Do you think you have the next great idea for a start-up business? America is, after all, the land of opportunity. Entrepreneurship is an American ideal and there are 30.2 million American small businesses.
These small businesses form 99.9% of the U.S. economy and employ 58.9 million people. Because of this, the U.S. government has a vested interest in your small business success.
You may have the idea, but you need the money. There are many great small business funding programs. Find out which one is right for you.
Whether you’re starting a Falafel fusion restaurant or a software company, you can secure the stuff you need to do business through equipment loans.
The structure of these loans is similar to any other loan you might apply for with standard monthly payments and interest rates. You may only purchase business equipment with them.
These loans are specific because the restrictions on equipment loans are less than other loans. The reason there are fewer lending restrictions is that a bank can recoup their money by repossession.
If you don’t think an equipment loan is right for your business, consider equipment leases for your small business funding options.
SBA Guaranteed Loans
Government funding for small business often comes in the form of Small Business Administration guaranteed loans.
The money for these loans doesn’t come directly from the government. Rather, the government pairs with private lenders.
These loans meant as funding for small business start-ups are backed by the government, meaning they reduce lending risk. When private banks lend money to citizens, they assume the risk. This risk is whether you’ll pay it back.
SBA risk reduction encourages private lenders to loan your business money because the bank won’t be hurt should your business fail.
Small Business Grant Funding
The US Government offers grant funding to small businesses. Various federal agencies offer business grant funding specific to the needs of their agencies.
The US government also distributes grant money to state and regional governments. These smaller government entities take applications and determine which small businesses receive grants.
They do this through local Small Business Development Centers.
You may review your options and decide you want to limit how many loans you take out. While any business starts in debt, the less the better. One of the more popular methods for raising start-up money is to ask for it.
There are websites that organize this crowdfunding for you. If you want to open a restaurant or start a much needed local community service, people will give you cash to do it. Start a fundraising campaign on social media and see the money come in.
Secure Small Business Funding
Because small businesses make up the overwhelming majority of the United States economy, the government is interested in your success. While your personal success is up to you, the government through the SBA offers start-ups money.
Small business funding comes in many forms. Whether it’s loans, grants, or crowdfunding, if you got an idea, you can try to sell it.
Are you interested in small business investment? Check out our other articles.