Small Business Funding for California
Small Business Funding for California
California doesn't have the best reputation when it comes to operating a business. That doesn't mean that small businesses can't find the funding needed. Whether you're looking to start-up a small business, expand your business or just need help financing your business, you have a variety of options open to you. Small business funding in California is possible through the use of existing methods.
A well known method of small business funding for California is a business loan. A small business loan can be acquired through the small business loan guarantee program offered by the California government. This program can typically allow businesses to obtain loans that they typically would not have been eligible for at a traditional bank. There are currently eleven financial development centers (FDCs) in California which you can contact, if interested. Of course, your business must meet the definition of a small business as defined by the U.S. Small Business Administration (SBA).
The SBA also has guarantee loan programs that provide small business funding for California. The SBA 504 Loan is issued mainly for the acquisition of commercial property and/or equipment. The SBA 7(a) loan is a general use loan which can be used for most business related cost (i.e. inventory, working capital, refinancing existing loans, etc.). Loan programs will typically require a lengthy application and approval process.
As a small business owner in California, you may be finding that you can't qualify for loans but still are in need of working capital. Seeking out angel investors is another option available. You will be required to provide an investment proposal and any information that the investors seek. With the right investor behind your business, you'll typically have to give up a percentage of ownership of your company - called "dillution of equity".
However, there are many reasons that your small business may be in need of financial assistance, and loans or outside investments may not be the best option. Thus, small business funding for California can also be provided through the practical use of factoring. Factoring will allow your business to remain operational as you address issues that can be affecting your revenue.
For more information on small business funding for California, please refer to these resources: