Securing Funding: Grants, Loans, Alternative Options For Small Businesses
Resourcefulness is key to success as a small business. If you’re just starting a small business or need a little boost to help you through an expansion, you’ve got to have access to capital. It all starts with the big scary f-word: Funding.
Luckily, there is a large pool of financial resources available to help – you’ve just got to know where to look!
Funding Options for Small Businesses
Grants
- Federal Grants – Grants.gov houses a large majority of the federal grants available to small businesses. The government awards grants to businesses that can help contribute to national goals – like economic recovery, research, and innovation. It’s also worth looking into USDA, Small Business Innovation Research (SBIR), and Small Business Technology Transfer (SBTT) grants.
- State and Local Grants – Closer to home, North Carolina beckons with a bounty of grants and incentives! The NC Department of Commerce website is your map to this local goldmine. And right here in Fayetteville-Cumberland, opportunities for small businesses are as abundant as the sunshine. Still unsure where to start? FSU HUB is your one-stop business support guru, ready to guide you through the financial landscape!
- Private Grants – Most small businesses have better luck finding relevant grant opportunities from private foundations and corporations. For example, the National Association for the Self-Employed (NASE) offers a $4,000 “Growth grant” to help its members grow their micro-businesses. But this is just one of MANY examples, so make sure to do plenty of research.
Loans
- Traditional Bank Loans – Although they require repayment, loans offer greater flexibility than grants. These are often the first place entrepreneurs look. They can be ideal for businesses with solid credit, collateral, and a strong business plan. Keep in mind that traditional loans can be harder to secure for newer businesses or those without strong financial records.
- Small Business Association (SBA) Loans – Uniquely designed to help small businesses hit the ground running, SBA loans are definitely worth a look. There are many benefits to them, including lower down payments, flexible overhead requirements, and some loans even require zero collateral.
- Alternative Lenders – Alternative lenders – like Community Development Financial Institutions (CDFIs) and microlenders – specialize in supporting underserved communities. These lenders often offer more flexible terms and conditions, making them a viable option for businesses with limited credit history or collateral.
Alternative Funding Options
- Crowdfunding – Think outside the bank! Crowdfunding platforms like Kickstarter and GoFundMe have democratized fundraising, allowing businesses to tap into the power of the crowd. Small businesses can leverage these platforms to raise capital from a diverse pool of investors, building brand awareness and community support along the way.
- Angel Investors and Venture Capital – Increasingly focused on impact investing, angel investors and venture capitalists can bring significant funding—as well as mentorship and connections—to the table. By showcasing your business's unique value proposition and social impact potential, you can attract investors who see your success as not just financially rewarding, but also socially impactful.
Get funding for your Small Business with FSU HUB!
Before you can secure any kind of lending, you need to have a rock-solid business plan. Whether you need help crafting your business plan or finding and securing capital for your Small Business, we can help here at Fayetteville-Cumberland Regional Entrepreneur & Business HUB.
Contact us today if you own (or want to start) a small business in one of the following North Carolina counties:
- Bladen County
- Columbus County
- Cumberland County
- Harnett County
- Hoke County
- Moore County
- Richmond County
- Robeson County
- Sampson County
- Scotland County
Discover how we can help your business thrive!
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