If your established small business is positioned for expansion but you don’t have funds available to grow your business, you can turn to loans and other funding options from various organizations in your states. Small businesses across all industries may be eligible to receiving some form of financial assistance from the Federal government, as well as from business development organizations in the community.
Here are some of the top funding options available for established small businesses:
Funding Options from the U.S. Small Business Administration
The United States Small Business Association (SBA) offers several types of loans for small businesses that aren’t in the startup phases. I’ve found that the SBA website also provides several educational resources and recommendations for small business owners at all phases of growth.
Funding options form the SBA include:
– Certified Development Company (CDC) Loan – these are known as the 504 loan program and provide fixed-rate financing to small business that are prepared to expand or improve operations by investing in real estate, or capital equipment such as machinery.
– 7(a) Loan Guaranty Program – this loan program extends small business loans of up to $2,000,000 and the funds can be used for a small business that is ready for expansion
– Microloans – this program is designed for small business owners who are interested in growing their small business, as well as for start-ups and recently-established businesses. Microloans are usually made available through local community lenders who screen candidates and handle the loan processing paperwork.
Small business owners can fill out this form on the SBA.gov website to begin the search for business loans, grants and financing plans.
Grants from Grants.gov
Grants.gov is a governmental resource that has its origins in the Federal Financial Assistance Management Improvement Act of 1999. The organization provides information on over 1,000 grant programs for non-profit and for-profit businesses, and eligibility requirements are set forth by the Small Business Administration. Established small business owners that meet the standards listed in the eligibility section of the Grants.gov website can apply for numerous grants listed in the database.
Cash Advances and Express Funding from Private Organizations
Small business owners that do not meet the SBA’s eligibility requirements may be able to get the cash they need from a private lender or lending organization. Business cash advance programs provide business owners with the cash they need based on credit rating and other factors. Others offer conventional loan products and financing plans that use company assets as collateral. Eligibility requirements, terms and the amount of funding vary by the lending organization.
Small Business Administration: Loans, Grants and Funding
Small Business Administration: Search for Business Loans, Grants and Financing
Grants.gov: About Grants – Eligibility
Dun & Bradstreet: Bank Loans for Small Businesses