Small Business Funding

You've thought of a great idea for a business, and maybe you even have a business plan written up. But materials, inventory, space, and advertising all take funds, and it takes money to make money.

So how do you get the money to start? Here are some funding options available to get your business going.

Loans

Loans through banks or other lending organizations are a common source of small business funding. The requirements for these loans can sometimes be steep, however. Furthermore, the lending institution may only grant loans for specific projects.

Having a good business plan to present to the loan officer helps your application for a loan greatly.

Help From the Government

If you are looking to start or are already running a small business in the United States, loans from the government are available to help.

These loans are offered through the Small Business Administration's partners (http://www.sba.gov/financing/basics/sbarole.html), and come in different varieties. Some of these loans are to help qualifying small businesses get funding when they are not able to get loans through regular sources.

Grants

Grants are sums of money that do not have to be repaid. They usually take a large amount of hard work to get. Since grants are not repaid, competition for them is stiff.

Grants are given to help a business succeed in a particular planned project. They are not given to projects that are already carried out or in the process of being carried out, only future projects.

For small businesses in the United States, the two main grants available are the Small Business Innovation Research Program and the Small Business Technology Transfer Program (http://www.sba.gov/sbir/indexsbir-sttr.html). These grants are to encourage small businesses to innovate and expand their technological potential.

Disaster Recovery

Disaster recovery loans are available from the SBA for small businesses in the United States (http://www.sba.gov/disaster_recov/index.html).

The amount of money given is based on the actual cost of replacing or repairing your home or personal property. Any amount paid by insurance or grants is taken out of the loan amount. However, you do not need to wait for an insurance settlement to apply for disaster recovery assistance.