Financing Your Small Business

 

Local

• SBA Microloan
  • Non-Profit community wide loan programs that provide financing to both new and existing small businesses within northern and central New Jersey. Offer business loans up to $35,000 that mature in 5 to 6 years, with an interest rate of up to 10.5% or up to 400 to 600 basis points over prime.
    • Regional Business Assistance Corporation (RBAC) 609-587-8651
• Mercer County Loan Fund: financing from $25,000 to $125,000 for start up or expansion of Mercer County businesses. Rates are 8% or prime plus 2%, whichever is more. Fill out application here.
• Community Development Loan Program: a loan program for commercial real estate development.  Loan amounts $50K-$1.5 million,  Maximum 25 year terms eligible for real estate acquisition, renovation, refinancing. 

• Burlington County: for small businesses with no more than five employees.  Zero/low-interest "micro-enterprise" loans of up to $25,000.
• Carteret, Middlesex County Small Business loans up to $40,000, Small Business Start-Up grants up to $10,000, Small Business Marketing Assistance grants $2500, Facade & Sign Matching Grants Program.
• Intersect Fund: The Intersect Fund is a New Brunswick-based non-profit organization offering a host of services to low-income entrepreneurs in the area. Since getting started in November 2008, we have served over three-dozen clients, training them in the basics of running a business. We also offer long-term support to help entrepreneurs along what can often be a difficult road to a successful enterprise.

State

• NJEDA:
  • BEIP Business Employment Incentive Program to expanding or relocating businesses that create jobs in New Jersey.  Grants may be awarded for up to 10 years and can range between 10% and 80% of the total amount of state income taxes withheld by the company during the calendar year from the new employees hired.
  • Capital Investment Eligible businesses may benefit from up to a 7% grant-the equivalent of sales taxes paid-on qualified capital investments. Awardees may benefit from up to a total of $1 million under the Capital Investment component. Qualified capital investments include expenses of at least $5,000 incurred for the direct use and operation of a business.  This includes costs for site preparation and construction, renovation, improvement, equipping of, or obtaining and installing fixtures and machinery, apparatus or equipment.  Capital investments do not include soft costs such as financing or design, furniture or decorative items such as artwork or plants.  Capital investments also do not include any equipment with a useful life of less than 5 years, as defined by the Internal Revenue Code (IRC). 
  • Job Creation Eligible businesses may benefit from a $3,00 grant per each new full-time job created and maintained in New Jersey. Awardees may benefit from up to a total of $500,000 under the Job Creation component, a company must meet the following criteria: have been operating continuously in New Jersey for at least the prior two years, currently employ at least 5 full-time employees, eligible positions must be covered under the company's group health plan, create an eligible position and maintain a net increase in jobs over a 12-month period , positions benefiting from the Business Employment Incentive Program (BEIP), Business Retention and Relocation Assistance Grant (BRRAG) Program or Urban Transit Hub Tax Credit are not eligible for grants under the program.
• NEW Small Business Loan for Female Veterans (and Female Spouses of Veterans)
• Available assistance for Tech firms

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Federal

 

Small Business Adminstration

• 7(a) Loan Program
• 504 Loan Program: Fixed-Asset Loans
• Quick Guide to Loan Programs: (Page 1 / Page 2)
• National Association for the Self-Employed
• Business Development Grants
• The Catalog of Federal Domestic Assistance (CFDA)

Quick Reference Guide to SBA Loan Programs

Does the SBA offer grants to small businesses?
The SBA does not grant funds for starting or expanding a business, but it does offer a variety of loan programs via intermediaries and participating lenders. Generally, the SBA's grant programs fund non-profits such as educational or intermediary lending organizations to provide technical or financial assistance to small businesses. You can find some information on sources of grants from non-SBA sources on the SBA website at www.sba.gov.

Can you explain the SBA Loan Guaranty Program?
The US SBA's Loan Guaranty Program gives small businesses access to financing by guaranteeing loans by private and non-profit lenders. The SBA is not a direct lender. Three parties are involved in SBA loans: the borrower, the lender and the SBA. The lender determines if the borrower's loan application is acceptable. If it doesn't meet the lender's criteria, the application and credit analysis may be forwarded to the SBA. Once approved by the SBA, the lender approves and closes the loan. The borrower makes loan payments to the lender, not the SBA. Not all banks or non-bank lenders are SBA lenders. For statewide and national listings, go to www.sba.gov and search for the List of Certified and Preferred Lenders.

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Angel/Venture

• New Jersey Entrepreneurial Network
• Angels Capital Association: a nonprofit organization that publishes a directory of investor groups by region.
• Keiretsu Forum: network with 13 regional chapters in the United States and Canada.
• Launchpad Venture Group: Boston-based angels who invest $100,000 to $500,000 in tech-driven startups.
• Robin Hood Ventures: Philadelphia group that charges $250 for submissions.
• EVenturing.org: Must read for pitching angel investors

 

Commercial Lending Programs

• Business Loan Express: 888-211-2911. Loan amounts of $5,000 to $50,000; 7 year term; No collateral required; Easy application process; Fast turn-around time.

• PNC Bank and NJSBDC   "Choice Credit for Business" Program: 800-762-4043. Prime + 0% intro rate for 1 year, unsecured amounts from $2500-$100,000, 1st year annual fee $175 waived, credit decisions one day or less, for new lines only.  7 days a week, 7am-7pm  Jay Munoz 732-448-2903 or Marc Huey 908-454-7524

• ibank.com: Over 35 lenders, faster turnaround. Funded over $81 billion in loans 2007

 

Other Resources

• Springboard Enterprises: National non-profit helping female entrepreneurs who find it hard to secure financing
• Circle Lending: For Raising and managing loans with family and friends.  800-805-2472
• Infusion Funding: For those currently in business. These financing alternatives focus on working capital needs to help businesses grow and to meet short term funding needs.

 

GRANTS

Social Entrepreneurship Grants - Skoll Foundation - social entrepreneurs share a commitment to pioneering innovations that reshape society and benefit humanity.

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Forms

• Balance Sheet: SBA Excel form
• Income Statement: SBA Excel form
• Cash Flow Worksheet: SBA Excel form
• Personal Financial Statement
• One Page Company Fact Sheet