Step Six Obtain Financing For Your Small Business
10 Steps to Starting A Business
Some businesses may not need financing. The investment of the owners may suffice. There are entities and programs that are devoted to helping small businesses. Everyone has heard of the Small Business Administration. The SBA does not make loans directly to small businesses but does help to educate and prepare the business owner to apply for a loan through a financial institution or bank. The SBA then acts as a guarantor on the bank loan. In some circumstances it also helps to procure loans to victims of natural disasters, works to get government procurement contracts for small businesses, and assists businesses with management, technical and training issues.
The California Capital Access Program encourages banks and other financial institutions to make loans to small businesses that fall just outside of most banks conventional underwriting standards. They can be reached at (916) 654-5610 or http://www.treasurer.ca.gov/cpcfa . The California Guarantee Program allows a business to obtain a loan it could not otherwise obtain and to establish a favorable credit history with the lender. http://www.calbusiness.ca.gov/cedpgybfasblgp.asp
The community financial resource center provides capital for expanding businesses through their Small Business Expansion Loan Program and provides to struggling businesses that have been in operation for a minimum of two years through their Seed Micro Loan Program. You can reach them at (323) 233-1900 or http://www.cfrc.net . The Los Angeles Business Assistance Program offers loans from $5,000.00 to 250,000.00. See the Los Angeles Business Assistance Program website http://www.ci.la.ca.us/cdd/bus_labap.html or call (213) 744-7111 for information.