Financing Your Small Business
Arranging proper financing for your business may be one of the most important tools necessary for your success. Your objective is to present a loan proposal that a banker can approve. There are many resources that can provide expert advice to help you prepare your loan proposal.
One of the questions we are frequently asked is if there are "grants" available for small businesses. Currentlly grants are not available to small businesses, especially start-up businesses. In order for your business to qualify for funding, you must put together a business plan which includes a funding plan.
Resources and Training:
- Salt Lake County Loan Fund
- Salt Lake SCORE office
- Utah Microenterprise Loan Orientation Classes
- Small Business Development Centers
- Zion's Bank Business Resource Center
- Small Business Administration
Types of Financing:
Banks and Credit Unions offer traditional sources of financing as well as loans backed by the Small Business Administration (SBA). The SBA typically guarantees a portion of the loan, which makes it more attractive to a traditional lender. If you already have an established relationship with a bank or credit union, go there first. You are already their customer - which may help you secure a loan.
To be eligible for SBA loan assistance, a business must be organized for profit, be based in the U.S. , and be small under SBA's size standards. Businesses ineligible for SBA assistance include non-profit businesses, financial businesses primarily engaged in lending, developers, life insurance companies, gambling establishments, and businesses which have caused previous losses to the government.
Other financing options include the Utah Microenterprise Loan Fund and the Salt Lake County Revolving Loan Fund.
Utah Microenterprise Loan Fund
The Utah Microenterprise Loan Fund specializes in small businesses who have been unable to get traditional bank funding because they don't have a track record, they don't have sufficient collateral, or their credit history is less than perfect. They have helped launch over 350 small businesses across the state. Their typical loan amount is from $5,000 to $25,000.
The Utah Microenterprise Loan Fund provides training on how to write a business plan and how best to present your company for a loan request. Go to their website for the schedule of training sessions which are held on Tuesdays and Wednesdays.
Salt Lake County Revolving Loan Fund
The Salt Lake County Loan Fund is administered through the Utah Business Lending Corporation. Their mission is to assist small business in specific areas of unincorporated Salt Lake County through gap financing, creative loan guarantees, and business education.