When I sent out the last Small Business Trends newsletter, I answered a reader question as I always do in the Letters to the Editor feature. The question was: “How Do I Find Capital to Start a Business?”
My answer was: (1) family and friends, (2) angel investors, or (3) work two jobs and save your money.
Shortly afterwards, I received this email containing additional resources for startup capital here in the United States. I reproduce the entire email here:
- Dear Anita,
- Count-me-in, an online microlender for women.
- SBA Community Express loans, available through Innovative Bank and local business organizations (such as ours).
- Community lenders. Check the SBA site, click on your state, then click on financing.
- State governments often have financing programs – check with the economic development units at the city, county and state levels to find out what incentives may be available for your type of business.
- Network in small business and economic development circles.
- Also, note that getting a bank loan is a process that you can get help with. Locate a convenient Small Business Development Center or Women’s Business Center and meet with their counselors. These organizations have relationships with local banks and can help you find the right lender. They also provide the kind of business planning counseling and courses — often delivered by lenders — that leads, eventually, to successful loans. (We have a number of success stories.) They also teach the process of developing a relationship with the right bank so that, over time, you position yourself for a successful loan application.
There are more resources available to start-ups. Here are some of the ones we help our clients access.
Interestingly, a high proportion of potential business loan applicants have credit problems. Anyone who anticipates needing business financing should first learn their credit score and raise their credit rating.
I hope you will be able to share this information with your readers. Thanks so much!
Susan M. Kuhn
Vice President, Entrepreneurial Programs
National Women’s Business Center
Thank you, Susan, for taking the time to add your information for our readers.