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By Milt Wright and Anita Lee Wright
Milt Wright & Associates

Resources Needed to Start Your Own Business Cont.

Get Financing for Your Business

If you need financing, realize that you are asking someone to invest in your vision. Family members and equity should be the first priority in obtaining funding. Borrowing money from your personal network is much easier than applying for any loans. Fortunately, there are many alternatives to financing your business. The loans with the greatest flexibility will be Microloans from community-based organizations that loan smaller amounts, $500.00 to $50,000. However, if you want to apply for any of the government sponsored loans you will need to have a business plan. For any consideration of a business loan, you need to create a business plan that will provide information supporting how the profitability of your business will exceed the risks of investment.

The Microloan Program will provide financing to existing businesses and home-based companies. To qualify, the business must: create or save jobs in either Los Angeles or Ventura County. and demonstrate an ability to repay through existing cash flow, reasonable credit and/or collateral. Eligible use of proceeds includes: storefront facade improvement, machinery and equipment, working capital, inventory, relocation and business acquisition. Most applications of small micro loans require you to go through an extensive entrepreneurial training program. These classes usually are one night a week (3 ½ hours) for 8 weeks. Economic Development Centers usually offer these classes. To apply for one of these loans through the Valley Economic Development Center the online application is located at https://application.microloan.org/

You can also contact the VEDC for more information.
www.vedc.org/

Options for Microloans:

A Microloan Peer-Lending Program
This program works when a group is formed, trained, and becomes it’s own loan committee offering loans from $500 – $5,000 for new entrepreneurs who have a clear and well-developed idea for a business but lack collateral, as well as existing entrepreneurs who lack adequate credit history or have limited access to working capital.

Seed Loan Program
This provides $5,000 to $30,000 loans for struggling businesses and small businesses that have been in operation for a minimum of one year.

Renaissance Microloan Program
This program offers an alternative source of funding from $2,000 – $20,000 for small businesses who cannot qualify for conventional bank financing. The Entrepreneurial Training Program is required for new and existing businesses in service for less than 2 years.

The Build WorkSource web site provides material on topics of interest to businesses. It is not intended as legal advice or to answer specific legal or employment problems. The information presented in the Build WorkSource web site is from many sources therefore there can be no warranty or responsibility as to the accuracy, originality or completeness. Build WorkSource is not engaged in rendering legal or other professional counsel.

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