Where is the Start-Up Money?

As we all have heard, there are grant and loan funds available: “billions for small business from the Federal government”.   Yes, that is the case for existing businesses.  The money has gone to the Economic Injury Disaster Loan (EIDL – still open through December 31, 2021), the Paycheck Protection Program (PPP – still open through May 31, 2021), and the newer Restaurant Revitalization Fund (RRF) and Shuttered Venues Operating Grant (SVOG).  The State of Colorado has also opened the CLIMBER Loan Fund.  These are excellent opportunities for our businesses that have been negatively affected by the pandemic, but the money is not available to start-up companies.

So, what are the options for start-ups?  This is where things get a bit more complicated.  Historically,
it has always been difficult to obtain a loan for starting a business.  With no business financial track record, most start-ups are considered risky, and entrepreneurs rely strongly on friends and family or crowd funding to help get them underway.  Regardless, there are things that can increase your chances of getting a loan:  a rock-solid business plan, significant collateral, owner financial contribution, good credit score and owner experience in the industry.  Keep all of these in mind as you create a plan for starting your business.

For business expansion or an acquisition, loans are available through a local financial institution if the business can show strong profitability and there is a clear business plan for growth and financial sustainability.

Remember, the SBDC is here to help, so contact us for guidance, planning and lending resources. 

To register for a webinar, visit www.Aurora-SouthMetroSBDC.com/training.  Start-ups, remember to take a start-up webinar prior to initiating a consulting session.

To register for consulting, visit www.Aurora-SouthMetroSBDC.com/consulting.