Funding 2 | The Biz Knows

Funding cont...

Grants

With the exception of non-profit businesses and some educational institutions, barring certain criteria is met; the federal government does not provide start-up grants. Depending on the type of business, legal structure, demographics of the owners, etc., there may be small business grants available through state and local programs, non-profit organizations, and other groups. Contact your Small Business Association or Small Business Development Center to obtain details about these programs. One or both organizations exist in most states. Some business types may also be eligible for small business private grants. Check the library’s research section for grant books that can assist in identifying this information.

Loans

There are several loan options available. Owners may consider applying for a personal loan or small business loan to fund the business, whichever provides a lower interest rate. Many local banks are open to finance new businesses since doing so may improve the local economy and increase their clientele. Research to identify banks that offer small business loans, and take note of requirements and specifications. Obtaining a loan from private entities may be an option. The business owner will have to meet with the appropriate individual to see if they are a candidate. There may also be government guaranteed loans available for small businesses. Contact your Small Business Association or Small Business Development Center to obtain details about these programs.

Venture Capital

Venture capital is private equity which can be used as seed money for start-up businesses. The investors are usually risk takers and may be groups of wealthy individuals, government-assisted sources, or major financial institutions.

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