Category Archives: Securing Financing for a Small Business

Guidance on securing financing for a small business idea.

How Can SBA.gov Help Me with My Small Business?

June 5, 2014 SUASB Leave a comment

SBA.gov is a website where prospective and existing small business owners can come for help. It’s divided up into several sections including starting and managing a business, getting loans and grants, getting contracts and seeking local assistance. Learn more about how SBA.gov (The Small Business Administration) can help you launch your small business and find long-term success.

Information and Advice

One of the main reasons why prospective small business owners go to SBA.gov is to get general information and advice about starting a small business. The site provides countless resources, including a learning center section for entrepreneurs and categories on starting and managing a business. Topics include everything from hiring employees to business laws and healthcare options.

SBA Mentors

The SBA also has a program called SCORE, which helps you find a business mentor in your area. You can talk to your mentor about your business idea and get expert advice on how to proceed via email or in person.

SBA Loans

A lot of prospective and existing business owners look to the Small Business Administration for help with financing. If you walk into a bank and ask for money to fund your business, the chances of getting approved aren’t that good. New small business ventures are extremely risky. But if you get approved by the SBA, the loan funds are guaranteed by the Small Business Administration, which greatly improves your chance of getting financing from a bank.

SBDC Centers

Small Business Development Centers (SBDCs) are scattered all over the country. They’re commonly located on college campuses, where students are studying business, economics and entrepreneurship. The representatives at an SBDC can help you develop your business plan, do research, find a business location, apply for financing and complete countless other tasks that are necessary to start your company. Just locate and call your local center to schedule an initial appointment.

There are a number of other ways that SBA.gov can help you establish and expand your small business. It’s good to know that there’s assistance out there when you need it.

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Securing Financing for a Small Business

Creative Ways to Finance Your Small Business

June 4, 2014 SUASB Leave a comment

One of the most pressing concerns of people who want to start a small business is how to finance it. My advice is to first create a business plan where you outline exactly how much you’ll need to launch the business (it might be less than you think) and then explore some creative ways to finance your small business. Here are a few ideas to help get your wheels turning.

The Friends and Family Plan

If you have a supportive family and friends who want to see you succeed, consider talking to them about your business idea. Once you have your plan and know exactly how much you need, you can divide the cost amongst yourself and the number of people you know who might want to support you in this venture. So for instance, if you need $1,500 to get started and have 4 family members (plus you makes 5), you’re appealing to them for $300 each.

Crowdsource Your Butt Off

Another popular and creative method of raising money for a new business idea is to crowdsource or crowdfund it. Sites like GoFundMe.com and Kickstarter offer this service – it’s up to you to provide complete information about your business idea, make an appeal that will grab attention and promote it via social media. You have to be serious, thorough and very motivated for this creative business fundraising method to work.

Community Grants – CDFIs

Some municipalities offer special programs to local residents who want to start a small business but need funding. A lot of people don’t know about these programs or don’t believe they will qualify, but this is definitely worth looking into. Their requirements for loans are often more relaxed than going to a back. They are often run by CDFI groups (Community Development Financial Institutions). Some community programs help you to save for your business and then provide matching funds if you complete a series of classes and reach your savings goal. Go to your local Chamber of Commerce and ask around town.

Before you go to the bank or pull out your credit cards to pay the initial investment for your idea, investigate these creative ways to finance your small business.

SBA Loans

How to Improve Your Chance of Getting an SBA Loan

June 4, 2014 SUASB Leave a comment

An SBA loan is a loan that is backed by the government. A bank is much more likely to approve your loan request if it is guaranteed by the SBA. Here are a few tips for how to improve your chance of getting an SBA loan for your new business.

Get Your Credit Profile in Order

As you can imagine, one of the most important elements of a decision by the SBA on whether or not to back your loan is your credit profile. In most cases you’ll need a great credit history and score to get an approval. Before you apply for the loan, pay down your credit card accounts as much as possible. This will improve your credit utilization ratio and increase the chance of your score going up in the near future. Get caught up with any payments and avoid going over 30 days late with your debt accounts.

Spend Some Time on Your Business Plan

When you’re planning to apply for financial assistance from the SBA you really need to spend time crafting your business plan to perfection. Don’t just throw it together in a day – take some time to get market research, gather proof of your claims and hire an accountant to help you with the finances. Having a solid plan will improve your chances of getting a “yes” answer from the SBA and a small business lender.

Bring Something to the Table

When you apply for business financing, the bank and the SBA want to know that you’re personally invested in the company as well. There’s a slim chance that they’ll provide you with 100 percent financing — you need to come with cash savings and/or collateral to show them that you’re willing to risk some of your own assets for the sake of the business. Make some sacrifices and start putting some money away in advance of applying for an SBA loan.

If you intend to ask for an SBA loan approval to get your small business started, it’s a good idea to plan ahead. Use these tips to improve your chances of getting approved.