Grants, Financing, & Business Incentives

CashYou need money to grow a business! One key to a successful business startup or expansion is the ability to secure appropriate financing. Raising capital is the most basic of all business activities, but as many new entrepreneurs quickly discover, raising capital may not be easy. It can be a complex and frustrating process. Capital can come from many sources.

There are several sources to consider when looking for financing. It is impotant to consider all of you options before making a decision.

  • Grants: By and large, governmental entities and private foundations do not make grants to for-profit enterprises. There are only a limited number of financial grants for specific business purposes.
  • Financing Programs: The most common source of funding is debt from banks, credit unions or non-bank lenders. These lenders will provide a loan if you can show that your business proposal is sound. There are programs through the U.S. Small Business Adminstration that can enhance or support an extension of credit when the lender perceives a higher risk.
  • Business Incentives: Local, State or Federal business incentives may impact the company’s cost of doing business. Tax credits, rebates or exemptions, development fee waivers and jobs grants may be available to businesses meeting certain eligiblity criteria.
  • Venture capital firms: These firms help expanding companies grow in exchange for equity or partial ownership.

If you are informed and have planned effectively, raising money for your business will not be as painful experience.