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Education

SMB funding – more

options now than ever

By Chad Otar contest that awards 12 businesses with $250,000, and
Lending Valley printing services to the top winner. American Express
offers grants of $5,000 to brick-and-mortar businesses,
usinesses emerging from the pandemic are with 250 awards given over four cycles. It is focused on
finding the ground is shifting financially. Many those impacted by the pandemic.
now need help to pay extra costs of products Fintech
B and staffing without cutting hours or raising
prices. It turns out, there are new ways to fund businesses Financial technology opened a door for many to get loans
that didn't exist a few years ago, including government- or credit lines they couldn't obtain through traditional
initiated loans, grants and fintech funding. means. Stick to well-known names when going this route;
Traditional funding some outfits push high interest or predatory loans.
Traditional funding includes loans from the Small Kabbage is a good option for those who have online
Business Administration and banks. However, many stores through Amazon or eBay. You'll need documented
business owners cannot accommodate the strict criteria financial data, but Kabbage focuses on reputation as
required to access them. You must have a solid credit score, an online seller rather than credit score. A number of
for example. Another option many don't know about is the alternative lenders familiar with merchant businesses
Small Business Lending Fund, a government fund created and known within the payments industry offer loans and
to grow the economy and provide small business loans credit lines, too. They look at revenue for eligibility and
using specific lenders in every state—and with better rates tailor loans and payments to your situation.
and terms. You apply through the U.S. Treasury website,
https://home.treasury.gov. PayPal offers business loans and working capital and
bases lending decisions on how many sales come through
Federal and private grants its site. You must use a PayPal business account to apply
because repayments are made automatically through
Typically, bankers and small business experts say there future PayPal sales.
are no grants for small businesses. But they do exist. One
such program is small business grants, which are specific Other sources
to certain industries. Information is available through the
SBA website, www.sba.gov. Those who feel they won't qualify for any of these options
can turn to crowdfunding to raise money. Indiegogo,
Also given through the SBA, the Small Business Innovation Kickstarter, Causes, Fundable and Patreon are several
Research Program, is designed to help businesses involved of a growing number of options. Peer-to-peer lending
with research and development projects. The process for is another possibility. Prosper has given more than $3
those grants is lengthy with strict oversight. Also under million in loans. Other P2P platforms are LendingClub,
the SBA, the Targeted Economic Injury Disaster Loan Upstart, Peerform and Funding Circle. Venture capital and
Advance is for entrepreneurs who lost revenue during the angel investors are among the more challenging funding
pandemic. It will advance up to $10,000 and doesn't need options to obtain. Funders Club and Gust are a couple of
to be repaid under certain circumstances. websites that offer help. Microloans are small business
loans that help businesses with operational costs and
The National Association for the Self-Employed has doled projects. Accion and Lift Fund specialize in these loans.
out $650,000 since 2006. Those who become members Whatever option you choose, finding the right financing
for $120 a year can apply for up to $4,000. Grants must option isn't as hard as you think as long as you have all
be used for hiring employees, marketing, advertising your business records.
or expanding facilities. Nav, an online marketplace that
matches entrepreneurs with financing choices, awards Note: I used the following in researching this article:
three grants every quarter. The largest amount given is • www.nerdwallet.com/article/small-business/small-
$10,000. The grants are designed to help struggling small business-grants
businesses and the application is easy.
• https://articles.bplans.com/number-ways-fund-small-
business/
Women can apply for the Amber Grant, which awards
$500 initially and can later rise to $2,000. The National Chad Otar is CEO of Lending Valley Inc. For information about the
Institute of Health Funding has money for tech or research company, please visit www.lendingvalley.com. To reach Chad, send an
businesses. FedEx offers a yearly small business grant email to chad@lendingvalley.com.

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