are a number of sources to consider when looking for financing for
your small business. Personal resources, friends and family are typical
examples. Your personal resources may also include credit unions.
While credit unions do not make business loans, they will make personal
loans. There are several sources of micro loans with amounts that
range from $1,500 to $25,000. It is critical that you explore all
your options and the conditions attached to each loan product before
making a decision. Commercial Lending institutions are the most common
source of funding. Many of these institutions have Small Business
Administration (SBA) guaranteed loan products. These products provide
credit enhancements for early stage companies that may need additional
help from the Federal Government. Venture Capital (VC) is another
source of funding for qualified projects. There is a trade off in
exchange for using venture funding; they require the pledge of equity
or partial ownership to the VC. If you have a relationship with a
local lender, start there. Find out if they provide SBA guaranteed
loan products. If you have additional questions please feel free to
contact the Small Business Resource Center.
A typical loan application has items that you
will find in the checklist.