Artificial intelligence is now reshaping small business lending from both sides of the table — how borrowers prepare loan requests, and how banks decide who gets approved. In this episode of Webinar Wednesday, SBDC
Director Kelly Bearden breaks down the three ways AI is changing small business funding: what it means for borrowers preparing a loan package, how lenders are using AI-enhanced underwriting to evaluate risk, and why a business’s AI strategy itself is starting to factor into credit decisions. If you’re new to using AI tools in your business, start with the basics before diving into how lenders are applying it.
Kelly walks through a live example calculating a loan’s true APR, and practical guidance on what to ask AI before meeting with a lender — including where the line is on sharing confidential business information. Before you apply, check to make sure you’re not making one of the top 5 small business loan application mistakes. The episode wraps with an extended live Q&A covering everything from AI hallucinations affecting loan decisions to whether AI could eventually set your interest rate.
This marks the 387th episode of the “Webinar Wednesday” business series that provides news and information helpful to employers and business owners.
Interested in applying AI tools like these directly to your own business? Our advisors can walk you through the process step-by-step at no cost.
The CSU Bakersfield SBDC provides free one-on-one help to small business owners. New and existing businesses can go to https://csubsbdc.com/ for more information or to sign up to meet with a business advisor at no cost.
TIMESTAMPS
00:00 Welcome
02:43 Capital Corridor: AI adoption trends from the Federal Reserve
04:13 Current level of AI use among local small businesses
06:08 What tasks businesses are using AI for
06:35 AI-related challenges: accuracy, ethics, and trust
07:24 Why some businesses aren’t adopting AI yet
07:57 The borrower side: how AI helps you get loan ready
08:20 How long does it really take to get a small business loan?
10:45 The business plan narrative — and why AI alone isn’t enough
12:22 Historical summaries, industry comparisons, and competitor analysis
13:14 Building what-if scenarios into your financial projections
14:30 The lender side: how AI is changing underwriting
14:51 The traditional 5 C’s of underwriting
15:25 How machine learning speeds up lender analysis
17:02 AI-enhanced underwriting: behavior patterns and continuous cash flow
19:37 What the Fed’s Senior Loan Officer Survey reveals about AI and lending
20:51 Alternative and fintech lenders: where AI moves fastest
22:56 Faster capital doesn’t always mean better capital
23:40 Always compare your true APR – https://www.calculator.net/loan-calculator.html
24:19 Real example: calculating a 49.49% APR on a $50,000 loan
27:30 How AI could expand — or narrow — the definition of creditworthiness
29:13 AI as the “world’s fastest no”
30:44 Economic Corner: how AI risk becomes credit risk
30:59 Comparing two companies with identical financials
33:12 SBDC tools to help you get loan ready
33:23 LivePlan: free business planning support
33:49 Vertical IQ: seeing your business the way a lender does
36:17 Confidential, no-cost, no-obligation advising Sign Up – CSU Bakersfield
37:18 Q&A begins
37:24 Q: Are there grants or loans to help adopt AI?
38:21 Q: What if AI makes a mistake and the lender turns me down?
39:46 Q: What should I ask AI before meeting with a lender?
41:32 Q: Can AI prepare my financial projections?
42:15 Q: Can AI write my business plan or loan narrative?
42:38 Q: Are banks actually using AI to approve or decline loans?
43:22 Q: What information can a lender’s AI see about me?
44:11 Q: Is my bank activity becoming as important as my credit score?
44:53 Q: Will AI eliminate loan officers?
46:32 Q: What if I’m in a high-risk industry but have a strong AI strategy?
47:13 Q: Which businesses should be most concerned?
48:32 Q: Could a business borrow money specifically to adopt AI?
49:35 Q: Should I tell my lender that AI threatens part of my business?
50:47 Q: Could AI eventually determine my interest rate?
52:08 Q: Is all this AI talk overblown?
53:10 Q: What could AI tell me about my approval odds before I even apply?