities. Created by Congress in 2001, the credit totals 39 percent of the original investment amount and is claimed over a period of seven years. This award is part of a $10 billion NMTC allocation authority package announced this week by the CDFI Fund. Federal data show that for every dollar of allocation provided under the NMTC program, an additional $8 of private investment is leveraged for the economic development of these communities.

What began as a small team managing Chicanos Por La Causa’s Economic Development department throughout rural Arizona has grown into a powerful champion for small business and community investments across the Southwest. As we celebrate 25 years of Prestamos, and reflect on our milestones as a certified Community Development Financial Institution (CDFI), we honor the programs, people and partnerships that have shaped our impact. 

 

Expansion into New Markets 

After becoming a certified CDFI in 2000, Prestamos strengthened its commitment to delivering meaningful economic opportunities to small businesses and underserved communities. This certification enabled Prestamos to operate as a private-sector financial intermediary with a mission centered on community development. From that point forward, our team worked closely with small businesses in both in rural and urban areas, while also focusing on supporting entrepreneurs in lower-income economic areas and communities often overlooked by traditional financial institutions. These efforts brought long-term economic benefits to families, communities and our entire state.  

Still, we knew our mission could reach further. 

 

In 2010, CPLC expanded outside of Arizona for the first time by launching operations in Nevada – with Prestamosleading the way. This expansion allowed us to serve entrepreneurs statewide with access to capital and small business technical advising – increasing both our footprint and our impact. Through programs such as the Clark County Technical & Economic Assistance, the Credit Builder Program and the Minority Business Development Agency, we grew our presence in  both the Las Vegas area and in Northern Nevada, helping business owners gain the support needed to thrive.  

Over the following years, CPLC and Prestamos continued its regional expansion – growing into Texas, New Mexico and California. Through New Market Tax Credit Investments, financial assistance programs and technical support initiatives, we have deepened our impact across the region, ensuring more entrepreneurs have the opportunity tobuild and sustain their businesses. 

 

Technical Assistance Program 

One of the key distinctions of Prestamos is our robust and comprehensive technical assistance (TA) programs. Our support for small business owners does not end with helping entrepreneurs access to capital. We provide a fullnetwork of resources designed to guide, educate and empower business owners at every stage of their journey. 

 Our team of Business Advisors provide individualized mentoring, coaching and guidance on business planning, financial projections, marketing strategies, and more. This integrated approach ensures that business owners are successful from concept to launch –  preparing them for capital investments when they’re ready to grow.  

A major milestone came in 2019, when Prestamos CDFI received its first major Technical Assistance (TA) grant through the Office of Community Service – Social Enterprise (OSC-SE). This grant helped Prestamos expand its capacity to support mission-driven social enterprises focused on creating positive community impact through their products, services and employment practices. It also enabled Prestamos to establish its first full-time TA role, marking an important step in building a dedicated support infrastructure. 

In 2021, our technical assistance efforts grew again with a partnership with the U.S. Small Business Administration through the SBA-Tech program. From FY2021 to FY2024, Prestamos delivered technical support to more than 8,000 micro-entrepreneurs, providing hundreds of trainings focused on financial literacy, marketing, and business strategy. With a dedicated team of bilingual professionals, Prestamos ensures that every entrepreneur has access to the tools, mentorship and confidence needed to succeed.  

Through the SBA-Tech Program and our broader TA initiatives, Prestamos continues to remove barriers to opportunity and foster lasting economic empowerment across the communities we serve. 

 

PPP Impact 

When the COVID-19 pandemic struck in 2020, small businesses across our communities faced unprecedented hardship. The economic shutdowns left  business owners stuggling to cover expenses, retain employees and keep their doors open, forcing some to face bankruptcy or closure. Guided by our mission and deep commitment to community, Prestamos mobilized quickly to meet this urgent need.   

As the Paycheck Protection Program (PPP) rolled out, our team worked around the clock to support business owners in need. The impact was historic. 

In 2021, CPLC Prestamos CDFI was recognized as the #1 U.S. Small Business Administration PPP lender in the nation by number of loans, and #3 lender by total dollar volume. Our team processed $7.6 billion in approved loans through the program, with an average loan amount of $15,526 — and 78% of those loans served minority-owned businesses. 

In May 2024, Prestamos CDFI was honored once again – recognized by the U.S. Small Business Administration as the Microlender of the Year for the 2023 fiscal year by the Arizona District Office. This award underscored our continuedcommitment to supporting small businesses in our community — especially those that face barriers to traditional financing, including those with limited collateral or credit challenges. 

 

Continuing The Journey 

Over the past 25 years, Prestamos has grown from a small Arizona-based team focused on expanding access to capital to overlooked communities, into a dynamic, multi-state organization offering capital, technical assistance, investments and long-term support to entrepreneurs across six states.  

We have witnessed firsthand how investing in small businesses creates jobs, strengthens communities and buildspathways to generational wealth.  

As we look forward to the next 25 years and beyond, we remain committed to our mission and to strengthening our role as a leader in economic development. Prestamos will continue expanding opportunity, empowering entrepreneurs and building a more equitable economic future for all.