funding for your business: sbic & government grants

FUNDING FOR YOUR BUSINESS – SBIC AND GOVERNMENT GRANTS

Introduction

• Capital or funding is what you need to start your business.

Where do you get funding for your business?

What do they have in common?

• All of the aforementioned companies received seed money from SBIC’s, i.e., Small Business Investment Company.

Part 1: SBIC

SBIC - Introduction

• There are about 450 SBIC’s all over the USA.• Each one is licensed and regulated by the SBA –

The Small Business Administration. • While they are owned by the SBA, they actually

are a privately owned and managed investment firm that provides venture capital and startup financing to small businesses.

SBIC – Funding History

• The Small Business Investment Company has provided nearly $ 30 billion in financing (both loans and equity investments) to 90,000 small businesses since 1958.

SBIC – The Advantage

• Each SBIC is free to define its own area of interest. Some specialize in specific industries, geographic areas or personal interests of the fund managers.

SBIC – The Advantage

• Unlike many venture capital (VC) outlets that demand quick returns, SBICs have developed a reputation as providers of “patient capital” that small companies need to develop products and foster growth over time.

SBIC - Summary

• Privately owned and managed investment firms that provide venture capital and startup financing to small businesses.

• They are free to choose the field of funding.• Patient with small businesses that need to

develop products and foster growth over time.

Part 2: Government Grants

Government Grants

• Grants are like free money for small businesses: Unlike loans and other debt, grants don’t typically require you to pay anyone back.

• Of course, finding and qualifying for public or private funds takes some effort.

• Here are five potential sources of grants for small enterprises and entrepreneurs.

State and Local Agencies

• The Federal Government doesn’t offer grants to small businesses.

• However, state or local governments may offer other financial-assistance programs, such as low-interest loans.

Federal Funding

• The US Government offers specific funding, many of whom are available to small businesses and entrepreneurs. Examples include…

Federal Funding

Health-Related Research

Federal Funding

Green Product Development

Opportunity Fund

• This California nonprofit offers a mix of microloans, microsavings, and commercial real estate financing to small businesses in the San Francisco Bay Area

Amber Grants

• The Amber Foundation Grants have been supporting women entrepreneurs since 1998.

• The grants, usually $500 to $1,000 each, are intended to help with the small but essential expenses that can help women entrepreneurs start their own business.

Love a Local Business

• Intuit’s Love a Local Business grant competition has given more than $1.1 million to winning small businesses since its inception.

Love a Local Business

• The winning business receives a $25,000 grant.

Summary

• Small Business Investment Companies (SBICs) are a marvelous financing opportunity for promising early stage ventures investigating grants to start a business and alternative forms of small business start up capital.

• Grants are like free money for small businesses: Unlike loans and other debt, grants don’t typically require you to pay anyone back.

• There are various sources of grants

To know more on Government Grants, kindly visit - http://www.allamericangrantguide.com/

Thank You!