Resources for Funding Your New Business

new business funding
Business startup funding resources

With so many excellent business solutions resources available nowadays, the primary obstacle to creating a start-up company is funding. Luckily, you have a lot of options to help get your dream business up and running. However, the Federal Reserve Bank of New York suggests on its Web site that, rather than banks, start-ups should first seek money from “friends or relatives, partners, local development corporations, state and local governments offering low-interest micro loans or credit unions with small business loans.”

Sites like provide information on how to start your company using loans against 401K or IRA funds. There is also more serious debt financing available for many start-up businesses.

The US Small Business Administration (SBA) website offers programs for grants and loans. They certify lenders and help them simplify the loan application process, which expedites funding assistance to the small business community. Additional programs such as the “prequalification pilot loan program” specifically help minority-owned or female-owned businesses. In Q4 of last year alone, some of the top SBA lenders (such as Wells Fargo) arranged financing of over $1.3Bn to small businesses.

Equity financing at the early stage can also be found through business angel investors or business incubators. Even if you know very little about starting a business, resources like business accelerators are spreading across the U.S., aiding entrepreneurs in their pursuits by investing around “$25,000 for a 6 percent ownership stake.”

The Angel Investor Directory available at or offers access to global angel networks. Many geographic markets have local angel networks and/or incubators associated with their universities such as the Texas Venture Labs at the University of Texas in Austin that help small businesses refine their ideas, develop a “pitch” and connect with local angels.

Small business have generated 64% of net new jobs over the past 15 years, according to the U.S. Small Business Administration. As a result, now, more than ever before, America believes in the small business and plentiful resources are available to support your dream of starting your own business.

About the Author

James Kim is a writer for ChooseWhat is a company that provides product reviews and test data for business services and products. Their goal is to help small companies make informed buying decisions on business solutions that help their business.

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