Financial Information
Are there government grants for my business?
Generally, there are no government grants available for small
businesses. In fact, the term "grant" may be a misnomer,
since grants simply pay for services the government needs done.
Most government grants are awarded to non-profit organizations
or local governments, not to private companies. One possible
exception is for companies developing or exporting agricultural
goods, including food and forest product. If you think you may
qualify for one of these, click on reference. Another exception
could be the SBIR or STTR programs, which fund the research and
development of technological innovation that meets specific government
needs. For more information on these programs, click on www.sba.gov/SBIR.
Does the SBDC provide financing?
No. The SBDC is an economic development program of the University
of Georgia system and does not lend money. SBDC Consultants can
help you identify sources of funding to best fit your financial
needs.
Can I get an SBA guaranteed loan to refinance present debt?
Yes, if the debt is a business debt (i.e. not personal) and
the refinance must result in a minimum of 20 percent improvement
in cash flow.
Can the SBA lend me money?
No, the SBA does not directly lend money. However, it does
provide guarantees which eliminate some of the risk to its
lending partners, such as banks, community development organizations
and microlenders. SBA partners lend money to small businesses
based on the guidelines for each of its three loan programs.
For more information, click on http://www.sba.gov/financing/sbaloan/snapshot.html.
What are angel investors and how do I find them?
An angel investor is a wealthy individual who provides capital
for early stage or start-up businesses, usually in exchange
for an ownership stake in the company. Angels often provide
funding for businesses that need more capital than is available
through personal and family investments, but are not large
enough to attract venture capitalists. Angel investors often
organize themselves into angel networks or angel groups to
share research and pool their own capital. For more information,
click on www.angelcapitalassociation.org or www.angelcapitaleducation.org
How can I get access to venture capital?
As a rule, venture capitalists do not lend to small businesses
because the large amount of dollars they invest (millions)
are beyond the scope of most start-ups. In a situation where
venture capital is an option, investors will look to share
in the profits of the business and will expect a huge return
in a relatively short period of time. For more information
on venture capital, click on www.vfinance.com.
Are there grants for minority-owned businesses?
No. There are no grants available for minority-owned businesses.
Grants are available for established nonprofit organizations
for the purpose of training, community development or technical
assistance.
Do certain groups get preferences on government lending programs?
No. Eligibility to qualify for an SBA-guaranteed loan is based
on size standards and must be a for-profit business. However,
the SBA Community Express loan program targets businesses
owned by minorities, women and veterans as well as businesses
located in HUB zones.
I've heard that foreign nationals get
free money to start a business. Is that true?
No. Foreign nationals don not have access to free money. They
use the same traditional and non-traditional financing sources
to start their own businesses, as well as community-based financing
options.
Are there special loan programs for minorities?
The SBA Community Express Loan Program is offered to designated
geographic areas serving mostly low and moderate income areas
and minority, women and veteran-owned small businesses.
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