The preparation process begins with Phase One training, which the student must complete independently before working one-on-one with a master trainer.

This phase serves as a filter.

Steve explains that Phase One helps test:

• Perseverance

• Determination

• Diligence

These traits matter because entrepreneurship requires sustained effort, not shortcuts.

Students are asked to complete the training on their own and come back with questions. This establishes a baseline understanding and reveals whether the student is willing to do the work without being carried through it.

Once Phase One is complete, the master trainer begins working directly with the student.

This stage:

• Happens one-on-one

• Can be in person or online

• Takes a minimum of three months

• Often lasts three to six months

Steve stresses that this process is not a race. Students need time to absorb what they are learning, not just move through material quickly.

The goal is understanding, not completion.

As part of the curriculum, students are required to complete extensive homework. This includes researching answers to roughly 35 questions related to their business plan.

But the key point is not completing the homework—it is how the homework is done.

Before entering any information into tools or systems, the master trainer should meet with the student to:

• Test their assumptions

• Challenge their conclusions

• Confirm that real research was done

Steve cautions against students who simply “check boxes” to move forward. The quality of research directly affects:

• The quality of the business plan

• The likelihood of success

• The strength of the loan request

This phase alone may take a couple of months, and Steve encourages taking the time required.

Once homework is complete and reviewed, the student enters information into Biz Tools, which generates reports used to evaluate the loan.

Steve gives a strong warning here:

A green result does not automatically mean approval.

Biz Tools are designed to guide conversation, not replace judgment. If incorrect assumptions or poor data are entered, the outputs will reflect that.

Key principles for using tools:

• They support evaluation, not decide outcomes

• Green, yellow, or red results require discussion

• Yellow or red does not mean failure—it means more work

Tools are only as good as the information put into them.

If a loan request comes back yellow or red, the answer is not to give up.

Instead, the master trainer should work with the student to:

• Identify weak assumptions

• Improve research

• Adjust the structure of the loan

Steve notes that one of the most effective adjustments is lowering the loan amount.

Reducing the amount often:

• Lowers risk

• Forces focus

• Improves the chances of success

Iteration is part of preparation. The goal is to refine the deal until it truly makes sense.

One of the strongest principles in the episode is this:

If the master trainer has any doubt that a loan might be rejected, it should not go to loan committee.

Steve explains that the master trainer should only recommend a deal when they are confident the committee will say yes. Loan committee exists to provide a final review, not to decide whether basic preparation was done.

If the deal is still yellow or red, more work is required.

When a student is finally ready to present, the presentation should be simple and clear.

Steve outlines five questions that must be answered:

• Who – Who is the borrower and what experience do they have?

• What – What problem is the business solving?

• Where – Where will the business operate?

• When – When will the business launch and when are funds needed?

• Why – Why does this business exist?

The “why” includes both:

• The business purpose

• The student’s kingdom vision

There is no single correct answer for the kingdom vision. The committee simply wants to understand how the student is thinking.

Loan committee members will naturally ask about assumptions.

Students should be prepared to explain:

• Where assumptions exist

• Why they believe those assumptions are valid

• What work they did to test them

Steve also recommends that students practice their presentation with the master trainer before appearing before committee.

Preparation does not stop when the paperwork is finished.

Steve emphasizes that common sense should guide the entire process.

Loan committee members should ask:

• Does this make sense?

• Can the student explain it simply?

• Do we understand the market and customer?

• Does the math add up?

• Can the loan reasonably be repaid?

The collective wisdom of the group exists to protect the group.

This shared discernment is a safeguard, not a formality.

When preparation is done well:

• Students are confident

• Presentations are clear

• Committees are aligned

• Approvals are straightforward

Loan committee should feel like a final confirmation, not a stressful negotiation.

That outcome depends entirely on the work done beforehand.

Preparing students for loan committee protects:

• The student

• The lender

• The integrity of the process

By slowing down, testing assumptions, challenging ideas, and using tools wisely, master trainers create better outcomes for everyone involved.

The next episode, Steve notes, will go deeper into the loan committee process itself.

Watch the full episode here: https://youtu.be/OkNS9K8dYBg

Join the mission: https://www.ibam.org
Read Series 1 here:  https://www.ibam.org/the-7ibam-loan-principles-that-protect-kingdom-capital-for-the-long-term-series1