Financing

• Microfinance Loan Program – Short-term loans of up to $50,000 are available to businesses with no more than 25 employees and gross annual revenues of up to $1.5 million through administrators selected by the Florida Department of Economic Opportunity; if selected to receive a loan, the borrower must participate in business training and technical assistance provided by the Florida SBDC Network.
• The Florida Opportunity Fund – Working with lenders and other outside organizations Enterprise Florida helps startup and early-stage small businesses access capital through either a state-run venture capital fund or a fund of funds that invests in other venture capital funds that, in turn, invest in individual businesses. Resources and available talent help determine the vehicle.

If you are black, Hispanic, a female or a U.S. veteran, your business may be eligible for targeted financing.

• Minorities – The Black Business Loan Program provides loans, loan guarantees and/or investments through loan administrators to black business enterprises that cannot otherwise obtain capital through conventional lending institutions. In addition, Black Business Investment Corporations throughout Florida stand ready to facilitate access to capital for black business owners. Hispanic business owners may find funding information pertinent to their needs through Prospera (formerly Hispanic Business Initiative Fund Florida) at www.prosperausa.org.
• Women – No government loan programs exist exclusively for women business owners; however, experience has shown that SBA loans are three to five times more likely to go to women than non-SBA loans.
• Veterans –  The U.S. Department of Veterans Affairs Office of Small & Disadvantaged Business Utilization offers information on small business financing specifically geared to veterans. Click on its Veteran Entrepreneur Portal for easy access to federal services and best practices information about starting, growing and funding a business. In addition, the SBA website has an entire section devoted to business resources for veteran entrepreneurs at veteran-owned-businesses.

Almost no federal grant money is available to launch for-profit small businesses. That said, businesses engaged in scientific R&D may qualify for federal grants under the Small Business Innovation Research (SBIR) and the Small Business Technology Transfer (STTR) programs if their projects meet federal objectives and have high potential for commercialization. Visit SBIR.gov for details. For information about grants available through state and local programs and nonprofit organizations in Florida, visit floridagrantwatch.com.

Venture capital firms or private individuals may be willing to invest in your venture if they see the potential. In return, they’ll expect some level of control and/or a percentage of future profits. Venture capital firms are often controlled by banks, insurance companies, and large corporations. “Angel investors” are usually wealthy individuals looking to support “hot” ideas and untapped investment opportunities.

Bridge Angel Investors is a group of private, qualified investors who reside in the Sarasota-Manatee area funding startups from across Florida. The reason is simple: Florida is one of the most attractive states for both investors and startups. It is the mecca for wealthy retirees with successful careers as executives and investors who want to make a social impact by investing and mentoring young startups. Find out more at www.bridgeangelinvestors.com.

Small businesses starting today can also turn to crowdfunding platforms to raise money in order to offset startup costs. The funds pledged by individuals or other businesses on these platforms usually have few-to-no strings attached, which makes them an attractive place to pitch a business concept. Keep in mind that these platforms are public.