Starting a retail storefront business? There are numerous financing options available for new business owners.
Question from HBT reader: I am thinking of starting my own computer store. I have researched the idea very well, and I know that it’ll be successful. But my main problem is funding, do you think SBA will be my only hope, or are there some other ways to do that?
You may want to consider focusing on funding sources in your local community. If your business requires less than $35,000, the Small Business Administration Micro-Loan Demonstration Program may be able to help. This program makes funding available to non-profit organizations in your area, who then make loans to qualifying businesses.
Micro Enterprise Development Programs in your community comprise a viable funding source. Numerous programs are set up to fund new businesses directly, or make funds available to lending associations (intermediaries) who then make loans to businesses. These lenders can be non-profit, governmental, or private, and take an interest in businesses which provide a good fit for the community based on the program’s goals. There are hundreds of these programs operating across the country. The Association for Enterprise Opportunity maintains a list organizations and programs.
You can locate other programs by visiting your Chamber of Commerce, local university, small business development center, and other community development organizations. Make sure your business plan is in tip-top shape and you’re well on your way to finding a suitable lending source for your business.
ABOUT THE AUTHOR
Brett Krkosska provides how-to advice on small business and home-based work issues. He is the founder of HomeBizTools and the publisher of Straight Talk, a syndicated column that offers a unique perspective on today’s business issues.