Tag: Small

Why Small Businesses Should Invest in Cybersecurity

Small businesses are often at the greatest risk of cyberattacks because of their lack of resources and inability to invest in cybersecurity. However, with limited ability to protect the network from malware, ransomware, trojans and viruses, these attacks could lead to financial ruin.

Learn about the risks you can face if you do not prioritize cybersecurity.

What are the Risks?

The risks of not having adequate cybersecurity include the cybercriminal being able to access the following sensitive information:

  •       Client lists
  •       Customers’ credit card details
  •       Company financial data
  •       Internal pricing, product, and structure
  •       Designs, manufacturing details, and company secrets
  •       Usernames, passwords, and employee records
  •       Company processes leading to revenue

These risks have a serious impact on the company and can cause the entire business to fold if attacks are successful.

Credit Line Hybrid Financing: Get up to $150,000 in financing so your business can thrive.

The Impact of Cyber Attacks

The primary effect of a cyberattack involves financial damage. But these incidents can also cause irreparable harm to the company’s reputation. Some cybercriminals are looking to steal data rather than usernames or passwords. This may lead to identity theft or a ransomware attack that locks down all computers until the demand for monetary compensation is met. If you have to tell customers there was a breach, this can damage the company’s reputation. You may need identity monitoring for customers or employees to protect possible loss of credit details and personal identifiable information.

Why Small Businesses are Easy Targets

The susceptibility of a small business lies in the lack of properly secured computers, networks, and systems. However, there are many other reasons why they are targeted, including:

  1.     Data is valuable to anyone looking for it. Small businesses have plenty of it.
  2.     Hackers can mine cryptocurrency with access to computer data or use it for DDoS attacks on other businesses.
  3.     As an initial entry point, the small business can provide the cybercriminal with access to other financial institutions or businesses connected through its network.
  4.     Hackers have easier entry into the system to wreak havoc or steal data because there is no dedicated IT team.
  5.     Insufficient security measures lead to leaks in security with single computers and entire networks whether for work-at-home employees or daily processes.
  6.     Inadequate cybersecurity and a lack of employee education = about it can lead to a breach and theft of information for future use by hackers.
  7.     Financial data may provide hackers with sensitive customer details and connections to banks through leaks in security or breaches into the company.

How to Boost Your Cybersecurity

Adequate cybersecurity requires an understanding of what is lacking in securing your network. Having a dedicated IT team to support the company is vital. But it is not cheap. Boosting the business in this way requires covering the basics in software and hardware to defend against threats. And the company needs a business-wide policy on cybersecurity and employee education about possible cyber threats. This education should include how to handle mobile devices while on company grounds and away from them.

Keep security infrastructure up to date by automatically installing updates to your software. Continue improving and learn how to ensure software can spot possible problems. contingency plan in place. Business identity monitoring services can scan the dark web. They can look for stolen usernames, passwords, and personal identifiable information. Every business should have a response plan in place in case of a cyber attack.

Credit Line Hybrid Financing: Get up to $150,000 in financing so your business can thrive.

Cybersecurity Myths

If your employees and stakeholders are not aware of the potential risks, they are more likely to fall prey to cyberattacks. Here are some common myths that prevent businesses from taking cybersecurity concerns seriously:

  1.     The business is too small. But cybercriminals are willing to attack if there is any possibility of financial gain. 70% of small businesses report being victims of cyberattacks.
  2.     If no products are sold, there is no worry. Every company has information, financial transactions, and user data. Yet with malware, ransomware and data breaches, a hacker can make money.
  3.     The company has nothing of worth. But cybercriminals can hold business data hostage through ransomware and demand money to return access. Also, about 70% of attacks of ransomware involved small businesses in 2018.
  4.     Our company information cannot be breached. Password protection ensures a solid defense. But all it takes is one employee to click on the wrong link in email or text to lead to a data breach.
  5.     Employees are aware of phishing emails. But not all phishing uses email. So some attacks appear completely genuine. Instead, they may appear as vendors or customers.
  6.     Cybersecurity requires a one-time setup. Rather, proper cybersecurity is a never-ending, ongoing process.

Credit Line Hybrid Financing: Get up to $150,000 in financing so your business can thrive.

Conclusion

Cybersecurity is a vital part of any business. But with proper protocols in place, a plan, and a team dedicated to protecting the company, you can safeguard company information from many breaches. Also, always stay updated and remain informed of the newest changes in data security.

BIO

David Lukić is an information privacy, security and compliance consultant at IDstrong.com. The passion to make cyber security accessible and interesting has led David to share all the knowledge he has.

The post Why Small Businesses Should Invest in Cybersecurity appeared first on Credit Suite.

The Best Options for Small Business Startup Grants Revealed

Business grants are not easy to come by for anyone, but for startups, it’s a whole other story. Small business startup grants do exist.  However, they are even more competitive than grants for existing businesses. We have put together a list of some of the best options, along with some tips on funding startups if grants aren’t enough. 

Are Small Business Startup Grants Always the Best Option? 

There are a lot of options out there when it comes to small business grants. Who doesn’t want a grant?  After all, it’s free money. You don’t have to pay it back. I mean, what’s not to like?

Truly, grants sound like the perfect solution for business funding.  Actually, they are great if you can get one.  Yet, there are two cons most don’t realize.  Of course they are highly competitive.  But also, the money isn’t as free as you may think. Even though there is no interest and no repayment, it often takes a lot of time and effort to apply for a grant. Not to mention, sometimes there is an application fee. 

On top of the highly competitive nature of most grants, the result is that you could spend a lot of time and money applying for grants with nothing to show for it. 

Learn more here and get started with building business credit with your company’s EIN and not your SSN.

Why Are Startup Grants Different?

Unfortunately these problems are only magnified when it comes to small business business grants. There are far fewer grants available to startups.  That means the competition is even more fierce.  Furthermore, most of them are not open to just any business.

There are research and development grants, as well as grants for specific types of business owners.

Examples include: 

  • Veterans
  • Minorities
  • Women
  • And those in low income areas

Is It Even Worth it to Apply?

Due to the fact that it can be very hard  to get a grant, you may wonder if it’s even worth trying. That depends. Honestly, If the application process is fast and cheap, then yes, it is likely worth it. Of course, that is assuming you know that you meet all of the requirements. 

However, if you are not sure you qualify, and the application process is long or there is a large application fee, it might be best to skip it. Remember, you can use that time and money to pursue other funding options.

Best Options for Small Business Startup Grants 

We’ve put together a list of some of the easiest grants to qualify for.  Still, competition is still very tough.  Also, there are never any guarantees. We’ve divided them into the following categories: 

  • Open to all businesses
  • Innovation and Research
  • Women
  • Minorities
  • And veterans

Best Open to Any Small Business Startup Grant

FedEx Small Business Grant Contest

The FedEx Small Business Grant is one of the most popular small business startup grants around. The contest is open to any business that has been in operation for at least 6 months and has 99 employees or less.  It awards eight $7,500 grants, one $15,000 grant, and one $25,000 grant to winners each year.

Best for Innovation and Research

Small Business Innovation Research Program

This grant is designed to provide funding for scientific research and development. The business must be an organized for profit, with a place of business located in the United States. In addition, it must be more than 50% owned and controlled by one or more individuals who are citizens or permanent resident aliens of the United States. It can have no more than 500 employees. 

Learn more here and get started with building business credit with your company’s EIN and not your SSN.

Best for Women Business Owners

Amber Grant 

The Amber Grant awards one prize of $10,000 per month to a woman-owned business. One of the recipients also receives an additional $25,000 grant at the end of the year. Applicants only need to tell their story and turn it in with a $15 application fee.

Best for Minorities

The Minority Business Development Agency

The Minority Business Development Agency (MBDA) is operated by the US Department of Commerce. It is dedicated to helping minority-owned businesses access the resources they need to grow and succeed. They provide grants through their Minority Business Centers.

You can find grants available in your area by searching for your local Minority Business Center or visit the MBDA’s website for information on all current opportunities. You also need to have a D-U-N-S number to apply for these grants. Which is necessary for fundability anyway.

Best for Veterans

StreetShares Foundation’s Veteran Small Business Award

The StreetShares Foundation’s Veteran Small Business Award is for individual veterans who are low-income or otherwise lack the financial means to start their own business or nonprofit venture.  This grant is also available to surviving spouses and children. The winner must have a positive impact on the veteran community.

Honorable Mention

The InnovateHER small business challenge is sponsored by the SBA office of women’s business ownership. The program awards three winners $30,000 in prize money for businesses that have an impact on the lives of women. Awards are designed for products that meet certain standards including: 

  • Having a measurable impact on the lives of women and families (30%)
  • Having the potential for commercialization (40%), and
  • Filling a need in the marketplace (30%)

What if Grants Aren’t Enough?

It’s almost certain grants will not be enough. Of course, any free money is better than none at all.  Still, you cannot rely on grants alone to fully fund your business. Instead, one of the best things you can do for your business is build a strong business credit profile. 

A business credit profile is the credit history of the business itself, not the owner. It includes all business information and the business credit report, which reflects the business credit score.

To establish a business credit profile your business needs to be fundable. As a startup, this means starting now.  Get an EIN, incorporate, make sure you have a physical business address and open a separate, dedicated business bank account. 

Honestly, these things are good to have for a grant application anyway. After you establish a business credit profile, look for vendor credit that will report payments to your business credit report. Most importantly, always pay everything on time.

Learn more here and get started with building business credit with your company’s EIN and not your SSN.

Business Funding With Business Credit

In time, you will have a strong business credit score. Then, you can apply for business loans and lines of credit using your business information, and your business can basically fund itself. Any grant money you can get will be icing on the cake. 

The post The Best Options for Small Business Startup Grants Revealed appeared first on Credit Suite.

7 Tips for Successful Small Business Content Marketing

If you own a small business, content marketing is a tactic you should consider to grow your audience base and increase your brand’s name recognition.

Content marketing refers to the creation and dissemination of online materials that grow traffic to your website. Content types can include blogs, infographics, and whitepapers that are geared toward creating interest in your products or offerings. 

In this post, we’ll break down why business owners of every size should deploy a content marketing strategy and how to create one.

Why Should Your Small Business Do Content Marketing?

Serving up useful, timely content allows your business to become a thought leader in your industry, increasing your business’s recognition and building consumer trust, respect, and loyalty. 

Content marketing also allows you to identify your consumer’s pain points and speak to how your products solve those issues. This can lead directly to sales. 

Another lasting benefit of content marketing is any evergreen content you create. This refers to assets that do not become outdated, like blog posts about the history of your industry or an infographic on how to complete a process that doesn’t change.

You can also find use in content marketing when you create assets that can be used across multiple channels and marketing campaigns. For example, if you write a blog post about the needs of a certain community, you can create a YouTube video on the topic and use the video in your blog post. Then you can link to the post and/or video on your social media channels. This saves you time and money, all while firmly establishing you in your field of expertise.  

Small Business Content Marketing: 7 Steps for Success

The rest of this post will break down the seven steps every business owner should undertake to build a successful small business content marketing strategy. 

1. Start a Blog

Blogging is a completely free way to market your services and capabilities, while simultaneously establishing yourself as an industry expert.

In fact, with 21-54 blogs on your website, you can drive 30 percent more traffic to your website.

In addition to driving traffic, blogs can help:

  • boost your search engine optimization (SEO) rankings 
  • deliver increased value to your consumers
  • increase exposure 
  • generate leads and increase conversion likelihood 

Resources for Starting a Blog

To help you get started building your blog and giving a voice to your business, here are four resources to help make your blog dreams a reality:

2. Build a Social Media Presence on the Social Channels Your Audience Uses

If you’re actively involved in selling a product or service, you most likely have a social media presence of some variety.

Unfortunately, simply being present isn’t enough. You need to be active on platforms that your audience uses.

How do you choose which social media channels among the multitude of options are right for your brand?

Before you start posting anywhere, you need to identify your target audience. On social media, you’re not speaking to everyone; you’re speaking to a specific set of consumers with specific interests. After you’ve established who you’re speaking to, you must determine how to reach those individuals. 

You can use a variety of strategies to determine where your audience is active.

  1. Aggregate all existing consumer data to see where your audience is spending their online time.
  2. Visit your competitors’ social profiles to see where they have the most active users
  3. Use tools like Google Analytics to determine consumer online behavior.

These three steps can help you begin to identify where your target audience is active and begin delivering content to them on those particular platforms.

Resources for Building a Facebook Presence for Your Small Business

3. Start an Email Newsletter

Email newsletters are an excellent way for small businesses to wade into the world of email marketing. They alert your readers to new products, upcoming events, industry-related news, and any other notable business-adjacent happenings. 

With historically high return on investment (ROI), for every dollar spent on email marketing, expect an average ROI of $42. Email marketing is an excellent tool for small businesses to use. In addition to sheer ROI, email newsletters can help small businesses:

  • build goodwill with your audience
  • promote sales, deals, and coupons
  • increase customer value

Resources for Starting an Email Newsletter

4. Create Content Corresponding to a Basic Customer Sales Funnel

Finding the right consent to correspond to your consumer’s needs is key to getting them to actually make a purchase.

With a basic customer sales funnel and an accompanying content strategy, you can identify which stage of the funnel your customer currently occupies and deliver them content that speaks toward that stage.

A marketing funnel is the process people go through to reach the conversion phase. The funnel includes everything from getting introduced to your brand until they convert. Most marketing funnels have four steps: 

  1. Attention: a would-be consumer sees your ad, social media post, or learns about you through word-of-mouth
  2. Interest: consumer wants to learn more
  3. Desire: consumer wants to convert
  4. Action: consumer acts (buying your item, subscribing to your email newsletter, etc). 

To align this four-step process with your content creation, be sure you’re targeting customers within the various stages of the funnel with relevant content. For example, you wouldn’t want to overburden a potential consumer in the attention phase with an in-depth content asset.

Resources for Creating a Basic Sales Funnel/Content Journey

5. Build a Content Calendar

While it’s important to do the work to establish your buyer personas and to deliver them the content they need during their respective buyer’s journey stage, it is also important to keep delivering relevant content in a cadenced fashion.

Instead of scrambling to create content in a reactionary manner, build monthly calendars that include social posts, blog posts, emails, and whatever other content you would like to create that month.

Not only does this strategy keep you organized, but it also allows your readers to get comfortable with a schedule of content and to build continued trust and familiarity with your brand.

Resources for Building a Content Calendar

6. Create a Variety of Content Types

In a competitive landscape, it’s important to stand out however you can. One way your small business can achieve this is through your content marketing strategy.

Do a deep dive into both your existing content and your competitors’ content. See what is resonating with audiences and what isn’t. Once you’ve established efficacy, it’s time to try to replicate that success with your upcoming content. 

Then it’s time to get creative. Don’t be limited by what already exists. Take your latest blog post and turn it into an infographic. Take your infographic and turn it into a whitepaper. Take your white paper and make it a series of quote-centric social tiles.

The content creation possibilities are limitless.

Resources for Building a Diverse Content Library

7. Mine Customer Reviews and Testimonials

97 percent of local consumers use online media, including reviews, to search for local services. If you’re a small, local business, that means your reviews are driving your business. 

Make those reviews work as hard as you do by bringing them to life through social posts and testimonials on your website and blog.

By sourcing the best quotes and ascribing a face to the name, you make that review much more personal, creating a consumer-generated ad that speaks for itself.

Resources for Building Effective Customer Testimonials

How to Create a Small Business Marketing Strategy

  1. Fine-tune your buyer personas

    Building buyer personas allows you to establish a better understanding of your audiences and their respective pain points. By determining who is purchasing your products, you can assess which content they need and when. 

  2. Identify valuable consumer content 

    Consumers don’t want content for content’s sake. They want content that can solve their problems. After you’ve identified buyer personas, work to identify what content assets can best serve your buyers’ unique needs. 

  3. Set business goals

    Setting business goals that align with your marketing strategy can feel overwhelming at first. Use the principle of SMART goals to make your benchmarks reasonable and reachable. small business content marketing goals

  4. Solidify distribution channels 

    You’ve got your content ready to go and your goals ready to measure. It’s finally time to start sharing your content. While it would be nice if every piece of content performed well on every channel, that’s sadly not the case. Determine which pieces of content are appropriate for which channel to ensure success and reach. 

  5. Establish cadence 

    It’s not good enough to deliver one piece of content and rest on your laurels. You must establish a cadence that regularly delivers quality content to your consumers. 

Small Business Content Marketing Frequently Asked Questions

Why do small businesses need content marketing?

Even though you’re a small business, you most likely have big competition. To make your business stand out among the crowd and grow your audience, you need a content marketing strategy that allows you to demonstrate your value to future and current consumers. 

What are some examles of content marketing?

Examples of content marketing include blog posts, infographics, social media campaigns, podcasts, white papers, ebooks, downloadable PDFs, and YouTube videos. Any type of media that is free to access and brings in leads to your website is content marketing.

What is the best content marketing strategy for a small business?

Having clearly delineated buyer personas is vital for a strong, small business content marketing strategy. Without these personas, your content won’t have clear direction or purpose, resulting in low audience interaction.

How should small businesses create content for their content marketing strategy?

Small business content marketing is all about solving for the buyer’s pain point. After you’ve identified personas, all created content should center both around the respective pain points and what point the buyer is within the funnel. 

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Small Business Content Marketing Conclusion

While your small business content marketing may be minuscule, it doesn’t mean that you can’t undertake most, if not all, of the above eight strategies.

After successfully defining your buyer personas, you’re well on your way to developing a winning content marketing strategy that can grow your audience and increase overall sales. 

What’s the most effective strategy you’ve seen for small business content marketing?

10 Kinds of Financing for a Small Business – Including Options You’ve Probably Never Heard Of

How Many Kinds of Financing for a Small Business Can YOU Name?

You may be surprised at the many kinds of financing for a small business there are.

Fundability

Any discussion of business financing has to start with fundability. Fundability is the ability of a business to get funding. It covers all the points a lender or credit provider will look at when they’re trying to figure out if you’ll pay back a loan or credit extended to you. These include factors you probably haven’t thought about or might think aren’t so important. Business details like address and entity all matter. But there’s more.

The 3 Cs Capital Acquisition Formula

When you think like a lender, you realize they just want to be sure that you’ll pay them back. Lenders look at one of three things for loan approval: cashflow, collateral and/or credit. The more of these “Cs” you have, the more funding options are available. For the forms of funding we’re showcasing today, we show you exactly what you need to have for approval.

Two More General Ways to Get Funding

If you have absolutely none of the 3 Cs, there are still two other options: selling a part of your business or grants and crowdfunding. Let’s look at types of funding covering all of these options. We’ll start with financing via your business’s cash flow.

#10. Financing for a Small Business with Cash flow: Cash Flow Financing

A loan made to a company is backed by a company’s expected cash flow. A company’s cash flow is the amount of cash that flows in and out of a business, in a specific period. Cash flow financing (or a cash flow loan) uses generated cash flow as a means to pay back the loan.

Cash flow: Cash Flow Financing: Terms and Qualifying

Often you will need to have a few years in business. You may need to meet a certain minimum credit score requirement. You will need to prove historical cash flow and present your accounts receivables and accounts payables. This way, the lender can determine how much to loan to your business.

#9. Financing for a Small Business with Cash flow: Merchant Cash Advances

An MCA technically isn’t a loan. Rather, it is a cash advance based upon the credit card sales of a business. A small business can apply for an MCA and have an advance deposited into its account fairly quickly. So you can offer Net 30 terms but not have to wait a month to get paid.

Merchant Cash Advances

A merchant financing program is ideal for business owners who accept credit cards and are looking for fast and easy business financing. An MCA program is designed to help you get funding based strictly on your cash flow, as verifiable per your business banks statements. Hence lenders in general will not ask for any burdensome document requests.

Terms and Qualifying

A lender will review 3 months of bank and merchant account statements. They are looking for is consistent deposits. And they want to see deposits showing revenue is $50,000 or higher per year. They will also verify time in business of 6 months or more.

Lenders are also looking to see that you don’t have a lot of Non-Sufficient-Funds (NSFs) showing on your bank statements. They want to see you don’t have a lot of chargebacks on your merchant statements. And they want to see that you have more than 10 deposits in a month going into your bank account. They want to see that you manage your bank and merchant accounts responsibly. And they want to see that have a decent number of consistent credit card transaction deposits each month.

Let’s move onto funding based upon collateral – either yours, or a credit partner’s, or from the business itself.

Demolish your funding problems with 27 killer ways to get cash for your business.

#8. Financing for a Small Business with Collateral: Inventory Financing

Inventory financing is a revolving line of credit or a short-term loan acquired by a company so it can purchase products for sale later. The products serve as the collateral for the loan. There may be restrictions on the type of inventory you can use. This can include not allowing cannabis, alcohol, firearms, etc., or perishable goods. There can be revenue requirements. And there may also be minimum FICO score requirements.

Terms and Qualifying

Get approved for a line of credit for 50% of inventory value, regardless of personal credit quality. Rates are usually 5 – 15% depending on type of inventory. You can get funding within 3 weeks or less. But it can’t be lumped together inventory, like office equipment.

#7. Financing for a Small Business with Collateral: Account Receivables Financing

You can use outstanding account receivables as collateral for financing. If you also have purchase orders,  you can get financing to have those filled. You won’t need to use your cash flow to do so. Get an accounts receivable credit line with rates of less than 1% with no consumer credit requirement. Receivables should be with the government or another business.

Terms and Qualifying

Get as much as 80% of receivables advanced ongoing in less than 24 hours. Remainder of the accounts receivable are released once the invoice is paid in full. Factor rates are as low as 1.33%. You can get an accounts receivable credit line with rates of less than 1% with no consumer credit requirement.

Now it’s time to move onto funding with good personal credit (FICO) scores.

#6. Financing for a Small Business with Good Personal Credit: Credit Line Hybrid

A credit line hybrid is a form of unsecured funding. Our credit line hybrid has an even better interest rate than a secured loan. Get some of the highest loan amounts and credit lines for businesses. Get 0% business credit cards with stated income. These report to business CRAs. You can build business credit at the same time. This will get you access to even more cash with no personal guarantee.

Terms and Qualifying

You need a good credit score or a guarantor with good credit to get an approval (a FICO score of at least 680). There are no financials required. You can often get a loan of five times the amount of current highest revolving credit limit account. So this is up to $150,000.

#5. Financing for a Small Business with Good Personal Credit: Bridge Loans

A bridge loan is a short-term loan used until a person or company secures permanent financing or removes an existing obligation. It allows the user to meet current obligations by providing immediate cash flow. Bridge loans are short term, up to one year. They have relatively high interest rates. And they are often backed by some form of collateral, like real estate or inventory.

Bridge Loans via Our Credit Line Hybrid

The Credit Suite Credit Line Hybrid has a term loan program. This bridge loan works as either an add-on to, or in lieu of, the program, when the applicant meets eligibility and is agreeable to either a portion (or all) of their funding, supplied in the form of cash term loans. There is a fixed monthly repayment.

Terms and Qualifying

The Credit Suite program is an aggregate program requiring multiple accounts to meet our prequalification. Get $25,000 to $300,000 per applicant. The APR is 7 – 24% depending on creditworthiness and selected term. Terms are 3, 5, or 7 years. You must have a 680 FICO or better, and over $35,000 in adjusted gross income. Actual pre-qualification will depend on Debt-to-Income ratio.

#4. Financing for a Small Business with Good Business Credit: Start with Vendor Credit and Retail Credit

Starter vendors are open to working with most businesses, even startup ventures. Make sure vendors report to the CRAs – not all do. Vendors report to the business CRAs within 60 days. They help you build your business credit profile and score. Terms will vary depending on the vendor, but they tend to be Net 30. And you will not need collateral, good personal credit, or cash flow.

Move onto Retail Credit

Retail credit comes from major retailers. Buy everything from office supplies to power tools. Retailers will check whether your business information is uniform everywhere. They will also check whether your business is properly licensed

Terms and Qualifying

Qualifications will vary, and there can be a minimum time in business requirement. There may even be a minimum number of employees requirement, or a minimum annual sales requirement. Terms can be revolving. You will need at least 3 (5 is better) accounts reporting to the business CRAs.

#3. Financing for a Small Business with Good Business Credit: Fleet Credit and Bank Credit Cards

Fleet credit is used to buy fuel, maintain vehicles of all sorts, and repair vehicles. Even businesses which don’t have big fleets can still benefit. These are usually gas credit cards. Requirements will vary. There may be a minimal time in business requirement. If your business doesn’t make the time in business requirement, you may be able to instead offer a personal guarantee or give a deposit to secure the credit.

A Look at Bank Credit Cards

More bank credit cards are more universal, like MasterCard. So they can be used pretty much anywhere. These cards may even have rewards programs. Terms can be revolving. Usually, you will need to have at least 14 accounts reporting to the business CRAs. There can be longer time in business requirements. And there may also be minimum number of employee requirements.

Now let’s look at financing you can get if you’re all right with sharing the profits and ownership of your business.

Demolish your funding problems with 27 killer ways to get cash for your business.

#2. Financing for a Small Business via Selling Part of Your Business: Angel Investing

Angel investors invest in small startups or entrepreneurs. Often, angel investors are among an entrepreneur’s family and friends. The capital they provide may be a one-time investment to help the business get started, or an ongoing injection of money to support and carry the company through its early stages. Angels are not covered by the Securities Exchange Commission’s (SEC) standards for accredited investors.

Angels could be friends or colleagues sitting on home equity, or local professionals who are looking to invest. Consider people you know well and people you don’t know so well. But keep in mind, you’re giving up part of your ownership in your business.

Angel Investing: Terms and Qualifying

Angels are informal investors so there really aren’t any terms. Technically, there is nothing done for qualifying although investors may (probably should) insist on a valuation of your business. But no matter what, it’s always a good practice to get everything in writing.

#1. Financing for a Small Business via Selling Part of Your Business: Equity Crowdfunding

This is not the same as reward-based crowdfunding (like from Kickstarter). Equity crowdfunding is a stock offering from a company that is not listed on stock exchanges. Equity crowdfunding has been around for less than 10 years. Potential investors visit a funding portal website. There, they can explore different equity crowdfunding investment opportunities. Note: there are limits on how much capital an individual can invest based on their income and net worth. Equity crowdfunding gives investors a stake in your business.

Terms and Qualifying

Equity crowdfunding tends to be covered by complex federal law. It is best practices to consult with an attorney well-versed in federal law, specifically, securities and corporations when it comes to interpreting terms and qualifications. A lawyer will also be able to comprehend any changes that may be made to these aspects of the law in the future.

Let’s move onto kinds of funding you don’t need to pay back.

Bonus #1. Financing for a Small Business via Federal Grants

Federal grants generally do not have to be paid back. Try HUD (Housing and Urban Development) for urban projects. Try the USDA (Department of Agriculture) for rural projects. Federal funding means paperwork. You often must show experience in what you are proposing.

Terms and Qualifying

Grants have varying qualifications. They are very competitive. Be sure to check information thoroughly. This includes due dates and any necessary paperwork. Some grants may offer preferences to businesses with minority, female, veteran, or disabled ownership.

Bonus #2. Financing for a Small Business via Reward-Based Crowdfunding

You can get money from the crowd for your business. Start with a service like Kickstarter. But make sure you read the fine print (always a good idea!). Many crowdfunding platforms make you give all the funding back if you do not make your goal by the end of the campaign. But Indiegogo has a flexible funding option.

Reward-Based Crowdfunding

Crowdfunding platforms will take a percentage of the donations. That’s how they make their money. Crowdfunding platforms may push to have you deliver on your promises. So you’ll have to actually manufacture a product or do whatever else your business is supposed to be doing. Given how much social media we’re all bombarded with these days, it should come as no surprise that donors can become weary of crowdfunding pitches.

Details

Crowdfunding tends to work best when donors can personally connect with a product or service. Straightforward businesses may not do so well. The kinds of businesses which do the best often associate with products not quite on the shelves yet, or artistic endeavors. But standard widgets will most likely not attract brand ambassadors. They probably won’t get donors too fired up. Because crowdfunding campaigns are time-consuming, it doesn’t make sense to try this form of funding unless you realistically feel your chance of success is better than 50%.

Terms and Qualifying

Terms will differ depending on which platform you use. Check and make sure your platform of choice will allow your industry to work with them. For example, even though recreational cannabis use is legal in Massachusetts, Kickstarter (for example) doesn’t allow fundraising for drugs, nicotine, tobacco, vaporizers, and related paraphernalia. Any major crowdfunding platform has a section for rules, a FAQ, or ‘how it works’. Be sure to read such a section thoroughly so you know exactly what you’re getting yourself into.

And now let’s look at funding via creative and different means you may not have considered or heard of before.

Demolish your funding problems with 27 killer ways to get cash for your business.

Bonus #3: Financing for a Small Business via 401(k) Financing

This is not a loan. You will not have to pay an early withdrawal fee or a tax penalty. You put the money back by contributing, just like with any 401(k) program. This means you won’t lose your retirement funds. This is a 401(k) Rollover for Working Capital program. The IRS calls it a Rollover for Business Startups (ROBS).

401(k) Financing

Per the IRS, a ROBS qualified plan is a separate entity with its own set of requirements. The plan, through its company stock investments, rather than the individual owns the trade or business. Therefore, some filing exceptions for individuals may not apply to such a plan. This type of financing isn’t a loan against, your 401(k), so there’s no interest to pay. It does not use the 401(k) or stocks as collateral. Instead, this is simply a movement or change of custodian.

Terms and Qualifying

Pay low rates, often less than 5%. Your 401(k) will need to have more than $35,000 in it. You can usually get up to 100% of what’s “rollable” within your 401(k). The lender will want to see a copy of your two most recent 401(k) statements. You can get 401(k) financing even with severely challenged personal credit. The 401(k) you use cannot be from a business where you are currently employed. You cannot be currently contributing to it.

Bonus #4: Financing for a Small Business with Microloans

Microloans are business loans with relatively low interest rates. Generally, these loans are offered to small or developing businesses with modest capital requirements and little to no revenue history. Microloans — as the name suggests — are smaller loans than a traditional bank loan. They generally offer anywhere from $500 to $50,000 in business financing.

Terms and Qualifying

Terms and requirements vary among providers. Kiva, for example, charges 0% interest. The Opportunity Fund provides loans to low- and moderate-income immigrants, women, and other underserved small business owners. Accion requires a cosigner. Check the specific requirements of any microloan program that interests you

Bonus #5: Financing for a Small Business via SBA 7(a) Loans

This the SBA’s most popular loan. The SBA guarantees 85% for loans up to $150,000. They guarantee 75% for loans greater than $150,000. The SBA makes the lending decision, but qualified lenders may be granted delegated authority to make credit decisions without SBA review.

Terms and Qualifying

The maximum amount on offer is $5 million. You will have to provide Articles of Organization, business licenses, documentation of lawsuits, judgments and bankruptcy or other pertinent documentation. Lenders are not required to take collateral for loans up to $25,000. For loans in excess of $350,000, the SBA requires that the lender collateralize the loan to the maximum extent possible up to the loan amount.

10 Kinds of Financing for a Small Business: Takeaways

There are all sorts of amazing ways to get business funding. You can find the one which fits your circumstances. This includes your strengths in areas like personal credit, collateral, cash flow, selling a part of your business, and getting grants or crowdfunding. Let us help!

The post 10 Kinds of Financing for a Small Business – Including Options You’ve Probably Never Heard Of appeared first on Credit Suite.

Ditch the Boss…Here’s How to Start a Small Business With No Money

Do you dream of starting your own small business but have no clue how to finance it? The number one thing that stands in the way of those who want to start a business, assuming they already have an idea of the type of business they want to start, is that they have no money. A general rule of life is it takes money to make money. While in a way this is true, it’s not always as cut and dry as it seems. Find out how to start a small business with no money.

No Money? No Problem! Try These Tried and True Tips for How to Start a Business with No Money

Ok, so let’s be real.  It actually does take money to start a business.  However, it doesn’t have to be money you already have. In fact, it doesn’t even have to be your money at all!  Here are some creative ideas for how to start a small business with no money, or rather, how to get the money you need to make your small business dreams come true.

Credit Line Hybrid Financing: Get up to $150,000 in financing so your business can thrive.

How to Start a Business With No Money

So, you do need money to start and grow a business, and we are going to show you how to get it. Yet, you don’t have to wait to start.  Start your business now, and grow it from the ground up.

1. Start Small

Facebook was started by college roommates in their dorm room, Microsoft was birthed in a garage by a college drop out, and Hewlett- Packard got started with less than $600. These are just a few of the many major companies that started out very small and with little capital.  After all, how many people actually remember that Amazon used to be an online bookstore?

Starting small is essential, especially if you are wondering how to start a small business with no money. Cut out as much overhead as you can and focus on getting your product to the customers.

2. Keep Your Day Job…For Now

It will be a challenge for sure, but working your business outside of your regular working hours, while keeping your current job if you have one, will allow you to put any profit from your business back into your business.  In essence, your business will be funding itself.

3. Keep Early Marketing Simple

In the early stages, simple is best. Offer free samples, leverage word of mouth, and start a Facebook page. As you build funds, you can increase your marketing strategy as well.

Be strategice as well. There is no need to market to the masses initially.  Keep it narrowed down to the market that you know will be interested.

How to Start a Small Business With No Money: Leverage Your Assets

Now, you do need to figure out how to get the funding you need.  If you have no money, you may struggle to get a small business loan.  As you are starting small and building revenue, consider what  assets you can leverage to get the cash you need.

There is always the option to use  your home or land as collateral for a loan.  Pretty much any bank will do that.  Yet, that understandably makes many uncomfortable. There are some better options.

401K Financing

401K financing is a flexible and powerful way to leverage assets that are in a 401(k) plan or IRA.  In as little as 3 weeks you can actually invest a portion of these funds into your own business. Then, you not only have more control over the performance of your retirement plan assets, but you also have the working capital you need.

This type of program even has the blessing of the IRS. In fact, they  have their own term for it. It’s called a Rollover for Business Startups (ROBS).

You do not have to submit financials or have good credit to get approval. In fact, all the lender will ask for is a copy of your two most recent 401(k) statements.

If the plan has a value of more than $35,000,  you can get approval. This is true even if you have bad personal credit. You can get however much of your 401(k) is “rollable.”

The plan you use cannot be from a business where you currently work. It will have to be from previous employment. Also, you can’t still be contributing to it.

Equipment Financing

This is a great option if you need equipment for your business and have no money to purchase it.  Equipment financing allows you to purchase or borrow hard assets for your business using said asset as security for the loan. You can use it to buy or lease any physical asset. This can include items like an industrial freezer in a restaurant or an oven or a company car.  You name it.

How to Start a Small Business With No Money: Use a Guarantor

What if you have no money and no assets? What then? You still have options. The easiest way to get funding for a business if you can’t do it on your own is to use a guarantor. Many entrepreneurs have friends or family that will sign a loan with them. Doing so tells the lender that, if you default, your guarantor will be responsible for the payments.

This is a better option for many, because the guarantor isn’t out any money up front, and they only have to pay if you do not.  Keep reading for one of our favorite options for guarantor funding.

Credit Line Hybrid Financing: Get up to $150,000 in financing so your business can thrive.

Credit Line Hybrid

What if there were a way to fund your business with 0% interest? The Credit Line Hybrid allows you to fund your business without putting up collateral, and you only pay back what you use.  Generally, you do need a personal credit score of 680 or above, and you can’t have any liens, judgments, bankruptcies or late payments.  However, if you do not meet the requirements, you have the option to take on a credit partner, which is in essence a guarantor. And yes, you can often get 0% interest for up to 18 months!

The great part is, this program reports payment to your business credit profile, meaning you build your business credit score regardless of whether you have a guarantor or not.

How to Start a Small Business With No Money: Other Options

If you do not have assets, your personal credit is not great, and you can’t find a guarantor, all is not lost. Here are some other possibilities.

Crowdfunding

Crowdfunding allows you to access tons of investors at once, and test the market at the same time. You market your business on the platform, and anyone who wants to can invest in the company.  Some platforms will even accept donations as low as $5 or $10 dollars, though most do require more.  With rewards-based crowdfunding, you get a trinket of thanks for your donation.  This may be anything from a thank you note to a free product.  With equity-based crowdfunding, which almost always requires $500 or more, investors get a piece of the company. There are a ton of crowdfunding sites to choose from, you just have to pick the one that will work best for your business.

One unique program is Kiva.  The money you get has to be repaid, but the loan is crowdfunded.  The interest rate is 0%, so even though you do pay it back, it’s free money.  You have to get at least five of your family and friends on board to donate to your business, and then you have to lend $25 to another company on the Kiva platform.

After that, submit a thorough business plan and you could be well on your way to a 0% interest loan.

Angel Investors

Now, an angel investor from an angel firm is going to want to know you have some money already, likely. But you don’t need to go through an angel firm, because anyone can be an angel investor. That includes friends and family, even your mom!  So, this is definitely an option if needed.

Credit Line Hybrid Financing: Get up to $150,000 in financing so your business can thrive.

Is it Even Possible to Start a Small Business Without Money?

In the strictest terms, no.  You have to have funds to start a business. However, there are ways to fund your business without having money in the first place. While knowing how to start a small business with no money is important, it is always important to understand how to set your business up to get the funding it needs into the future as well.

The key to that is to start building business fundability from the beginning. As you consider funding options for your small business startup, look for those that will help you build fundability.  As you set up, set your business up in a way that will help it become more fundable.  These things are best done at the beginning.

You can discover what funding options are available to you right now, and get a head start on fundability by speaking with one of our business credit experts.  Try a free consultation now!

The post Ditch the Boss…Here’s How to Start a Small Business With No Money appeared first on Credit Suite.

Inflation and Your Small Business

Inflation Can Affect Your Small Business – But is it Coming at all?

How does inflation affect small businesses like yours? And is it really on the horizon, anyway? Experts aren’t sure.

Prices are starting to go up. Wages are sometimes keeping up. Everyone has experienced it. You’ve undoubtedly noticed that fuel prices go up and down, or a movie costs more than it used to. And if you’ve had to have construction done, you may have noticed the price of lumber rocketing up.

It’s not your imagination. According to US News and World Report, “Prices for materials and components used in construction spiked 4% in May from April and were up over 17% from a year earlier, according to the Labor Department. Manufacturers paid 2% more last month for materials than they did in April and 21% more than in May 2020. Also in the mix: intense competition for workers that has some companies paying more to attract new hires and retain current staffers.”

What is Inflation?

According to Forbes, “Inflation occurs when prices rise, decreasing the purchasing power of your dollars.”

Seems simple enough. But it goes beyond a few higher prices on one or two goods or services. Rather, it’s an across the board increase in prices, across a sector or an industry.

In small doses, it’s actually good for the economy. It pushes consumers to buy, rather than save. Because holding onto funds means their value will diminish over time. Buying, of course, keeps small businesses viable.

Is Inflation Really Going Up?

You’d better believe it. Check out this chart from YCharts. “The US Inflation Rate is the percentage in which a chosen basket of goods and services purchased in the US increases in price over a year.”

Per the chart, June of 2020 had a rate of 0.65%. But about a year later, this same metric is up to 4.99%. Particularly concerning is the fact that the rate has leapt up in the last few months – from 2.62% in March 2021, to the near-5% recorded last month.

That YCharts page goes back to April of 2017. The rate has stayed at 2.95% or less until April of 2021, when it was already over 4%. That was a historically large increase.

How Does it Affect Small Businesses?

Beyond price increases for goods and services, it can also affect how you price your own goods and services. Whether your business serves consumers, other businesses, or the government, it doesn’t matter. Inflation will cut into your profit margin. That is, unless you raise your prices. And then your business customers raise theirs, thereby perpetuating the cycle. Or your government clients print more money or borrow and rack up municipal debt. Or your individual customers buy less. They may even take their business elsewhere.

Demolish your funding problems with 27 killer ways to get cash for your business.

What if There Was Another Way to Get a Cash Infusion Without Having to Jack Up Your Prices?

What you need is business capital. This is the money or wealth needed to produce goods and services. In the most basic terms, it is money. All businesses must have to buy assets and maintain their operations. Business capital comes in two main forms: debt and equity.

Getting capital for business financing should be your concern. That’s regardless of what the economy may be doing.

Business financing is the act of leveraging debt, retained earnings, and/or equity. Its purpose is to get funds for business activities, making purchases, or investing. This is the act of funding business activities.

With lower retained earnings and perhaps less equity, it’s time to leverage debt.

How to Request a Credit Line Increase to Keep up with Inflation

Start off by understanding that some credit cards and lines won’t be eligible for an increase. For example, secured business credit cards are limited by how much you put in to secure them. Can you get a higher credit line with a secured credit card by putting in more money to secure it? It depends on the issuer.

Another class of cards and lines that tend to not be eligible for increases? New credit cards and lines. Providers like Capital One won’t increase a credit lines for new accounts opened within the past several months.

Providers may also want to allow for some time between credit line increase requests. But the amount of time in between isn’t a standard in the credit industry.

Requesting a Credit Line Increase

Let’s operate under the assumption that the standard reasons for denial do not apply. How do you actually ask for a credit line increase?

First off, you need to approach this task from a position of strength. This means paying off your balances as much as possible. It also means waiting for at least one billing cycle to elapse so the newer, lower balance will show up.

Reporting all your income will also be helpful. Because your card or credit line issuer only wants to know if you can pay them back.

The provider may very well ask why you’re looking for a credit line increase. And your provider may ask for some documentation, such as annual revenue and expenses. Having this information at your fingertips will go a long way toward getting to a ‘yes’.

Demolish your funding problems with 27 killer ways to get cash for your business.

Asking for a Credit Line Increase – How to

In general, you can make your request either by phone or online. At Bank of America, for example, you sign into online banking. Go to Account Summary, then Card Details, and then Request a credit line increase. Or you can call their Customer Service Info Line, at (​800) 732-9194.

Don’t ask for an enormous amount. If your credit limit is currently $10,000, you’re most likely not going to get an increase to $50,000 all in one shot. But an increase to $15,000? If your balances are good, then it’s very possible.

Credit Line Increases: the Pros and Cons

The most obvious pro is getting access to more debt for business financing. But recognize one major con – the likelihood of a hard inquiry. Hard inquiries can bring your credit score down. But if you truly need the increase and have a good credit score to begin with, then requesting an increase is a good idea. The positives, in this instance, would outweigh the negatives.

Demolish your funding problems with 27 killer ways to get cash for your business.

More Business Financing Choices to Combat Inflation

Most of our business financing options can help address the inflationary elephant in the room. Consider our Credit Line Hybrid. You can get several business credit cards, applied for at the same. They provide 0% rates and cash out capability. If you or a credit partner have good personal credit scores, then these are within reach.

Address Inflation Head-on By Borrowing NOW

If interest rates are climbing, borrowing today could say money over borrowing tomorrow. This goes for more than credit cards and lines, but also business loans.

Or Invest NOW

Keeping rapidly depreciating cash on hand won’t do you any favors. Of course you will always need some cash on hand. But if you can pump some of it into an exchange-traded fund or a mutual fund, you can be putting your surplus to work.

But two caveats apply. One, past performance is never a guarantee of future results. And two, always talk to a financial professional before making any investments.

Takeaways

The economy is a little like the weather. It will change, whether we want it to, or not. But you can take some steps to help your small business, both now and in the future. Your small business can get the upper hand over inflation, and come out stronger than ever.

The post Inflation and Your Small Business appeared first on Credit Suite.

Get Grants for Small Black Owned Businesses

Check out Business Grants for Small Black Owned Businesses and So Much More

Are you one of the millions of black business owners in the US? Or are you starting a business? Money is always going to be an issue. What if you could get what is essentially free money? That’s what grants are (for the most part). Yes, you can get grants for small black owned businesses.

Looking for Grants for Small Black Owned Businesses – and Other Options

How do you find the best options for you?  How do you know if you need to be looking for grants or business loans? We recommend that you explore every option. This is because it will probably take a combination of funding options to fully fund your business.

Funding and Grants for Small Black Owned Businesses

There are grants for black business owners, but not necessarily for them exclusively. Still, there are other funding choices out there. Loans, crowdfunding, and even angel investors are all viable options. More on those later.

Business Grants for Small Black Owned Businesses

The government and private organizations want to GIVE you money! Though highly competitive and rarely enough to fund a business on their own, grants are a great way to supplement other business funding. And they are still worth the effort to apply. There really isn’t anything to lose except time – it’s free money. Here are a few you can start with.

The Minority Business Development Agency

The Minority Business Development Agency (MBDA) is operated by the US Department of Commerce. It is dedicated to helping minority-owned businesses access the resources they need to grow and succeed. The MBDA is for both men and women. Grant competitions are regularly changing.

Visit the MBDA’s website for information on all current opportunities. Currently, the MBDA helps its members apply for grants via Grants.gov. This involves help with how to apply for government grants. See mbda.gov/grants.

Enterprising Women of Color Initiative

The MBDA oversees the Enterprising Women of Color (EWOC) Initiative. The initiative works to focus on the fast-expanding minority women entrepreneur population as a revenue generators for families, communities, and the nation. Minority women are the fastest growing population of entrepreneurs. While many women are making tremendous strides in the business world, they still face obstacles as entrepreneurs.

MBDA serves as an advocate for women’s economic empowerment, by supporting efforts to advance women’s equality and promote women economic advancement programming. The vision of EWOC is to ensure women worldwide to reach their economic potential. See mbda.gov.

The Verizon Small Business Recovery Fund

The Verizon Small Business Recovery Fund is new. It was established in response to the COVID-19 pandemic. The fund offers $10,000 to successful applicants. The fund is specifically focused on providing grants to business owners of color, women-owned businesses, and other underrepresented entrepreneurs. See lisc.org/covid-19/small-business-assistance/small-business-relief-grants/verizon-small-business-recovery-fund

National Black MBA Association Scale-Up Pitch Challenge

Also known as NBMBAA, the Scale-Up Pitch Challenge has cash prizes ranging from $1,000 to $50,000. The association states its purpose is to help newer businesses that have an African American ownership. This is a pitch competition for startup businesses. See nbmbaa.org/scale-up-pitch-challenge.

Demolish your funding problems with 27 killer ways to get cash for your business.

Amber Grant

Black businesswomen have even more options open to them. The Amber Grant awards one prize of $10,000 per month to a woman-owned business. One of the recipients also receives an additional $25,000 grant at the end of the year. Applicants only need to tell their story and turn it in with a $15 application fee. See ambergrantsforwomen.com/get-an-amber-grant/apply-now

Cartier Women’s Initiative Award

Black businesswomen can also try for a Cartier award. This award is for women and there’s no specification that a woman be a member of a minority group. The Cartier Women’s Initiative Award has a regional category award and a science and technology award. The regional award is $100,000 for first place, with $30,000 for second and third place.

The award goes to three women from each of seven international regions. This award is a grant to 21 female business owners from around the world each year. Women business owners who are just getting started may qualify. Look over the complete application for more information. See cartierwomensinitiative.com/about-us

Cartier Science and Technology Pioneer Award and Fellowship

The Cartier Science and Technology Pioneer award is new as of 2021. With this award, three more women impact entrepreneurs at the forefront of scientific and technological innovation will be recognized for a new thematic award. Open to women entrepreneurs from any country and sector, this award will highlight disruptive solutions built around unique, protected, or hard-to-reproduce technological or scientific advances.

The laureate will be awarded a $100,000 grant. Each of the two remaining finalists will receive a $30,000 grant.

Cartier also offers a fellowship program. The fellowship is an educational program geared towards the 24 fellows selected each year. This program aims to equip the fellows with the necessary skills to grow their business. Also, it helps them to build their leadership capacity by drawing upon the experience and expertise of an array of academics, practitioners, industry experts, and entrepreneurs.

The fellowship isn’t exactly a grant. But while it’s not a monetary award, the mentoring and networking opportunities could be worthwhile to apply for. See cartierwomensinitiative.com/fellowship-programme.

Demolish your funding problems with 27 killer ways to get cash for your business.

The Native American Business Development Institute (NABDI) Grant

Are you also part Native American? Then check out this grant.

The NABDI Grant is funded by the US Department of the Interior’s Bureau of Indian Affairs. It provides funding to business owners of Native American or Alaskan Native descent. In 2019, the program provided more than $727,000 to 21 indigenous tribes, to support economic feasibility studies for specific economic development projects or business startups.

For 2020, NABDI planned to award 20-25 grants. There is no minimum or maximum amount of funding that can be requested, but most awards range in value from $25,000 to $75,000. They only fund projects for one year at a time, which is when they expect projects to be completed. To apply for a NABDI grant for your proposed economic development feasibility study, go to bia.gov/service/grants/tedc/apply-nabdi-grant.

Indian Affairs

For black business owners who also have Native American heritage, it doesn’t stop there. There is more available via the Bureau of Indian Affairs. Businesses owned by Native Americans can get financing from the federal government through the Indian Affairs branch. An individual can fill out an application for up to $500,000, but business entities and tribal enterprises may apply for more.

Potential borrowers can apply with any lending institution, they just have to use the application for Indian Affairs. There are additional requirements if you use the funds for construction, renovation, or refinancing. In general, you must supply a list of collateral, a credit report, and an analysis of business operations. See bia.gov/as-ia/ieed/loan-guaranty-insurance-and-interest-subsidy-program.

The South Asian Arts Resiliency Fund

If your business is in the arts, and you’re also of South Asian descent, then check out this fund. The fund is run by the India Center Foundation. It supports US-based South Asian arts workers impacted by the COVID-19 pandemic.

The fund will disburse grants up to $2,000, depending on financial need to US-based arts workers of South Asian descent. This includes those in the performing arts, film, visual arts, and literature with heritage from Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka. Initial funding for the program is $20,000, but the India Center Foundation is soliciting donations to expand the grant program.

Eligibility for The South Asian Arts Resiliency Fund

To be eligible, applicants must be of South Asian descent. Also, they must work in the arts and demonstrate loss of income due to COVID-19. Also, applicants must be:

  • at least 21 years old
  • not enrolled in a degree program, and
  • able to receive taxable income in the US

You can put grant funding toward any artistic project you can develop, create, and present within four to six weeks of getting funding. See theindiacenter.us/artsfund.

Demolish your funding problems with 27 killer ways to get cash for your business.

Grants.gov

Grants.gov is a running list of more than 1,000 available federal government grants. The website compiles grants from over two dozen government agencies. These include the SBA, USDA, and the US Department of Commerce. To find a grant right for your business, use the Search Grants tool on the website. You can sort through the list of grants by keyword or opportunity number.

Once you have located the grant you wish to apply for, click the opportunity number for more detail. There, you will find more information about the specific grant as well as any associated documentation you may need. To apply for a grant through Grants.gov, you must first register. Then, you can download an application package for the grant you want to get. Be ready for a lengthy process. See grants.gov.

An Alternative to Grants for Small Black Owned Businesses: Angel Investors

Angel investors are informal investors. Essentially, you are selling a part of your business to them. They tend to not want a huge percentage of your business. Also, they won’t pass by more conventional businesses, like with crowdfunding and venture capital. Hence they can be another supplement or replacement for grants.

An Alternative to Grants for Small Black Owned Businesses: Crowdfunding

If you would rather not rely on grants so much to fund your business, crowdfunding is a viable option. Keep in mind, not everyone with a campaign on a crowdfunding site is successful. More unique products and services tend to do better. Kickstarter and Indiegogo are two of the most popular crowdfunding platforms to use. Some platforms may have higher success rates than others.

An Alternative to Grants for Small Black Owned Businesses: Loans

If grants aren’t an option, loans might work for you.

Business Center for New Americans

If you’re an immigrant, then try the Business Center for New Americans. They offer a pilot program for microloans up to $75,000. They work with immigrants, refugees, women, and other minority entrepreneurs. The goal is to help minority business owners who have not been able to get traditional financing. Terms are 3% interest. Loan repayment term goes up to a year. See accompanycapital.org.

Grants for Small Black Owned Businesses:  Takeaways

There are several options for grants for black owned businesses. Black entrepreneurs should apply for whichever grants they feel they are most likely to get. Other options for funding include crowdfunding, angel investors, and loans. Credit Suite can help you get the funding you need.

The post Get Grants for Small Black Owned Businesses appeared first on Credit Suite.

Get Grants for Small Black Owned Businesses

Check out Business Grants for Small Black Owned Businesses and So Much More Are you one of the millions of black business owners in the US? Or are you starting a business? Money is always going to be an issue. What if you could get what is essentially free money? That’s what grants are (for … Continue reading Get Grants for Small Black Owned Businesses

PocketSuite Is hiring Lead Engineers, Product Designers to enrich small business

Article URL: https://www.ycombinator.com/companies/pocketsuite

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Grants for Small Black Owned Businesses

Check out Business Grants for Small Black Owned Businesses and So Much More

Are you one of the millions of black business owners in the US? Or are you starting a business? Money is always going to be an issue. What if you could get what is essentially free money? That’s what grants are (for the most part). Yes, you can get grants for small black owned businesses.

Looking for Grants for Small Black Owned Businesses – and Other Options

How do you find the best options for you?  How do you know if you need to be looking for grants or business loans? We recommend that you explore every option. This is because it will probably take a combination of funding options to fully fund your business.

Funding and Grants for Small Black Owned Businesses

There are grants for black business owners, but not necessarily for them exclusively. Still, there are other funding choices out there. Loans, crowdfunding, also angel investors are all viable options. More on those later.

Business Grants for Small Black Owned Businesses

The government and private organizations want to GIVE you money! Though highly competitive and rarely enough to fund a business on their own, grants are a great way to supplement other business funding. And they are still worth the effort to apply. There really isn’t anything to lose except time – it’s free money. Here are a few you can start with.

The Minority Business Development Agency

The Minority Business Development Agency (MBDA) is operated by the US Department of Commerce. It is dedicated to helping minority-owned businesses access the resources they need to grow and succeed. The MBDA is for both men and women. Grant competitions are regularly changing.

Visit the MBDA’s website for information on all current opportunities. Currently, the MBDA helps its members apply for grants via Grants.gov. This also involves help with how to apply for government grants. See mbda.gov/grants.

Enterprising Women of Color Initiative

The MBDA also oversees the Enterprising Women of Color (EWOC) Initiative. The initiative works to focus on the fast-expanding minority women entrepreneur population as a revenue generators for families, communities, and the nation. Minority women are the fastest growing population of entrepreneurs. While many women are making tremendous strides in the business world, they still face obstacles as entrepreneurs.

MBDA serves as an advocate for women’s economic empowerment, by supporting efforts to advance women’s equality and promote women economic advancement programming. The vision of EWOC is to ensure women worldwide to reach their economic potential. See mbda.gov.

The Verizon Small Business Recovery Fund

The Verizon Small Business Recovery Fund is new. It was established in response to the COVID-19 pandemic. The fund offers $10,000 to successful applicants. The fund is specifically focused on providing grants to business owners of color, women-owned businesses, and other underrepresented entrepreneurs. See lisc.org/covid-19/small-business-assistance/small-business-relief-grants/verizon-small-business-recovery-fund

National Black MBA Association Scale-Up Pitch Challenge

Also known as NBMBAA, the Scale-Up Pitch Challenge has cash prizes ranging from $1,000 to $50,000. The association states its purpose is to help newer businesses that have an African American ownership. This is a pitch competition for startup businesses. See nbmbaa.org/scale-up-pitch-challenge.

Demolish your funding problems with 27 killer ways to get cash for your business.

Amber Grant

Black businesswomen have even more options open to them. The Amber Grant awards one prize of $10,000 per month to a woman-owned business. One of the recipients also receives an additional $25,000 grant at the end of the year. Applicants only need to tell their story and turn it in with a $15 application fee. See ambergrantsforwomen.com/get-an-amber-grant/apply-now

Cartier Women’s Initiative Award

Black businesswomen can also try for a Cartier award. This award is for women and there’s no specification that a woman be a member of a minority group. The Cartier Women’s Initiative Award has a regional category award and a science and technology award. The regional award is $100,000 for first place, with $30,000 for second and third place.

The award goes to three women from each of seven international regions. This award is a grant to 21 female business owners from around the world each year. Women business owners who are just getting started may qualify. Look over the complete application for more information. See cartierwomensinitiative.com/about-us

Cartier Science and Technology Pioneer Award and Fellowship

The Cartier Science and Technology Pioneer award is new as of 2021. With this award, three more women impact entrepreneurs at the forefront of scientific and technological innovation will be recognized for a new thematic award. Open to women entrepreneurs from any country and sector, this award will highlight disruptive solutions built around unique, protected, or hard-to-reproduce technological or scientific advances.

The laureate will be awarded a $100,000 grant. Each of the two remaining finalists will receive a $30,000 grant.

Cartier also offers a fellowship program. The fellowship is an educational program geared towards the 24 fellows selected each year. This program aims to equip the fellows with the necessary skills to grow their business. Also, it helps them to build their leadership capacity by drawing upon the experience and expertise of an array of academics, practitioners, industry experts, and entrepreneurs.

The fellowship isn’t exactly a grant. But while it’s not a monetary award, the mentoring and networking opportunities could be worthwhile to apply for. See cartierwomensinitiative.com/fellowship-programme.

Demolish your funding problems with 27 killer ways to get cash for your business.

The Native American Business Development Institute (NABDI) Grant

Are you also part Native American? Then check out this grant.

The NABDI Grant is funded by the US Department of the Interior’s Bureau of Indian Affairs. It provides funding to business owners of Native American or Alaskan Native descent. In 2019, the program provided more than $727,000 to 21 indigenous tribes, to support economic feasibility studies for specific economic development projects or business startups.

For 2020, NABDI planned to award 20-25 grants. There is no minimum or maximum amount of funding that can be requested, but most awards range in value from $25,000 to $75,000. They only fund projects for one year at a time, which is when they expect projects to be completed. To apply for a NABDI grant for your proposed economic development feasibility study, go to bia.gov/service/grants/tedc/apply-nabdi-grant.

Indian Affairs

For black business owners who also have Native American heritage, it doesn’t stop there. There is more available via the Bureau of Indian Affairs. Businesses owned by Native Americans can get financing from the federal government through the Indian Affairs branch. An individual can fill out an application for up to $500,000, but business entities and tribal enterprises may apply for more.

Potential borrowers can apply with any lending institution, they just have to use the application for Indian Affairs. There are additional requirements if you use the funds for construction, renovation, or refinancing. In general, you must supply a list of collateral, a credit report, and an analysis of business operations. See bia.gov/as-ia/ieed/loan-guaranty-insurance-and-interest-subsidy-program.

The South Asian Arts Resiliency Fund

If your business is in the arts, and you’re also of South Asian descent, then check out this fund. The fund is run by the India Center Foundation. It supports US-based South Asian arts workers impacted by the COVID-19 pandemic.

The fund will disburse grants up to $2,000, depending on financial need to US-based arts workers of South Asian descent. This includes those in the performing arts, film, visual arts, and literature with heritage from Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka. Initial funding for the program is $20,000, but the India Center Foundation is soliciting donations to expand the grant program.

Eligibility for The South Asian Arts Resiliency Fund

To be eligible, applicants must be of South Asian descent. Also, they must work in the arts and demonstrate loss of income due to COVID-19. Also, applicants must be at least 21 years old. And they cannot be enrolled in a degree program. Also, they have to be able to receive taxable income in the US.

You can put grant funding toward any artistic project you can develop, create, and present within four to six weeks of getting funding. See theindiacenter.us/artsfund.

Demolish your funding problems with 27 killer ways to get cash for your business.

Grants.gov

Grants.gov is a running list of more than 1,000 available federal government grants. The website compiles grants from over two dozen government agencies. These include the SBA, USDA, and the US Department of Commerce. To find a grant right for your business, use the Search Grants tool on the website. You can sort through the list of grants by keyword or opportunity number.

Once you have located the grant you wish to apply for, click the opportunity number for more detail. There, you will find more information about the specific grant as well as any associated documentation you may need. To apply for a grant through Grants.gov, you must first register. Then, you can download an application package for the grant you want to get. But also be ready for a lengthy process. See grants.gov.

An Alternative to Grants for Small Black Owned Businesses: Angel Investors

Angel investors are informal investors. Essentially, you are selling a part of your business to them. Also, they tend to not want a huge percentage of your business. Also, they won’t pass by more conventional businesses, like with crowdfunding and venture capital. Hence they can be another supplement or replacement for grants.

An Alternative to Grants for Small Black Owned Businesses: Crowdfunding

If you would rather not rely on grants so much to fund your business, crowdfunding is a viable option. Also keep in mind, not everyone with a campaign on a crowdfunding site is successful. More unique products and services tend to do better. Kickstarter and Indiegogo are two of the most popular crowdfunding platforms to use. Some platforms may have higher success rates than others.

An Alternative to Grants for Small Black Owned Businesses: Loans

If grants aren’t an option, loans might work for you.

Business Center for New Americans

If you’re also an immigrant, try the Business Center for New Americans. They offer a pilot program for microloans up to $75,000. They work with immigrants, refugees, women, and also other minority entrepreneurs. The goal is to help minority business owners who have not been able to get traditional financing. Also, terms are 3% interest. Loan repayment term goes up to a year. See accompanycapital.org.

Grants for Small Black Owned Businesses:  Takeaways

There are several options for grants for black owned businesses. Black entrepreneurs should apply for whichever grants they feel they are most likely to get. Other options for funding include crowdfunding, angel investors, and loans. Credit Suite can help you get the funding you need.

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