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TYPES OF FUNDING

 

Banks, Commercial Lenders

Types:  Debt – Term Loans, Line of Credit, Credit Cards

Commercial lenders offer term loans to finance working capital, fixed asset purchases, business expansion and/or refinance existing debt.  The lender may require an SBA loan guarantee.

Revolving line of credit is obtained from a bank or on a credit card.  Supplies funds to fill temporary cash shortages.  Typically used to finance working capital, eg. accounts receivable, inventory.

Collateral required.

Generally $5,000 - $100,000.

Grants

There are no direct federal government grants for starting a new business.  Grants are generally given to organizations to stimulate or encourage business enterprises.

Family and friends

Borrow money from family and friends.  There are organizations that can manage personal loans between relatives and friends.

Incubators

Designed to encourage business start-ups.  They provide workshops, multi-tenant office space, shared office services, and improved access to capital.  Each center provides services to a very specific clientele.

SBA Loan Guarantees

The Small Business Administration has numerous programs and services designed to help small businesses succeed.   SCORE is sponsored by the SBA.  The SBA is primarily a guarantor of loans made by private and other institutions.

Private Investors

Types:  Equity, Debt           

Private or limited stock offerings can raise equity from outside investors without the cost and regulations associated with public offerings.  The private offering must consist of debt and/or equity.  Public stock offerings give the business access to growth capital and give investors a more liquid asset.  These are expensive, time-consuming, and highly regulated.

Venture capital (VC) is provided to early-stage, high-potential, high risk, and growth start-up companies. VC's make money by owning equity in the companies they invest in.

An angel investor or angel is an affluent individual who provides capital for a business start-up, usually in exchange for convertible debt or an equity investment.

 

Small Business Lending  

Links for small business lending

Business Finance  

Where and how to find capital for your business.

Colorado Office of Economic Development

Colorado offers various tax incentives and funding programs, including debt and equity financing, funding provided to banks to encourage lending, cash incentives, grants, and tax credits. All are focused on supporting economic development activities in Colorado.

                       

Small Business Administration (SBA) - COLORADO

Colorado District Office

721 19th Street, Suite 426

Denver, CO 80202

Phone:   (303) 844-2607

     

 

Small Business Investment Companies (SBIC)

SBICs are privately owned and managed investment funds, licensed and regulated by SBA, that use their own capital plus funds borrowed with an SBA guarantee to make equity and debt investments in qualifying small businesses. The SBA does not invest directly into small business through the SBIC Program, but provides funding to qualified investment management firms with expertise in certain sectors or industries.  

Directory of SBIC's 

 

 

Micro-Loan Lenders

Micro-Lenders provide small business loans to entrepreneurs who are unable to obtain financing through traditional sources.

SBA Microlenders

Colorado Enterprise Fund

Micro-Loan Lender, SBA 7(m) Loan Program

Non-profit community development financial institution founded in 1976. Help people start or expand their small businesses.  Make loans to businesses that can’t get financing from traditional sources. Serves Denver, Adams, Arapahoe, Boulder, Douglas, Jefferson, Larimer, Weld, Elbert, and El Paso counties.

Early, Later, Growth, $1,000 to $150,000, Loans may be amortized up to 6 years

Aurora Business Development Center

Mico-lender (non-SBA)

Serves city of Aurora, particularly Original Aurora (zip codes 80010, 80011 and 80045).

Also provides SBA Community Express Loans to borrowers from any location through three lenders for lower to moderate income areas and minority-owned businesses.

Later, Growth, $5,000 - $75,000

Accion

Micro lender(non-SBA)

New Mexico, Arizona, and Colorado 501(c)(3) nonprofit organization that increases access to business credit, makes loans and provides training, which enable emerging entrepreneurs to realize their dreams and be catalysts for positive economic and social change.

Largely privately funded.

Early, Later, Growth, $200-$150,000

 

 

Grants

 
There are usually no direct federal government grants for starting a new business.  Check for private grant programs and city/state programs.

 

 

 

 

 

Family and Friends/Crowdfunding

Links for organizations that help with direct peer to peer lending:

 

 

Incubators

Business incubators are programs that support the successful development of entrepreneurial companies.  They provide an array of business support resources and services offered both in the incubator and through its network of contacts.  

 

 

 

 

Banks

SBA Lenders

There are numerous other commercial lenders.  Small businesses, especially start-ups, may have a better chance obtaining funding through a community bank.  Some community banks in our area:

 

 

 

 

 

Venture and Angel Capital

Boogar List of Venture Capitalists

List of venture capital firms

 

Funding Post

Venture capital and angel investor site

 

Angel Capital

Links to venture and angel investor sites

 

Investors Circle, Brookline, MA

Network of angel investors and venture capitalists

 

LaunchPad Venture Group, Wellesley, MA

Boston-based angel investment group that provides funding to early-stage technology-driven companies.

 

Colorado Capital Alliance, Inc.

Equity, Debt.  Matches private investors with entrepreneurs who need capital:

PO Box 19169
Boulder, CO  80308-2169
Phone:  (303) 499-9646