Business Financing
Funding for business start-ups or existing businesses is a hurdle which all businesses must deal with. The first step is figuring out how much cash you really need. These financial calculators can help determine how much you need so that you can look in the right places for funding. Then, download the Guide to Financing Options.
There are many types of financing options available, and tailor-made for, the small business and micro-enterprise. In addition, there are special funding avenues for minority and/or women owned businesses. Almost every valid business idea can be funded; it's a matter of knowing where to look and providing a sound business plan.
- SBA Loans: The United States Small Business Administration (SBA) offers a variety of loan and grant programs for small business. The SBA web site provides a list of invaluable articles on business financing as well.
- Secured Loans: The amount of such loans directly depends on the value of the assets held by an applicant. In case of any failure in repayment, the applicant’s assets may be forfeited to the lender. Due to increased security of money lend under this scheme, the small business owners can avail of benefits like better rates and better repayment options. Apart from that a longer repayment period cuts down upon the monthly repayments helping the small business owners to manage their finances in a better way.
- Unsecured Loans: These loans are without any security/ collateral and are focused entirely on the character and reliability of an applicant. However, the rate of interest in this case is considerably higher than the other options.
- Bad Credit Loans: Small business owners with bad or poor credit history can go for Bad credit loans. Under this scheme the lenders may charge a higher rate of interest because of the increased risk associated with the money lend due to the applicant’s poor credit history.
- Small business loans for Women: Due to an increase in women leading small businesses, many banking and non-banking institutions are providing special loans that support women financially to fulfill their business objective along with some additional benefits. Find out more about loans for women owned businesses.
- Microenterprise development programs: These programs will provide you with access to credit to give you the start-up capital, individualized training, support and technical assistance, help you develop a solid business plan and put you in touch with other microbusiness owners, create business contacts and build a strong support network. Find out more about microenterprise programs.
Upper Arkansas Area Council of Governments
UAACOG offers two finance programs available to help small businesses achieve their goals:
The "GAP" program is designed to assist a borrower obtaining a primary business loan but needs to fill a financing "gap" to complete the overall financing needs of the business. Typical "GAP" loans provide about one-third, but always less than half of the total financing required by the business. A successful financing structure includes a greater-than-half loan with a primary lender and a gap-filling loan with the UAADC.
The "Direct" loan program is designed for a borrower having exhausted typical sources of financing and needs a loan amount generally under $30,000.
Find out more about UAACOG Financing Programs.
For more information on financing a small business, visit these web sites:
Colorado Office of Economic Development Business Finance Programs
Entrepreneur.com's Funding Outside The Box