Alternative Funding

Funding is the most important component for a business. Without funding there is no way a business can function with its daily operations or for that matter even thrive.

Finding funding is may be difficult for those of you that may not have a rich relative, and I must say I do not have a rich relative so I too would need to find funding when starting my small business. There are all types of funding, such as loans, investors, grants and etc.

There is also many alternative funding such as the EDA (U.S. Economic Development Administration). The EDA is a federal program that promotes growth in all American regions.  They also help establish job growth regionally throughout the United States. By offering a grant process there are a few guidelines that have to be determined to make sure that your business will fit the goal that they are trying to accomplish.

There are six guidelines that the EDA goes by to make sure your business is right for their grants:

1. Collaborative Regional Innovation
Initiatives that support the development and growth of innovation clusters based on existing regional competitive strengths. Initiatives must engage stakeholders; facilitate collaboration among urban, suburban, and rural (including tribal) areas; provide stability for economic development through long-term intergovernmental and public/private collaboration; and support the growth of existing and emerging industries.


2. Public/Private Partnerships
Investments that use both public- and private-sector resources and leverage complementary investments by other government/public entities and/or nonprofits.


3. National Strategic Priorities
Initiatives that encourage job growth and business expansion related to advanced manufacturing; information technology (e.g., broadband, smart grid) infrastructure; communities severely impacted by automotive industry restructuring; urban waters; natural disaster mitigation and resiliency; access to capital for small, medium-sized, and ethnically diverse enterprises; and innovations in science and health care.


4. Global Competitiveness
Initiatives that support high-growth businesses and innovation-based entrepreneurs to expand and compete in global markets, especially investments that expand U.S. exports, encourage foreign direct investment, and promote the repatriation of jobs back to the U.S.


5. Environmentally-Sustainable Development
Investments that promote job creation and economic prosperity through projects that enhance environmental quality and develop and implement green products, processes, places, and buildings as part of the green economy. This includes support for energy-efficient green technologies.

6. Economically Distressed and Underserved Communities
Investments that strengthen diverse communities that have suffered disproportionate economic job losses and/or are rebuilding to become more competitive in the global economy.

(http://www.eda.gov/investmentPriorities.htm)

If you would like to see more information about the EDA and see if they may be able to help fund your business visit them at EDA.gov