The following information has been provided as a resource for those looking to get financial assistance for their business. Please read through the following sections and then click the links to view other sources of assistance and loan programs that may be available to some businesses:

Before seeking funding for the business it is important to put together a business plan. If you used the guide to planning a business in the first chapter you should use that. Banks require a written business plan for loans, and the Small Business Administration will not guarantee long-term loans without one. This plan would include a detailed outline of the business’ products or services, cash flow plan, marketing strategy, competition and other details.

For information contact:
Small Business Development Center,
(239) 225-4220.
http://cli.fgcu.edu/sbdc
http://www.sba.gov/starting_business/index.html

One key to successful business start-up and expansion is the ability to obtain and secure appropriate financing. Raising capital is the most basic of all business activities. Raising capital is not easy, and it can be a complex process. Despite the late night commercials touting free government money, it is hard to find any government entities handing out cash. Neither the U. S. Small Business Administration nor most other federal and state agencies offer grants or “free money” for starting or developing a business. What grant money is available is primarily for existing businesses to carry out certain specific tasks for government programs.

Consider these sources first:

Personal Savings
Many new small business owners use their personal savings to purchase start-up supplies, inventory, machinery, equipment and/or other assets. Most often, these personal savings will have not been accumulated in advance in order to start a new business immediately. Once the entrepreneurial urge hits, even if you do not know what type of business you hope to start, you should begin to save a portion of your earnings for the business start-up. While credit cards are often used to finance business needs, there may be better options available, even for very small loans.

Trade Credit
You may be able to arrange favorable credit terms with your major suppliers. This arrangement allows the business owner more time on the front end of the cash flow cycle, prior to payment from customers. Your vendors are often willing to extend 30, 60 or 90 days of payment terms as your exclusive industry supplier.

Commercial Banks
Banks rarely offer loans to interested start-up businesses. However, business owners can improve their odds of success by presenting a completed, well-organized loan application package which includes a business plan, and by carefully choosing the right lending institution. Look for a commercial banker who specializes in small business loans. Also, investigate community banks for small loans. Establish a relationship with a banker, preferably before you need a loan. Gather business and personal financial statements, including income tax forms. Make an appointment with the lender. Dress in business attire and be well groomed.

Second Mortgages
If you cannot get serious consideration for a conventional business loan, a home equity loan is an alternative. When the business begins to achieve sales benchmarks and regular cash flow, the loan can be converted to a more competitive rate business loan.

Angel Investors
Angel investors are private investors who are actively seeking to invest in promising companies. The amount of control Angels want varies. Some are very hands on, and others are not.

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Gulf Coast Venture Forum
The Southwest Florida based Gulf Coast Venture Forum is a non-profit corporation formed by a group of business leaders, entrepreneurs, academicians, economic development officials and professionals. The mission of the Gulf Coast Venture Forum is to promote the success of the region’s new and emerging businesses by bringing together the best entrepreneurs, educational programs, equity investors and service providers. An Angel Investors Club is associated with the Venture Forum.

For more information contact (239) 262-6300 or visit them online at www.gcvf.com

Naples Area Lenders
To find a list of local banks that may help you with funding, visit the website of The Greater Naples Chamber of Commerce at www.napleschamber.org and search our member directory for banks in your area. The yellow pages are also a good source for finding a bank. Make sure to have a well written business plan targeted to your audience.

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ACE-Net
An Internet-based securities-listing service. Provides an opportunity for entrepreneurs seeking equity financing in the range typically too low to attract most venture capitalists, $500,000 to $5 million. It enables entrepreneurs to reach accredited investors (called “angels”) with a net worth exceeding $1 million or annual income greater than $200,000. It also allows angels to search for companies from around the country that are listed on the system without giving up their own privacy. Additionally, ACE-Net permits companies listing offering materials on the system to take advantage of several federal and state securities exemptions. These exemptions can significantly reduce the cost of a security offering without adversely affecting critical investor protections.

For information contact (800) 821-7515 or visit them online at www.cob.fsu.edu/jmi/acenet.asp

Florida Export Finance Assistance
The Florida Export Finance Corporation offers information, technical and consulting assistance to small and medium-sized Florida exporters who have been turned down by at least one potential lender. Business must have a specific and verified order from a foreign buyer and the loan must be made to support that order. Financial assistance is available to support pre-export working capital and/or post-export receivable financing. Programs include state supported direct loans and guarantees, as well as, packaging services that provide access to EXIM Bank and SBA export finance and working capital guaranty programs. The maximum guarantee amount is 90% of the loan or $500,000, whichever is lowest. The maximum direct loan amount is 90% of the contract value or $50,000, whichever is the lowest. Guarantees may be used to secure standby letters of credit from financial institutions.

For information contact Florida Export Finance Corporation at (786) 845-0400 or visit them online at www.dos.state.fl.us/fefc

Florida Recycling Loan Program (FRLP)
The Florida Recycling Loan Program, administered by Florida First Capital Finance Corporation (FFCFC) for the Department of Environmental Protection, provides below market financing for companies that manufacture products from recycled materials or convert recyclable materials into materials for use in manufacturing. The program offers funding for the purchase of machinery and equipment at a fixed interest rate as low as 2% below the Prime Lending Rate for the life of the loan (up to 10 years). The potential borrower is required to have an equity injection of 10% of the total amount of the loan. For information contact Florida First Capital Finance Corporation at (239) 949-3178 or visit them online at www.ffcfc.com

Florida Venture Forum
Developed to help Florida entrepreneurs and established businesses seeking moderate to high-risk financing to effectively target their funding search contacts. In addition, a Forum Directory supports Florida deal referral and syndication on a statewide, national and international level. Directory listings include (1) sources of moderate to high-risk debt and equity capital for Florida business ventures, and (2) firms and individuals with significant access to such sources.

For information contact Florida Venture Forum at (813) 335-8116 or visit online at www.flvencap.org

MoneyTree Survey
The Price Waterhouse Coopers/Venture Economics/National Venture Capital Association MoneyTree Survey is the most comprehensive source of venture capital investments. A breakdown of Florida investments is available online at www.pwcmoneytree.com

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SBA 7(a) Loans
A loan program for fixed assets, working capital, inventory, seasonal line of credit, or for compelling reasons, for debt repayment. No minimum loan amount and a maximum of $2,000,000 with a maximum loan guarantee of $1,500,000. Real estate may be financed for up to 25 years, machinery and equipment for up to 10 years, while the maximum term for working capital loans is seven years.

For information contact SBA, (800) 827-5722, or (305) 536-5521 (South Florida office), Florida First Capital Finance Corporation, (239)949-3178 or visit www.ffofc.com; or contact a commercial bank of your choice. www.sba.gov/financing/sbaloan/7a.htm

SBA 504 Loans
A loan-guaranty program for for-profit businesses with less than $7,000,000 net worth, less than $2,500,000 in average annual net income over the prior two years. Money can be used for land, buildings, machinery and equipment. Funds cannot be used for working capital or inventory. Interest rates are determined at funding and are fully fixed for the life of the loan, which is also fully amortized. Down payments can be as little as 10% of total project cost. Repayment is over 20 years for real estate, 10 years for equipment.

For information contact Southwest Florida Regional Development Corporation, (888) 504-7935 or (239) 652-5588, www.srdcorp.org; or Florida First Capital Finance Corporation, (239) 949-3178 or visit www.ffcfc.com

SBA CAPLine Guaranty Program
CAPLines offers five types of loans to finance the short-term, cyclical, working capital needs of small businesses. For most SBA loans there is no legislated limit to the total amount of the loan that may be requested from the lender. However, the maximum amount the SBA can guaranty is generally $1,500,000. However, small asset-based line has a maximum loan of $200,000.

For information contact the SBA at (800) 827-5722, (305) 536-5521 (South Florida office) or a commercial bank of your choice. Visit www.sba.gov/financing/loanprog/caplines.html

SBA Defense Loan and Technical Assistance (DELTA) Program
The DELTA program provides financial and technical assistance to defense-dependent small businesses that have been adversely affected by defense reductions. The goal of the program is to assist these businesses to diversify into the commercial market while remaining part of the defense industrial base. A small business is eligible if it has been detrimentally impacted by the closure (or substantial reduction) of a Department of Defense (DOD) installation, or the termination (or substantial reduction) of a Department of Defense Program on which the small business was a prime contractor, subcontractor, or supplier at any tier.

This program can be used in conjunction with both SBA’s 7(a) and 504 Loan Programs and generally follows the provisions of each program. In order to be eligible for this program, a small business must derive at least 25 percent of its revenues from Department of Defense or defense-related Department of Energy contracts or subcontracts in support of defense prime contracts in any one of five prior operating years.

For information contact the SBA at (800) 827-5722, (305) 536- 5521 (South Florida office), or a commercial bank of your choice. Visit www.sba.gov/financing/loanprog/military.html

SBA Disaster Assistance
The SBA’s Disaster Assistance Loan Program is the primary federally funded disaster assistance loan program for funding long-range recovery for private sector, non-agricultural disaster businesses. Assistance is available to businesses of all sizes and eligibility is based on an individual’s financial criteria. Interest rates fluctuate according to statutory formulas. The program provides disaster loans when a declaration is made by the President or the SBA Administrator.

Visit www.sba.gov/disaster_recov/index.html

Following are two of the business loan programs:

Physical Disaster Business Loans:
Loans are available to businesses of any size foruninsured losses up to $1,500,000 to repair or replace business property to pre-disaster conditions. Loans may be used to replace or repair real estate, equipment, fixtures and inventory and leasehold improvements.

Economic Injury Disaster Loans:
Loans up to $1,500,000 are available for small businesses that sustain economic injury as a direct result of a disaster. These working capital loans are made to businesses, without credit available elsewhere, to help pay ordinary and necessary operating expenses that would have been payable barring the disaster.

SBA Express Loans
A loan-guaranty program for fixed assets (limited), working capital or revolving credit. No minimum loan amount and a maximum of $350,000. The loan maturity is generally 5 to 10 years, but terms up to 25 years are allowed for fixed asset loans. Lenders use their own forms, so contact a commercial bank of your choice.

SBA Export Working Capital Programs
A loan-guaranty program to provide funds for the manufacture or purchase of goods or services for export. SBA guarantees the short-term working capital loans made by participating lenders to exporters. An export loan can be for single or multiple transactions. If the loan is for a single transaction, the maturity should correspond to the length of the transaction cycle with a maximum maturity of 18 months. If the loan is for a revolving line of credit, the maturity is typically 12 months, with annual reassurances allowed two times, for a maximum maturity of three years. The SBA share is limited to 90% up to $1,500,000, while loan requests over this amount may be processed through the Export-Import Bank.

For information contact the SBA at (800) 827-5722, (305) 536-5521 (South Florida office) or contact a commercial bank of your choice. Visit www.sba.gov/financing/loanprog/ewcp.html

SBA International Trade Loans
A loan-guaranty program to finance U.S. based facilities or equipment for producing goods or services for export for up to 25 years. For the fixed asset and permanent working capital portion of the International Trade loan, the Agency can guaranty up to 85% of loans of $150,000 and less, and up to 75% of loans above $150,000 and up to $1,250,000.

For information contact the SBA at (800) 827-5722, (305) 536-5521 (South Florida office) or contact a commercial bank of your choice. Visit www.sba.gov/financing/loanprog/tradeloans.html

SBA LowDoc
A loan-guaranty program that streamlines the making of small-business loans and is limited to loans up to $150,000. Once a small business borrower meets the lender’s requirements for credit, the borrower completes the front of the SBA’s one-page application; the lender completes the back and submits to the SBA. The SBA responds within 36 hours. The maximum SBA guarantee is 85%. The loan maturity is generally 5 to 10 years, but terms up to 25 years are allowed for fixed-assets loans.

For information contact the SBA at (800) 827-5722, (305) 536-5521 (South Florida Office) or contact a commercial bank of your choice. www.sba.gov/financing/lendinvest/lowdoc.html

SBA Surety Bond Guarantee
A bond-guaranty program for contracts up to $2 million, covering bid, performance and payment bonds for small and emerging contractors who cannot obtain surety bonds through the regular commercial channels. Businesses in the construction and service industries can meet SBA’s size eligibility standards if their average annual receipts for the last three fiscal years do not exceed $6 million.

For information contact the SBA at (800) 827-5722 or (305) 536-5521 (South Florida office) or visit them online at www.sba.gov

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Small Business Innovation Research (SBIR) Grants
The SBIR program, is a highly competitive federal program that provides research and development contracts, in part based on the market potential of the research. The competitive SBIR program is the largest source of early-stage research and development funding for small high-tech companies.

To qualify, small businesses must be for-profit, have no more than 500 employees and be working on research and development that will serve both the needs of the federal government as well as commercial markets.

Funding for the SBIR program is divided into three phases: Phase I, companies can receive up to $100,000 for a six-month feasibility study to test the scientific and technical aspects of their concept. If Phase I is successful, companies move on and may be awarded a Phase II contract for as much as $750,000, and take up to two years to further develop the idea. The small business retains the intellectual property rights for the project. Phase III is for the commercialization of the results of Phase II. Private money or non-SBIR government funding must be used for this phase.

For information contact the SBA's Office of Technology at (202) 205-6450 or visit them online at www.sbaonline.sba.gov/sbir

Ten federal agencies, including the Department of Defense and NASA, award grants through the $1.5 billion program. Following are participating federal agency’s that award SBIR grants:

Department of Agriculture: www.csrees.usda.gov/qlinks/small_business.html
Department of Commerce/National Institute of Standards & Technology: patapsco.nist.gov/ts_sbir/
Department of Defense: www.acq.osd.mil/sadbu/sbir
Department of Education: www.ed.gov/programs/sbir/index.html
Department of Energy: sbir.er.doe.gov/sbir/
National Institute for Health: grants.nih.gov/grants/funding/sbir.htm
Department of Transportation: www.volpe.dot.gov/sbir/index.html
Environmental Protection Agency: es.epa.gov/ncer/sbir
National Aeronautics and Space Administration: sbir.gsfc.nasa.gov/SBIR/SBIR.html
National Science Foundation: www.nsf.gov/dir/index.html

Following are websites that offer federal grant program assistance linking to other information sources:

Official Business Link to the US Government: www.business.gov
Catalog of Federal Domestic Assistance: www.cfda.gov
The Electronic Storefront for Federal Grants: www.grants.gov