funding for your business: sbic & government grants
DESCRIPTION
A guide to receiving funding for your business through Small Business Investment Company (SBIC), a subsidiary of US Small Business Administration, and through Government Grants.TRANSCRIPT
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!