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September 16, 2020

SBA Disaster Loan, EIDL, SBA Disaster Assistance Texas

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SBA disaster loan by Money Man 4 Business in Houston, get eidl relief assistance to apply with reconsideration application for SBA emergency loans for your small business effected by disaster.

Due to the outbreak of many hazardous situations like earthquakes, flood, pandemic or more such like, the small businesses are seeking financial help, and their best hope is the loan from SBA disaster loans. The low-interest long-term SBA disaster loan is a viable option for small businesses suffering from the economic downturn or the business that wishes to grow but cannot secure loans from non-government finances.

SBA emergency loans are working capital loans available to small businesses and most private non-profit organizations. Currently, all small businesses in all U.S. states and territories are currently eligible for small loans with low interest due to the pandemic.

However, to do so, the governor of the state has to declare that the state is an economic emergency and also the country where the business is headquartered declares economic emergency so that the business is entitled to apply for the loan. While most of the businesses are eligible to apply for the SBA disaster assistance, some businesses like the marijuana shops, casinos, racetrack, etc. are not eligible for such loans.

In the month of March’20, the U.S. Federal Reserve signed the Corona Virus Aid Relief and Economic Security (CARES) act, which is a big corona virus relief bill, the sole purpose of which is to support the small business during this uncertain time due to the pandemic. One of the actions in the bill is the Paycheck protection program. 

The program has been originated from the CARES act, which was initially set up to provide SBA disaster assistance to American small businesses with eight weeks of cash-flow. In this program, small businesses are eligible, with the loan having a maturity rate of two years at an interest of one percent. There is no security or personal guarantee required against the loan; also, a loan can be forgiven and basically turn into a non-taxable grant.

These program loans are more extensive than the SBA disaster loan assistance; even small businesses having sole proprietorship, self-employed individual, and freelance workers are eligible for the loans through this program. But there are conditions; at least sixty percent of the loan needs to be used for payroll and employee benefits.

The balance forty percent needs to be used to mortgage interest, rent, lease, and utility payment. The loan is not directly paid by the SBA, but they back the lenders. The purpose of the program is to protect the paychecks of the employee.

How to get SBA disaster loan assistance?

In recent years, the USA’s small business has suffered a number of major disasters like wildfire, earthquakes, hurricanes, flooding, and droughts. But the major crisis has been the Covid 19 pandemic. As a small business or a startup, if you seek relief, your business might be eligible for the SBA disaster loans in Texas. They will provide you a low-cost business loan that will help you rebuild your business keep you in operation.

The SBA disaster loan has a low fixed interest rate and generally carries fixed, low monthly repayment. It has a fixed interest rate for the entire loan life, and the formula is set as per the law, and it may depend upon the type of disaster and the market condition. For instance, the interest rate due to the pandemic Covid 19 for-profit business is fixed at 3.75%, and for non-profit business, it is fixed at 2.75%.

For small business disaster loans, both physical and economic disaster loans are available in the disaster area. To avail of this loan, the business must be a small business which is located within the declared disaster area. A business that is owned independently and doesn’t dominate its operation is deemed a small business. But the business which racks their one-third revenue through legal gambling activities like casinos and racetracks is not considered eligible for such loans.

The SBA disaster loan assistance can be used to replace or repair the damaged property owned by the business, which might include the real estate, supplies, machinery, inventories, etc. They can also be used as the capital that is designed to meet the financial obligation for the business.

August 29, 2020

Unsecured Personal Loans Bad Credit, Unsecured Personal Loan Texas, Houston

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Available Unsecured business loans program for bad credit personal loans by Money Man 4 Business in Houston. USA.

In brief, unsecured business loans can be defined as commercial loans that are designed for businesses that don’t need any collateral for the loan. These loans are attractive for businesses and don’t have much to offer in the way of collateral, even if the interest rate is high than secured business loans to make-up for the rising risk that the lenders take on without collateral.

Unsecured business loans are small business loans that doesn’t need borrows to offer collateral. With unsecured business loans, borrowers avoid the risk of placing valuable assets on the line of financing, but lenders makeup for the rising risk by charging high interest rate that needs filing liens or personal guarantees.

Many small business owners don’t have enough asset to put down as collateral or do hesitate to take risk of putting down collateral. This is the reasons that alternative lenders and banks do offer unsecured business financing. In this page, you will come across some detailed information on unsecured business loans, the benefits and risk they come with, and the best unsecured business loans on the market.

Moneyman4business provides unsecured business loans bad credit for small and medium business owners across India. These loans are easily sanctioned without any hassles and don’t get stuck during loan processing. Our loans are instantly processed after you apply for business loan online. The application process is simple to avoid confusions in order or grant loans without unnecessary delays. Our Unsecured Business Loan is a financing instrument to cater the needs of growing businesses.

Our strong digital interface makes the processing of best unsecured business loan, and provides a smooth and hassle-free business loan for business owners.

You get an opportunity to avail business loan for the expansion and growth of your business. You can get an unsecured business loan during any stage of your business.

How to Get a Small Business Loan Unsecured by Collateral

In case you have identified that you don’t have collateral to offer for a secured business loans, then you should gear your research in seeking small business loan unsecured by formal collateral.

In that case, you will find something here below as you seek for best unsecured business loans.

  1. Do Your Research

Prior to signing up for just any unsecured business loans, you must do your search and shop for options. Find the financing options with the best terms and low costs for your unsecured small business startup loans.

Further, you must ensure to read up on any potential lender you might work with reading customers reviews to save you from signing any contracts with a disreputable lender.

  1. Check Your Credit Scores

Your ability to score an unsecured business loan directly depends on where your business credit score and personal credit score stands. The more pristine your credit history, both as a business or individual gets, the better your odds to get a low cost best unsecured business loans.

Since a lack of collateral will make the lending to your business through an unsecured business loan that much risky, they’ll want to check whether you have a trustworthy or solid track record as a borrower.

  1. Prepare Your Unsecured Business Loan Application

The more you have to show to prove your reliability as a borrower and your ability to payback, the better it is. So, to raise your chance to find a great unsecured business loan, offer as much documentation and financial info on business application. This will include business tax returns, business bank statement, credit scores and more.

  1. Read the Fine Print on Your Unsecured Business Loan Offer

After you get an unsecured business loan offer, ensure to read the detail on the agreement. While you don’t have to offer collateral, you’d be placing your asset at risk in other ways like blanket lien or personal guarantee. Ensure that you know exactly what you are getting into and pour over even the smallest print in your loan agreement prior to opting for it.

Unsecured Business Loans: The Pros and Cons

Unsecured Business Loan Advantages

To be sure, unsecured business loans are highly sought after for a reason. Here, you’ll find some benefits to select unsecured business loans as your funding solution.

#Easy and Fast Funding

Applications on unsecured business loans usually aren’t as involved and lengthy as other kinds of business loans. Some of the lenders offering unsecured business loans require info to get the funds into your account.

This make the financing a good option for borrower who cannot wait for loan that needs a long vetting and application process such as the SBA loans and medium term loans.

#No Risk to Your Assets

One of the most noteworthy and obvious of funding your business with an unsecured loan is that these loans don’t risk for business asset or personal assets.

With secured business loans, you are securing the loan with valuable piece of collateral like your savings account, business property, home and more. However, if you default on an unsecured business loan, you won’t risk losing a particular piece of property you place as collateral.

Now, it is crucial to note that many unsecured business lenders need liens or personal guarantees that leave you on the hook for the funds you owe.

#Larger Loan Amounts is Possible

Sometimes, you will get large loans with an unsecured business loans than you’d with a secured one. The reason is that with secured business loans, you can borrow only up to the value of the collateral to offer on financing.

You will be backed with automatically limits to borrow as unsecured business loans have no collateral to back them. This will let one to borrow more funds that offering the collateral. So, with unsecured loans, the amount of funding will depend in large part on your credit profile.

Unsecured Business Loan Disadvantages

There are certain downsides to take on unsecured business loans. Some of the demerits to unsecured business loans are:

#Higher Interest Rates

One of the biggest downsides to unsecured business loam is that they come with high interest rates as without collateral securing the loan, it is risky for lenders to take on.

This is why lenders will charge high interest rate and be sure to get most of the money back through interest.

#Personal Guarantees and Liens Still Apply

Liens and personal guarantees can still apply on unsecured business loans and protect themselves while lending to borrowers. When you personally guarantee a loan, you commit to being personally liable for funds not repaid to the lenders by your business. A lien will put business asset at risk if you cannot payback the loan.

#Harder to Qualify

Securing a business loan with collateral renders some reassurance that the lender will get their money back. This means that the business revenue, time in business and credit history will be less important to lenders.

Otherwise, if there’s nothing particular promising the lender to get the money, they will dig deeper into your credit history. Here, your credit score is crucial to show how reliable you are with paying back what you owe. In case you have a poor credit score and have no collateral to offer, lenders won’t work with you any longer.

#Shorter Repayment Periods

Unsecured business loans come with short repayment periods than the secured counterpart. That is because lending money for long term unsecured business loans is risky for lenders than lending for a short time. The future state of market is more uncertain as you get farther into the future. So, lenders are more protected if their money is out of their hands for a short time period.

Further, when risk is concerned, unsecured business loans are riskier so they come with short repayment periods.

Types of Unsecured Business Funding

Business Credit Cards

Small business credit cards are crucially for unsecured loans. Now, authorized parties and business owners can borrow money from credit card companies and repay at a later date without having to secure the credit with collateral.

Business Term Loans

These loans of a particular amount agree by the borrower and lender. They come with particular repayment schedules mostly paid our weekly, monthly, or bi-monthly.

Business Loan with Personal Guarantee

These are like general business loans, and the difference here is that business owners is the responsible party. So, while the business is the borrower, the individual is responsible for paying the loan instead of business.

Business Line of Credit

This is the most flexible type of unsecured business loan you can get by. After been approved for some money, you can borrow what you need and repay over a monthly or weekly repayment schedule. As you repay, the amount you can borrow becomes available again.

Unsecured Business Funding: Crucial Elements to Think

The risk of defaulting on a business loan is very real for business owners, mostly those who fail to qualify for financing from a conventional bank. Acknowledging this risk doesn’t mean to scare the entrepreneurs away from pursuing debt financing. However, it is crucial to think about the key elements involve prior to singing for a new business loan.

Unsecured business loans save you the issue of having to offer a particular asset as collateral in exchange for a business loan. But, you can still be on the hook when the business fails. Lenders do use alternatives like blanket liens and personal guarantee to shore up their interest. So one should ensure the fine print on any unsecured business loan and have a clear cut plan for paying it.

The Bottom Line

Any business can compete is it is provided by right financing needs best unsecured personal loans that can be accessed at the right time. Determine the need for a business loan before actually proceeding for it. You should ha e clear idea about how to use the funds and manage the money flow in your business.

Once it is clear, you can approach is for the success of your business and growth. We can always support you for unsecured personal loans in Texas businesses and legacy. Kindly take the mentioned steps to apply for a business loan.

Frequently Asked Questions (FAQs)

Q1. Where can I get an unsecured business loan?

Ans. To avail business loans, visit the nearest branch of your bank or you can also apply from its official website and submit the loan application form online.

Q2. What is the interest rate offered under an unsecured business loan?

Ans. The interest rate starts from 14.99% onwards.

Q3. What is the minimum and maximum repayment period of unsecured business loan?

Ans. The repayment period of the unsecured business loan is from 12 month to 5 years.

August 29, 2020

SBA Loans for Startups, Small Business SBA Grant in Texas, Houston

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Money Man 4 Business, SBA loans (government loan program for small business) provider in Houston, apply with proper application if you are looking for SBA loans, sba 7a loan and startups

The agency small business administration (SBA) is an autonomous administration of the US government built to bolster the small businesses and economy by providing them SBA startup loans, which would help the economy grow. Other than that biggest function of SBA is to provide counseling aid to the entrepreneur to grow their startup business.

SBA loans are business loans guaranteed by the Small Business Administration. Through the multiple SBA funding, the govt. agency renders SBA loan guaranteeing up to 80% of the loan amount through SBA approved lenders. The three main programs let the borrower to purpose that includes buying real estate, refinancing debts, buying equipment or inventory, working capital through the guaranteed loans.

SBA loans are small business loans guaranteed by the SBA and issued by participating lenders. This guarantees up to 80% of loans as per the agency lending statistics.

In case you are searching to open a new location, refinance an existing loan, or hire employees, SBA loans serves to be a good option. The SBA loan rates and terms usually are more manageable for borrowers than other kind of financing.

SBA also offers substantial educational information that focuses on providing assistance to small businesses during the pandemic by giving them knowledge about SBA loan coronavirus so that the small businesses can sustain themselves during such tiring times.

If you are seeking how to fund the expansion of your business, you should opt for SBA loan. Even if this is not for every kind of business owners, but these are viable option for those who can’t obtain other financing methods to grow their business.

Most importantly, when a qualifying business applies for this loan, he is applying for a commercial loan, that is structured as per the SBA needs with a guaranty. Now, the small business owners and borrowers who have access to other financing with reasonable terms are not eligible for these loans. But, this is good when the owner didn’t actually qualify for traditional bank loan and has a particular use of funds to help grow his business.

Who Qualifies for an SBA Loan?

Securing a small business administration loan is not an easy task. But when it comes to applying for it, small or newer ones can qualify for it. The most crucial element will be the credit score. SBA loans are for business owners with strong borrowing history.

So, be prepared as these loans need lot documentation, attention, energy and time.

One shouldn’t believe any lender who promises to give SBA loan today. It is definitely not a loan that you can apply and receive within few days. These loans are fit for growing your business and refinancing other debt at the lowest available rate.

You can find it hard to qualify for SBA loan in case your company has a limited track record, or mostly when you have poor credit. Actually, the small business administration and your lender stick their neck out on the belief that you are a reliable borrower.

How Do You Apply for SBA Loans?

There are many local and large banks that offer SBA loan. The bank lenders will have extensive loan application, seeing at the financial detail of your business. At the min, the loan application at a traditional bank will take a couple of weeks to process.

For a quicker and easier process, you can apply online to us and connect to top SBA lenders. Some of the essential documents you’ll require here are:

  • Business debt schedule
  • Business plan
  • Personal tax returns
  • Profit and loss statement
  • Balance sheet
  • Bank statements
  • Voided business check
  • Driver’s license

The perfect place to start is the SBA site that include loan application checklist. You can use the below info to gather the documents, including the business records and tax returns.

Here are certain documents you will require prior to applying.

  • Loan application history
  • Business lease
  • Business license or certificate
  • Business tax returns
  • Personal income tax returns
  • Personal financial statement
  • Statement of personal history
  • SBA’s borrower info form

You can ask the SBA district officer for the name of the approved lenders. The agency also did setup the SBA tools to match the potential borrowers with lenders. Banks follow SBA guidelines but use their own under writing criterion to determine loan applications.

Types of SBA Lenders

The intermittent participant lenders are the bank and non-bank lending institutions that deal in SBA loans texas on a sporadic basis. An intermittent lender will send all the paperwork to SBA regarding any particular loan security situation. The agency will do an independent analysis of the plan and let the lender know whether it will furnish the required security to the lender against the loan.

Then there are certified lenders who participate along with SBA on a regular basis, and they have staff that is prepared and certified by the SBA. In this lender will review the paperwork and decide whether the loan seeker is eligible, but the final world will be of the SBA.

Preferred lenders are also SBA-certified lenders who are at the top of the list based on their performance. For SBA loans for startups, the agency designates their best and reliable lending partners and finalizes loans.

How to Choose the Right SBA Loan Program

There are lot many types of SBA loans out there, with 3 programs being the most popular ones. These are:

  • The SBA 7(a) loan program
  • SBA micro loan program
  • The CDC/504 loan program

How do you know which one is right for you?

The SBA loan program will let you to apply that depend on goal of your business, on age, and on the size.

The most popular program is the SBA 7(a) loan that work best for most business with general financial requirements such as renovating a location, refinancing old debt, expanding working capital. Here are the details of an SBA 7(a) loan.

  • For the purchase of major fixed assets
  • Repayment terms of 10 or 20 years
  • For general business financing requirement
  • Repayment terms of up to 10 years or 25 years

Further, another popular SBA loan program is the SBA micro loan program. The SBA offers micro loans to new and small business seeking for loans. While these loans are small, they are not actually said as shirt term as term lengths get extended over a long time period. Some details regarding the SBA micro loans are:

  • Up to $50K in loan amount
  • Repayment terms up to 6 years
  • For expanding or starting a new or small business

In case you fee unsure about which SBA loan program to opt, you can talk to our experts and get help and options to decide which program is right for you and also know whether you will qualify for it or not.

If you are not there yet, we will work with you to graduate your business up to the SBA loan, for the most cost effective and long term business loan option.

The Types of SBA Loans

#1. All purpose 7(a) loan program

The most popular SBA loan program is the 7(a) loan. This is designed to render funds for a broader list of businesses. It targets small companies and identifies whether a company is small by its number of employees or annual revenues.

The max loan amount available under the 7(a) program is $5 million. This loan is a general purpose loan and the fund is utilized for any business requirements. These include:

  • Refinancing existing obligations of your business
  • Acquiring another company
  • Buying land and a building
  • Funding working capital
  • Starting a new business

Most 7(a) loans are used to buy assets like equipment and real estate because of favorable conditions that let one to repay the loan over the useful life. The long repayment period keeps payment low, meaning more capital to stay in your business.

Now, SBA loan does have some restrictions on how these are used. Funds guaranteed by the SBA cannot be used to fund any investment, or any passive business activities such as buying a building that will be leased to another business. These loans cannot be used to reimburse a business owner for money priory invested, or repay money owned to the govt. like the taxes.

#2. SBA Express Loans

SBA Express loan is another option under the 7(a) program. It renders the lender the flexibility to offer a revolving loan structure for a particular time. What this means you can draw funds for some amount of time paying only interest and treating the fund like line-of-credit, prior to repaying the loan through principal or monthly payment of interest. The max term on this loan is 7 years.

#3. 504 Real Estate and Equipment Loan

In case you require a loan to buy machinery or real estate, a 504 loan could help. This loan works differently from 7(a) loans. Here, the applicant has to give equity contribution as low as 10% of the asset’s buying price.

Most of these loans are structured and will work in tandem with the lender to give 40% of the project funding. Also, a conventional lender like credit union or bank provides at least 50% of the financing. The process here is more complex than other forms of financing as there are two participating lenders to collaborate.

Interest rate for 504 loans is fixed for 20 years which is 10 years for equipment loan and the asset you buy will serve as collateral for the loan. Here the personal guarantee is needed.

The Bottom Line

Prior to applying for any kind of business loan, it is wise to assess your business financial health and requirements. The small business administration suggests you to consider the strength of your industry, and know how to use and repay the loan.

So, it is essential to develop a business plan to answer the questions, review a substantial, and have well though plan prior to approving the loan to expand or launch a business.

A traditional business loan will usually be fast to get and have low fees. Here, SBA loans offer crucial benefits including being able to get a loan at every stage of the business growth.

August 29, 2020

SBA Small Business Grant, Business Grants for Women Texas, Houston

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If you are start up small business owner, women entrepreneur and looking for business grants, Money Man 4 Business in Houston can help you getting your loan grant for you.

Are you thinking to run or start a business? If yes, then nothing sounds better than “free money”. Unlike business loans, here you don’t have to repay small business grants, as such, there’s nothing to worry over refinancing, interest rates or over term length. Rather you only have to apply, quality and boom.

Now, to help you with caveats, you can find here some pre-compiled list of verified startup grants and small business grants for you to check out. This is in a categorized form so that you can figure out which grant is best for you to begin. Get to know more about application process, timelines, eligibility criteria and more for each grant.

How to get Grant for a Small Business loan

A quick Google search will pull up millions of result for business grants. You can find a lot many possibilities that will seem impossible to narrow down the prospects. You can find certain resources that will not only help you find the right grants, rather also assist in application procedures. These will in-turn help you determine grant opportunities that cannot be missed.

Grants.gov

Everybody would want free money from the government. Now, Grant.gov is the federal govt. landing page for the entire federal govt. grants across agencies. This is a great resource to find grant opportunities, however you will find small businesses that are disappointed to find many grants closed to them. This website includes grants for nonprofits, individuals, local governments, school’s system, and so you’ll have to sift through to fine one that is best fit for you.

Nonprofit, private, and Government agencies can also choose to set aside grants for small business grants covid-19 or for any other reason they chose. These agencies set up grants to encourage the development of upcoming minority entrepreneurship in the country or the community. They will also fund the research to develop a specific industry, and others might go after innovation. Whatever might be the reason a business or agency will set up grants by setting upside funds, qualifications, and the required process.

You can receive a business grant particularly a govt. funded one. This is tricky and so get to know some of the needs and general guidelines that the federal govt. uses to identify business grant eligibility.

  • Grants are not given to start a business
  • Grant money is not for business to pay-off debt or cover operational expenses
  • Local and state grants maybe awarded to organization that assists with economic development

Once you are eligible for small business grants Houston tx, the agencies will notify you about the funding along with all the processes regarding the accountability and reporting. Once all the terms are agreed upon by the small business, you will receive the requisite funding.

Small Business Development Centers

After you have done lot many trials for federal govt. business grants, the forward thing to consider here is state and local business grants. Here, you can hit and find some on your own, but you can also be funded by government grants that will help you out.

One crucial aspect where this grants can help is by navigating the grant process. You can get an appointment to make while searching for small business grants.

SCORE.org

This is a nonprofit organization backed by small business administration that promotes mentoring and free tools for small business owners. They serve as free resource for entrepreneurs seeking for expertise having many local experts that you can connect with.

Your Local Librarian

With so many things alongside, local libraries do render for free at lower cost to business owners in finding grants. The librarians are trained researchers and have access to hundreds of databases. As such they can help you in narrowing down the search. As they work in conjunction with local chambers, they know the local pay of the land and will help you find business grants that are particular to your community.

How to Apply for a Small Business Grant

One best way to go through this is by working smart and hard. So, instead of filling out an individual grant application, you can create a resume for your business that outlines your answers to common queries business grant givers. Here, certain applications will vary based on what is needed. For instance, a local govt. grant will need an explanation of how the business growth and development will gain local commerce directly.

If you wish to apply for small business grants first, you need to become familiar with the required process. It is generally time-consuming as it has a detailed process, and there is no guarantee that your business will be selected for the grant. So, understanding the process and what is involved in it will help you decide whether it is worth taking the fund from the said agency.

Enquire and inspect about the number of grants that are available for the small businesses in your area. You will be required to fill up an application with the purpose and the type of industry to which your business belongs. If you are a woman, veteran, or a minority, it will help your chances in securing the fund.

Some common assets you might need to provide while applying for a business grant are:

  • Time in business, number of employees, monthly revenue, how the funds will be used, your business elevator pitch, your employer identification number, your social media handles, a photo, a business plan,

Federal small-business grants for women

There are certain federal govt. grants for small business owners who are designated for particular purpose like the research and development projects for rural and business regions. These grants are used for day to day expenses and other startup costs.

  1. Grants.gov

This is a database of federally sponsored grants that includes grants for small businesses. In order to apply for it, you must have a unique identification number and register to do business with the govt. in website. It will be only then where you can create an account at grants.gov.

  1. Transfer programs for Small Business Innovation Research and Small Business Technology

The small business administration facilitates two competitive programs, that render grants to small businesses to contribute into federal research and development. The federal agencies including the health and human services, defense, department of agriculture, post grant opportunities on their websites. You can search for current grant opportunities on their site. Here, to qualify for it, you should operate a for-profit business with no more than 500 employees and meet other eligibility criteria’s.

  1. The Girlboss Foundation Grant

Here, each grant recipient receives funding that are exclusive to female business owners working in arts, music, fashion and design. The selections are judged by innovation and creativity, demonstration, business acumen and planning of a financial need.

State and local small-business grants

Since federal small business grants are limited in number and even very competitive, you can seek for grants at the municipal and state levels. All you have to do is research and pin point particular grant programs in your regions.

  1. Women’s Business Centers

The small business administration sponsors women nationwide designed to help female entrepreneurs with business development and access to capital. Some lend money directly while other help find small business grants and loans that you may qualify for.

  1. Economic development administration

Many cities and states have economic development resources focused to promote strong local economics. For instance, you can find cities and states having several economic development districts that render financing to local entrepreneurs.

  1. Small Business Development Centers

There are numerous small business administration sponsored centres around the country usually housed at colleges and universities. You can find one on one business consulting that including helping with developing finding financing, researching markets and developing business plans.

Private small-business grants for women

There are certain businesses and private organizations that offer national grant programs for women small business owners.

Best Alternatives to Small Business Grants

Small business grants have one main benefit over business loan as you don’t have to pay back a grant. Here, a loan has to be paid with interest and can be tough on new businesses with flow struggles. Here, qualifying for grant is hard and in case thing doesn’t plan out for you; you can find traditional financing option as the best option.

Grants are one of the unique ways to fund a startup business grants, but that is not the only way; there are other options available to secure funds for the operating capital, which includes business loans, angel investors, selling assets, partners, etc. Another source of funding is crowdfunding which has become popular among the startup business.

 

Given here are some loan options you can seek in case you don’t qualify for grant

Micro loans

Micro loans usually have reasonable interest rates and easy eligibility criteria. Many organizations that render grants like govt. organizations and nonprofits, also provide micro loans. So, if you don’t qualify for a grant, you can ask the organization if they give loan.

Crowd funding

There are a range of crowd funding websites where your business can access funding. Here, you have to create an account, pitch your product/service and wait for people to donate to your organization. In exchange for money, you can render prizes like a free product or coupon. So, if you’re opting for crowd funding, you must ensure to read all the rules as this platform takes a small cut of your capital.

SBA Loans

SBA loans are another alternative in case you don’t qualify for grant, mostly a federal govt. grant. This guarantee small business administration loans and works with banks to get them in hands of small business owners. You can find any local bank and check whether they give sba loans.

Business Credit Cards

Even if you don’t think of business credit cards as a financing option, these are very convenient way to finance start-up costs and other business expenses. Business credit cards usually have high credit limits and other perks and so you must make sure to use them wisely without trying to carry a big balance months after months.