# grants and loans



## pheral (Oct 28, 2008)

I am looking for some cash for start-up. Has anyone recieved a grant from the government or from another private company? If so, how did the process go? Was it easy or was it hard? Any and all help would be super.


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## fdsales (Jul 1, 2007)

We have been in this business for 22 years, and all of our funding has been from loans. Grants are very difficult to obtain; it usually involves a lot of paperwork & time, takes a long time for approval and grant money for this type of industry is rare. Grant money is usually reserved for medical research, etc. Best thing to do here is either get a loan, and make sure you make payments ON TIME to preserve credit ratings, or use your credit card. You'll find that if you develop a good track record with your credit history, after a while in business, you will be able to get open account with various suppliers. My suggestion is to use a business loan for equipment, and use your credit card for supplier purchases, and be sure to pay the credit card balance off every month, or as quickly as you can, even it it means paying in the middle of the billing cycle. Interest can get really expensive. Good Luck.


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## creatinggrafix (Dec 26, 2008)

any national grant providers that you can list to maybe apply to?


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## Girlzndollz (Oct 3, 2007)

Contact your local Small Business Development Center. Free resource for you (paid for with your tax dollars) and they know about these things, what's available for you. Can walk you thru it.

Google "small business development center" and on the home page... look to the right for the SBDC Locator map. They are nationwide. Good luck to you.


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## BillyV (May 8, 2009)

I looked around and didn't find any grants listed that would fit?
An small business loan will be your best bet.


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## irish (Dec 13, 2008)

Girlzndollz said:


> Contact your local Small Business Development Center. Free resource for you (paid for with your tax dollars) and they know about these things, what's available for you. Can walk you thru it.
> 
> Google "small business development center" and on the home page... look to the right for the SBDC Locator map. They are nationwide. Good luck to you.


There may also be local Development Corps that have money to help out with. (If you are rural & in the good ol' boy network it helps).


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## EJR (Feb 15, 2009)

I find it very difficult to get business loan for this business.I been to those sbdc centers. but banks are not loaning for this kind of business. any ideas when funding could be found?


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## curiousity (Feb 15, 2009)

EJR said:


> I find it very difficult to get business loan for this business.I been to those sbdc centers. but banks are not loaning for this kind of business. any ideas when funding could be found?



Do you have a good business plan with market research? I'm using a SBDC advisor...  He ripped apart my first business plan apart in a friendly, useful way. I'm working on the 2nd draft now.

And if the banks still are leery to lend (even for SBA-backed loans), then try:

- Credit Unions
- local Community Development Organizations
- Angel network
- private lending (I'm only talking about getting the loan from a private source, not adding silent partners... that would be my very last choice.)

Hope that helps!


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## EJR (Feb 15, 2009)

curiousity said:


> Do you have a good business plan with market research? I'm using a SBDC advisor...  He ripped apart my first business plan apart in a friendly, useful way. I'm working on the 2nd draft now.
> 
> And if the banks still are leery to lend (even for SBA-backed loans), then try:
> 
> ...


yes i do. I ve also talk with two designers of clothing lines that made millions. i was also told banks are not lending for this type of business because they dont think these businesses are going to sucessful banks claim clothing lines are high risk. i was told i sould look for private money.


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## curiousity (Feb 15, 2009)

EJR said:


> yes i do. I ve also talk with two designers of clothing lines that made millions. i was also told banks are not lending for this type of business because they dont think these businesses are going to sucessful banks claim clothing lines are high risk. i was told i sould look for private money.


Well, I guess that also depends on how much you are looking to borrow, right? Not everyone here is trying to start a clothing line. Some people are trying to just start a side business. Even if the banks are not lending, the options I gave tend to use slightly different criteria so you may have better luck with them. All they can do is say no. Since you already have your business plan together, it's only a small investment of time and effort.

Angel network are private money. I found a list by region. It's for the US so I'm not if it will be useful for you since I'm not sure you are in the US. If not, try googling "Angel network" and the area you live in.

Angel Investor Directory, Angel Investors Article - Inc. Article


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## taricp35 (Dec 10, 2008)

I bought a small storefront with cash and bought equipment and supplies with some cash but mostly credit cards. I have been trying since 2007 to get a loan and it has not happened. I was turned down by SBA and just about every other bank, credit union, and private lender. I have better than good credit and I make sure all bills are paid on time because that will really hurt you. I then tried to refinance the storefront and guess what? They declined me because they said I was a new start up and they need business taxes for the last 5 years and since i did not have that I should try the SBA. Well they had already told me no so why would I go back????


Chip


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## mumzie (May 9, 2008)

Call your local SBA office, and ask to speak directly to the person who teaches the classes/gives the talks about SBA loan programs.
That person usually knows what's what in your area.
Also - on the SBA website for your area, there should be a list of banks/credit unions that offer loans. STart with the credit unions, and work your way UP to the small local banks, then UP again to the big banks.
Be persistent.
Get the business plan together, and go for it.
Somewhere, some how,someone will loan you money. Maybe not where you expected..

But be careful - figure out what you think you need, cut every financial corner you can think of,and borrow twice that much. Then you might have enough.
Our SBDC advisor suggested we borrow 10X. The bank was willing to loan 5X - the amount the advisor said "was just enough to fail". Sure enough, we've been 5X short for 2.5 years, and are surviving by the seat of our pants.
Good luck!


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## BillyV (May 8, 2009)

Great advise Mumzie!


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