Seems like a daunting topic, right? Well, there are plenty of ways for you to finance your small business. In the following article we will discuss grants, loans, and more.
Grants are available for small business that are non-commercial, meaning that they must be non-profit organizations or educational institutions. If this applies to your small business, check your local and state programs to see if they have grants available. If not, federal and state governments offer assistance in small business owners obtaining low-interest loans and venture capital financing from commercial lenders. Although they may seem unobtainable, it would be worth a few minutes of your time to research and see if your business is eligible.
First off, there are plenty of loans out there and one is destined to fit your needs. Whether you are working to start, expand, or continue your business, there is a loan for you. To start this process you should visit your local bank or lending institution that participates in SBA (U.S. Small Business Administration) programs.
A microloan would be a great option for small businesses that are start-ups, newly established, or growing. The money for a microloan must be used for working capital, inventory or supplies, furniture or fixtures, machinery or equipment. The maximum repayment term for an SBA microloan is six years.
For businesses that are already established and looking to expand, you should consider looking into the 7(a) small business loans by SBA. To be eligible for a 7(a) loan your business must operate for profit, be small (as defined by SBA), have reasonable invested equity, use alternative financial resources before seeking financial assistance, be able to demonstrate a need for the loan, use the funds for a sound business purpose, not be a delinquent on pay existing debt obligations to the U.S. government. There are special circumstances which may apply to you in which case I would recommend that you research the 7(a) loans and find out more.
Disaster happens! Need a loan? SBA has you covered. These loans are available to business owners that are victims of disaster, or to businesses that are in a declared disaster area (probably not applicable to Tucson). They are also available to assist small businesses, small agricultural cooperatives, and nonprofit organizations to recover from economic losses which resulted from physical disaster or an agricultural production disaster. Disaster loans allow you to restore your property to its preexisting condition, under special circumstances the loan may be eligible to protect your building from future disaster. However, it cannot be used to upgrade or expand the business unless it is required by local building codes.
If you’re feeling overwhelmed and don’t know where to get started, this is the perfect resource.
We are a student non-profit organization. We apply our time and knowledge to helping solve business and non-profit challenges. This blog contains information we've synthesized from research relevant to small business owners looking to improve his or her business.