Secure Your Financing

Now that you are ready for whatever life is going to throw at your business, it’s time to address the biggest challenge facing most business owners: Finding the money needed to get your idea off the ground, nurture it and fuel its growth.

In the early days, your own savings may be enough to get things started. But it is incredibly rare that a business owner doesn’t have to seek out additional resources at some point. Now is the time to start working on those financial relationships.

Your financing options can generally be divided into two broad baskets:

Traditional funding: These sources include self-financing; commercial loans; and public sector opportunities such as SBA loans and FloridaCommerce Office of Small Business Innovation support programs.

Innovative funding: These funds come from venture capital and angel investors; targeted financing opportunities related to race, ethnicity, gender or military service; grants; and crowdfunding.

TRADITIONAL FUNDING

Tap Into Your Own Finances

Take a detailed look into your own assets. How much can you divert to your business without causing financial hardship for you or your family? Can you tap into your savings account? Do you have stocks to cash out? Is it worth exchanging your luxury car for something more modest? You might also consider a low-interest credit card. This can be a risky path, but some small businesses survive a year or two on credit. Read the fine print and be vigilant about making timely payments.

Secure a Commercial Loan

This is where your business plan from Step 1 will come in handy. To get a commercial loan, you will need to demonstrate your ability to repay, based on past business experience, personal credit rating and collateral. These hurdles may be difficult to clear for an aspiring entrepreneur, but a stellar business plan could help seal the deal.

Where to get a commercial loan:

• Commercial banks often have divisions devoted to small business lending and on-line banking options.
• Credit unions offer small business loans and online banking options, often with an emphasis on personal service.
• Commercial finance companies are often willing to take higher risks than banks, but you can expect to pay higher interest rates as a result.
• Digital banking platforms provide many of the same services as commercial banks and credit unions but with a twist — all transactions are digital.

Tap Into Public Sector Programs

Unfortunately, the U.S. Small Business Administration (SBA) doesn’t make direct loans. Instead, the administration works through partnering lenders, community development organizations and micro-lending institutions. The great thing about these loans is that they generally have rates and fees comparable to non-guaranteed loans, while also featuring lower down payments, flexible overhead requirements and, in some cases, no collateral requirements. To get an SBA loan, you will need to demonstrate an ability to pay the money back — as determined by the lending institution.

The Florida SBDC can work with you to help you understand your options. Visit floridasbdc.org/services/consulting/capital-access

There are also some Florida-specific programs facilitated by FloridaCommerce, which tries to match small businesses with lenders. These options include:

• State Small Business Credit Initiative
  The Florida State Small Business Credit Initiative (SSBCI) helps small businesses obtain loan approvals and leverage private capital to help with startup costs, working capital, business procurement, franchise fees, equipment, inventory and/or the purchase of owner-occupied commercial real estate.
• Florida Opportunity Fund
  The Florida Opportunity Fund provides venture capital for startups and early-stage businesses in industries targeted by the state. The support falls into three distinct categories: 1) a clean energy investment program for businesses to increase the use of energy-efficient and/or renewable energy technologies, equipment or materials; 2) a state-run venture capital fund that invests directly in businesses; and 3) a program to invest in seed or early-stage companies in order to realize significant long-term capital appreciation.

INNOVATIVE FUNDING

ATTRACT A PRIVATE INVESTOR

Particularly promising businesses may be able to grab the attention of venture capital firms or private individuals called “angels.” Venture capital firms are typically controlled by banks, insurance companies or large corporations. Angels, on the other hand, are wealthy individuals looking for the next big idea. If they decide to support your business, they will usually expect some level of control and/or a percentage of future profits. See list of Florida venture capital firms or visit Florida Venture Forum.

 

PURSUE A GRANT

There is very little federal grant money available to launch a for-profit business — with a few exceptions. Businesses engaged in scientific R&D may qualify for federal grants under the Small Business Innovation Research (SBIR) and the Small Business Technology Transfer (STTR) programs if projects meet federal objectives and have a high potential for commercialization. For more details, visit SBIR.gov. Grants may also be available through the state of Florida. Visit floridagrantwatch.com for details.

 

FIND TARGETED FINANCING

Your race, ethnicity, gender and/or military service may open doors to targeted funding and educational opportunities.

Are you a person of color?
The Black Business Loan program offers loans, loan guarantees and/or investments through loan administrators to Black business enterprises that cannot obtain capital through conventional lending institutions.

Do you have Hispanic ancestry?
Prospera, is a state-wide, not-for-profit economic development organization devoted to assisting new and seasoned Hispanic entrepreneurs with bilingual services and access to a variety of funding options. For a list of Prospera sites in Florida, visit prosperausa.org/where-we-work.

Are you a female?
Men still represent a larger share of approvals for small business loans across the U.S. But times are changing. In 2025, women owned nearly 40% of U.S. businesses, generating $2.7 trillion in revenue. Consult the list of women’s business centers in our “Ask an expert” guide for helpful contacts.

Are you an active duty or veteran military man or woman?
The SBA offers programs and services aimed at helping you start a business. Offerings include a two-day intensive program entitled Boots to Business to help prepare you for the rigors of business ownership.

 

Take a Shot at Crowdfunding

Appealing to the masses could be the answer if an empty bank account is the only thing keeping you on the sidelines. Before launching a crowdfunding effort, be sure to do your research. The SEC, for example, has specific rules about what you can and cannot do, and you will need to use a platform such as Kickstarter or GoFundMe. If this route interests you, look to the specialists at your local Florida SBDC office for advice.