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Financing Your Small Business

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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) 609-587-1133
  - The GNBDC/SBA Microloan Program 973-242-4133
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.
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.

State

NJEDA: the EDA makes grants through the Business Employment Incentive Program (BEIP) 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.

Federal

Small Business Adminstration

7(a) Loan Program
504 Loan Program: Fixed-Asset Loans

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.

National Association for the Self-Employed

Business Development Grants

The Catalog of Federal Domestic Assistance (CFDA)

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.