information for small business operators. The finance section of U.S. Small Business Administration’s website at sba.gov/ financing, provides details on SBA’s many funding programs. Perhaps you qualify for one. The Service Corps of Retired


Executives is another non-profit association that can help you navigate the financing process. This group is made up of retired entrepreneurs who mentor aspiring businessmen and women. You can find your local chapter by visiting score.org.


Where to look for capital There are many channels through which you can acquire financing for your small business. Your bank is a great place to start. Meet with a loan officer at the bank you currently have an account(s) with. He or she will be able to advise you if you qualify for any small business loans—and assist with the process. Also check with smaller local banks and credit unions; they tend to be more open and flexible when working with small businesses. Also research if your state has any small business grants


available. Some states offer other small business incentives like subsidized rates on SBA loans, tax breaks and participation in business incubator programs. Credit card companies


also have very enticing offers for small business owners these days. Many of the major credit card companies have dedicated cards just for small business owners. However, these have


lower limits and higher rates. If you decided to finance any or all of your business on a credit card be sure to read the fine print of your credit card agreement. There may be great opportunities to earn points or miles, but they could come at a very high interest rate and cost to your bottom line. Investors and venture capitalists will typically invest in a


startup company that has a new and unique product or service with high potential in exchange for equity in the company. For generations entrepreneurs have been getting loans from friends and family. While this is certainly an option, care must


be exercised when going about it. Keep it professional—present your business plan just as you would to any other lender. You should also prepare a personal loan agreement or promissory note with the friend or family member who is loaning you the money. Having the terms executed in writing will be better than having only a verbal agreement in place.


Additional options There are also some new and non-traditional ways to raise funds for your new business. Kiva is an organization that helps fund entrepreneurs through microfinance. Microfinance is a process where loans in small amounts are given out routinely without much need for collateral.


Peer-to-peer lending is also a valid option. In this case


funding is obtained from individual lenders who are looking for investment opportunities with high returns. The middlemen— the banks—are eliminated in this process. This type of financial lending can be very tricky. Be sure you check with the Better Business Bureau to ensure the company managing the loans is in good standing and research customer feedback responses. To recap, you will need to


prepare a business plan and obtain funding. There are many resources out there to help educate you about the process of starting and operating a small business. Visit your local l ibrary, research the Internet, and set up an appointment with your local SCORE or SBA office today. And if you are passionate about your business and products this will all be a labor of love.


Star r Cumming is an At lanta-based f reelance wr i ter and consultant. She has 13 years of experience in the specialty leasing and commercial real estate industry and can be reached at starr.cumming@gmail.com.


Article Resources Kiva


kiva.org Prosper


prosper.com


SCORE score.org


U.S. Small Business Administration sba.gov


For seven tips on how to land an SBA loan, read our extended version online at specialtyretail.com. SpecialtyRetail.com Winter 2011 n Specialty Retail Report 115


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