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The =
College World=20
Reporter
March 2011
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![3D"BizBest](3D"http://ih.constantcontact.com/fs014/1101932153258/img/503.jpg?a=3D=) |
Exclusive=20
College=20
World Reporter Edition=20
By Daniel =
Kehrer
Founder & CEO BizBest =
Media=20
Corp.
|
Where=20
to Find Money to Start Your Business =
By Daniel=20
Kehrer, MBA Candidate
Founder=20
& CEO
BizBest =
Media=20
=
Corp.
![3D"Daniel](3D"http://ih.constantcontact.com/fs014/1101932153258/img/504.jpg?a=3D=) |
Daniel=20
Kehrer
Need=20
money to start a business? Join the=20
crowd. Young American's - =
including=20
tens of thousands still in school or recently =
graduated=20
- are starting businesses at a record pace. Or =
maybe=20
you're seeking a grant to get your dream =
creative=20
project off the ground, and leverage it into a =
business=20
later. Well, here's some good news: Despite =
what=20
you might have heard, small loans of $500 to =
$50,000 are=20
available through several private, online, =
nonprofit and=20
government-sponsored sources. And at least =
three=20
exciting new online funding platforms are now =
helping=20
creative entrepreneurs line up money for all =
kinds of=20
arts-related endeavors.
In=20
short, the odds of finding funding are probably =
better=20
than ever for young entrepreneurs. Here's where =
to=20
look:
Person-to-Person=20
(P2P) lending: =20
This is also called peer-to-peer lending and =
thanks to=20
some fast-growing websites, it's a booming =
alternative=20
to traditional loan sources. Several P2P =
lending=20
websites have grown rapidly, connecting people =
who have=20
money with people who need it, while helping =
structure=20
and manage loans between them. The average =
loan=20
made through a P2P site is about =
$5,000.
The=20
best P2P lending sites right now are =
Prosper.com,=20
Lending =
Club=20
and RaiseCapital.com.=20
Individual lenders (investors) compete with each =
to make=20
loans to borrowers who have posted a loan =
request on the=20
site. The better your proposal, the lower =
you rate=20
is likely to be. Because P2P lending sites =
have to=20
meet
state=20
government lending rules (as well as federal SEC =
requirements), they aren't operating in all 50 =
states.=20
Check their web sites for a list of areas they=20
operate.
ACCION USA is=20
a private non-profit organization that offers =
startup=20
and expansion microloans of up to $50,000 to =
small=20
business owners in the U.S., along with credit =
and=20
business advice to small business owners who =
cannot=20
access traditional credit. This =
organization=20
offers loans for startups as well as established =
businesses, and specializes in working with =
qualified=20
individuals who don't meet customary bank =
lending=20
criteria. You'll find an application and other =
helpful=20
resources on the web site.
Count=20
Me In,=20
a non-profit organization, makes microloans to =
women=20
entrepreneurs through its Micro to Millions =
Award=20
program. For details, visit their website at=20
http://www.makemineamillion.org/.
Crowd=20
funding for creative projects: Kickstarter =
has=20
quickly become the largest online funding =
platform for=20
creative projects. Every month, thousands of =
people=20
pledge millions of dollars to creative projects =
in the=20
fields of music, film, art, technology, design, =
food,=20
publishing and others. It's a new form of =
commerce=20
and patronage that's not about investment or =
lending.=20
Project creators keep 100% ownership and control =
over=20
their work. In return for money, they =
offer=20
products and experiences that are unique to each =
project. Funding on Kickstarter is=20
all-or-nothing. A project must reach its=20
self-chosen funding goal before time runs out or =
no=20
money changes hands. That way, creators =
aren't=20
expected to develop their project without =
necessary=20
funds, and it lets you test concepts risk free. =
Two=20
other sites doing similar things are =
RocketHub.com=20
and IndieGoGo.com.
Community Development Financial=20
Institutions: =20
About 1,000 CDFIs nationwide make microloans for =
business startups mainly in lower-income =
communities,=20
serving both rural and urban areas. Use =
the handy=20
CDFI State=20
Locator=20
to find one near your campus. Here are a few =
CDFI=20
funding examples:
=20
The=20
Utah Microenterprise Loan Fund, a certified =
CDFI, is=20
making loans of up to $25,000. Their motto is=20
"Building brighter futures through small =
business." A=20
$10,000 micro enterprise loan from the Utah =
fund=20
helped Somer Gardiner get her Salt Lake City =
yarn=20
store, Soul Spun Yarn, off the =
ground.
=20
Enterprise=20
Corporation of the Delta, a CDFI in Jackson, =
MS, has=20
helped train or fund thousands of =
entrepreneurs in the=20
Mississippi Delta region it serves. It helped =
back=20
Computers, Inc., a small business owned by =
three=20
women. Computers, Inc. installs custom =
equipment for=20
schools and businesses.
=20
Self-Help,=20
a CDFI in North Carolina, provides small =
business=20
loans in several southeastern states and =
elsewhere=20
around the country. Loans range from a few =
thousand=20
dollars and up to start, buy or expand a =
business or=20
non-profit.
The=20
StartupSmarts=20
section of the BizBest website=20
has more help guides and articles for startup=20
entrepreneurs.
Copyright=20
=A9 2000-2011 BizBest Media Corp. All =
Rights=20
Reserved.
=
|
=20
Daniel=20
Kehrer, Founder & CEO of BizBest=20
(www.bizbest.com), is a leading small business =
expert=20
who has started four businesses, written seven =
business=20
books and delivered quality advice and =
information to=20
business owners for over 20 years. He has been=20
Editor-in-Chief of Business.com and a business=20
columnist, author and media entrepreneur in New =
York,=20
Washington, DC and Los Angeles.
|
BizBest:=20
Business Made Better
Email: TheCWR@CWRMagOnline.com
| <=
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