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FINANCING
Questions?
How do I finance the start-up of
a small business?
To determine financing needs, you should first prepare a business
plan with a complete set of financial projections including
a balance sheet, income statement, and cash flow statement.
With a properly completed business plan, you will have identified
your funding needs. Banks will lend to some business start-ups
if they are satisfied with your business plan, your level of
equity investment, the collateral you have to pledge to the
loan, and your credit history and experience.
Where
can I find a grant to start my small business?
Grant monies are usually not available for new venture businesses,
with a few exceptions of high technology businesses. You may
find grant information at your local library, www.cfda.gov,
or www.sba.gov/expanding/grants.html.
Will
the SBA (Small Business Administration) loan money to me?
Except in isolated and special situations, the SBA does not
make direct loans. Its loan activity is in the form of participating
loans and loan guarantees. You must deal with a bank to reach
the SBA. You can think of the SBA as a level above your bank
that is providing incentives to your bank to make it easier
for you to get debt financing. The bank plays a major role in
evaluating your loan application and in administering the loan.
The bank's agreement is necessary before the SBA will get involved.
Does the SBDC Network
provide financing?
The SBDC does not provide financing. Our assistance is technical
and educational in nature. We work with banks and other lending
agencies and organizations to assist in putting together financial
projections, but the actual financing comes from outside sources.
We have strong relationships with lending institutions that
may benefit your chances of receiving funding. Having inside
knowledge of these lending institutions, we can match your business,
credit, and plan up with an appropriate lender, increasing your
odds of getting financed. |
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