Small Business Development Financing

Business is big business these days and everyone seems to be in some kind of business. Whether it be working for an employee or on his own, there are numerous opportunities that people pursue throughout their lives. However, many people who have started their own business struggle financially to keep the business alive. In this article, we’ll explore some of the factors that will determine the success of your home based business and why it’s important to keep up with the current economic condition.


Is your job secure? Are you able to pay all of your bills on time? If you are currently unemployed or underemployed, you may never see the upside of starting your own business. There was a recent report by the BLS showing that forty percent of small businesses are filing bankruptcy in the next eight weeks.

Is capital access a problem? If you are running a small business, capital access will become an even bigger and more expensive issue as the economy continues to recover. Many businesses will have to reduce their overhead and/or seek additional funding in order to stay operational. Unfortunately, many small businesses will fail during this time due to insufficient capital and poor management of the business’ funds.

How does my local or state government to handle my business license? The economic downturn has caused many, if not most, small businesses to cease operation. If you are opening a new business, it is imperative that your business has a license to operate. Unfortunately, many state and local governments have cut their budget for business licensing enforcement agents and most district offices have received little or no funding from the federal government as well. The unfortunate result is that many innocent small businesses have been victims of fraudulent activities by otherwise reputable and honest small businesses.

How do I apply for state or county financial assistance? Unfortunately, most local and state government agencies have eliminated their business programs or will be reducing the number of business grants they distribute. If you are interested in applying for federal financial assistance (food stamps, Medicaid, etc.) you will first need to fill out an application with the Federal Emergency Management Agency. Each year, many state and local agencies review applications to see which are approved for grants and which are not.

Can I get a small business loan or payroll protection program? Unfortunately, most banks and large credit card companies no longer offer loans to small businesses. For most people, a personal loan or a business loan is the only option. Unfortunately, bank overdraft fees and payroll taxes can quickly drain a small business’s working capital.

Will my home qualify for a federal loan program? Unfortunately, the majority of U.S. home grants are not designed to help working capital or to help a business grow. Typically, they are small business development projects, which will only pay off if the homeowner stays in their home long enough to make the loan repayments. Unfortunately, there is no guarantee that your new home will earn enough in rental income to make the mortgage payments every month.

Is there any other way to finance my new business? One way is to tap into your U.S. savings or credit card account. This is no longer a viable option due to the recent downturn in the banking industry. Also, many small business owners are finding that borrowing from friends and family is becoming increasingly difficult. If you have a close friend or relative who is willing to borrow money for a few months, don’t use that as an alternative. You may find yourself in a very serious financial situation when your business is already mature and you have several thousand customers paying you monthly wages.