There are numerous options to choose from when selecting financing for starting a business. The Community Development Venture Capital (CDVC) is a source that provides funds to businesses in underinvested markets. The CDVC has helped over 100 companies with financing over the last decade, and provides its members with funding opportunities that are affordable. I believe the CDVC is an excellent option for a business with not a lot of cash on hand. If someone has a solid business plan that shows solid financial returns the CDVC will help with investments.
Another financing option is the National Community Investment Fund (NCIF). This seems to be a good option for a business owner that is associated with a partnering bank affiliated with the (NCIF). The NCIF invests in banks and credit unions that generate both financial and social returns.
I noticed that to obtain financing from the majority of these private funds the individual must have moderate to low income. I think this makes sense because if a person is in the high-income bracket there is no need for financing. I think one of the big things that investors look for in the business plan is the risk of the investment. There is no such thing is a business with no risk. I feel that if you don’t discuss the risk with the investor they will assume you haven’t thought about the risk and not be willing to loan you money.
Another site that can help with starting your business is SBA.gov. They help business owners to determine their financial needs. The SBA gives small businesses a voice within the federal government. The SBA does not directly loan money to businesses, but they play an important role to make sure you are represented in a way that will aid you in the loan process. I feel this is one of the best options for small business owners specifically because they focus on obtaining loans from the banks for small businesses.
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