Tips for Attaining Small Business Funding

By Michelle Loredo

​Business funding is a common stress factor for small business owners. You can make the application process easier for you by being well informed on small business funding requirements including, grants and loans.  

If you are looking for tips for attaining small business funding, the SBDC Network is here to help! We have put together the top small business funding tips. 

Business Documents and Business Funding 

When you are looking into different types of business funding, your business paperwork must be in order and updated. It includes all financial and tax-related documents. Here are a couple of examples: 

Having all of your business financial documents will help your application process be more streamlined and faster to process. 

Identify What Option Works Best for Your Business 

Here are a few questions that can help you determine what small business funding opportunities the best option for your business are: 

Depending on your answers, look for funding options that aim to help your business circumstance. If you are starting a business, do not look for expansion funding but look for start-up financing. 

If you are looking to expand your existing business, here a few types of small business funding opportunities: 

Term Loans

Small business term loans aim to help finance existing businesses and expansions. Term loans are financial assistance that has a set amount. You can pay the loan monthly and must full repay it in three years. Here are a few things to keep in mind:

  • Amount Due Can Increase

  • Have a Set Lending Amount

  • Loan Secured or Unsecured

  • Payable Between Six Months and Three Years

Small Business Administration Funding  

The SBA offers small business different types of funding that includes: 

  • Loans

  • Invest Capital

  • Disaster Assistance

  • Surety Bonds

  • SBA Grants

Due to COVID-19, the SBA has pandemic-related relief options:  

  • COVID-19 EIDL Program

  • Paycheck Protection Program

  • Restaurant Revitalization Fund

  • Shuttered Venues Grant

The SBA aims to help small businesses receive small business funding with the possibility of debt relief and cross eligibility. 

Business Equipment Loans

If your business needs to use machinery and other business-related equipment, some loans can help you buy the equipment needed. These types of loans are usually paid monthly for two to four years. Here are key takeaways: 

  • Can Also Be Used for Software and Vehicles 

  • Amount Ranges, $5,000 - $500,000

  • Loan Interest Rate Can Increase at Variable or Fixed State

Compare Lenders Requirements

When you are looking for small business grants and funding, different institutions have their requirements. 

If you are receiving help from a bank, here are some general requirements: 

  • Established For At Least Two Years

  • Good Credit Score

  • Includes Term Loans and Lines of Credit 

If you are thinking of getting help from microlenders, here is a list of general requirements: 

  • No Credit Needed

  • Bad Credit Accepted 

  • New Operating Business 

  • Lend No More Than $50,000

The microloans aim in helping new and small businesses take off and typically have higher Annual Parentage Rates. 

Local Business Grants Opportunities 

On the SBDC Network website, we have put together a list of external small business grants. 

For the full list of grants, visit our network website. 

Have More Questions?                                                          

If you would like to receive help, the SBDC advisors are here to help. Our 14 locations offer no-cost business advising and resources.

We also have recorded and live webinars available for free. Here are a few that can help you in your funding venture.