Each loan, grant, and venture capital program is different. Make sure you research all available options to find the one that’s right for your business. Depending on the type of funding you need, what industry you’re in, and other factors, there are several ways you can get financial support. Show
General ProgramsThe federal 504 loan program through the Small Business Administration (SBA) is a versatile option for small businesses. At the state level, MassDevelopment offers a broad range of funding options through its loan programs for Massachusetts businesses. The Massachusetts Growth Capital Corporation specializes in options for businesses unable to obtain traditional funding. Research and DevelopmentThe Small Business Innovation Research (SBIR) program funds research and development companies creating technology with commercial potential. The START program is a supplemental financing option for Phase II SBIR companies in Massachusetts. Similar to the START program, the MassRamp program is an additional funding source for Phase II SBIR companies in the life sciences industry. Early-stage life sciences companies can get funding from the Accelerator Loan Program. TechnologyMassVentures is a venture capital investment group that funds early-stage, technology-driven companies. Clean energy and environmentIf you own a business in the environmental industry, there are environmental loan and grant programs available. You can also find a variety of financing options from the Massachusetts Clean Energy Center. Regional financing optionsYou may be able to get funding help from regional programs if your business is in a certain area.
Other Specialized Financing OptionsYou may be able to get funding for specific activities.
More InformationThe SBA offers online courses related to business financing, general information on loans and grants, and a list of approved lenders. You can use grants.gov to search for federal grants, and the New England Venture Capital Association’s investor database to find local investors.
Small businesses are often seen as the little guys, but they actually make up the majority of the U.S. economy. As a small business owner, you should know the value of your business and how you impact those around you – including big companies. According to the U.S. Small Business Administration (SBA), small businesses account for 99.7% of companies with paid employees, and more than one-third of known U.S. exporting value. What’s more, from 2000 to 2017, small businesses accounted for more than 65% of net job creation. With such a large footprint in the U.S. economy, it’s clear that small businesses are the backbone of America. Why are small businesses important?Small businesses are important for many reasons – job creation, exports, innovation – but perhaps their biggest impact is on their local communities. Leslie Hassler, a small business scaling strategist, explained how successful small businesses leverage their resources within their communities. “As small businesses continue to scale, their impact on the economy strengthens as they hire more people and build more connections with other small businesses and nonprofits, which knits an ecosystem of personal connections,” Hassler told Business News Daily. “Today’s small business owner is not only concerned with their personal success, but the success of their team and their communities.” In fact, the AMEX 2018 Small Business Economic Impact Study found that approximately 67% of every dollar spent at a small business stays in the local community. This cycle stimulates the economy. Why is the presence of small businesses important for large businesses?Although it may seem like large companies hold the power, small businesses are a key element in their success. Thibaud Clement, CEO of Loomly, listed five ways that small businesses can represent significant opportunities for large businesses.
Without small businesses, large companies would not be able to thrive the way they do. Small businesses provide many essential opportunities that cannot be overlooked. How do small businesses influence big businesses?Small businesses influence big enterprises in several ways. For example, Hassler said that many large businesses learn from the ingenuity, innovation, and agile management of a small business. Since big businesses are often blocked by red tape, they watch small business trends to see what’s working efficiently in the market in real time. They then use those pivots to make quicker data-driven decisions. “Because small businesses are more agile than big businesses, the decision-making process is much faster,” Hassler said. “That means smaller businesses can test new technologies, processes, systems and marketing methods much faster than big businesses.” In addition to spearheading innovation, Angelique Rewers, CEO of BoldHaus, said that small businesses act as competition to big businesses in the war for talent, which is impacting the standard for workplace culture and diversity. “Smaller companies are able to more easily create workplace cultures and work-life integration programs that employees today are looking for,” Rewers said. “But I would argue this is good for big businesses, because it’s pushing them to do better on diversity, leadership programs, wellness and more.” What advantages do small businesses have over large businesses?Due to strength and resources, large corporations have many advantages over small businesses; however, the opposite statement can also be made. For example, small businesses benefit from a higher threshold for risk tolerance and speed. They can freely innovate and change as needed, since they aren’t blocked by as many protocols, guidelines, office politics and management that hinder big businesses. Additionally, Clement said that small businesses typically benefit from fewer legal regulations. “While all businesses must follow the law, some specific laws apply differently depending on the size of a business, usually with additional requirements for larger businesses compared to smaller businesses. This is especially true when it comes to human resources, with specific responsibilities applying when a company grows over 20, 50 or 500 employees.” Since small businesses typically work closely within their local communities, they have the ability to better understand the needs of their customers. “The biggest advantage – and the one we hear most often cited by corporate customers – is that small businesses are hyper-responsive to their needs,” Rewers said. “They can turn on a dime, and in today’s world, agility is everything.” In addition to keeping a finger on the pulse of what consumers want and adjusting their strategies accordingly, small businesses offer a more personalized experience for their existing and potential customers. This is key, as consumers are increasingly demanding personalized products and services. How can small businesses successfully work with big businesses?Small business owners shouldn’t fear large corporations, and vice versa. The two can work together harmoniously; however, small business owners should be aware of a few things when working with large enterprises. Clement said that large businesses have more internal processes and policies, which come with time frames to respect, rules to follow, and requirements to meet. To combat this, he listed three strengths that small businesses need to succeed when working with corporate clients.
Small companies have the potential to thrive in today’s marketplace, as long as they stay vigilant. They are the lifeblood of the U.S. economy and should use their resources and size to their advantage. “There exist more opportunities today for both small and large businesses to thrive, even in a cooperatively competitive way,” Hassler said. “It will take continued intention from both sides to see that today’s symbiotic relationship continues to flourish.” How does the Small Business Administration help small businesses?SBA provides free counseling and low-cost training to new entrepreneurs and established small businesses in over 1,800 locations.
How the Small Business Administration assists small business owners?The SBA assists small businesses in four main areas: financing, education and training, government contracting, and providing a voice in policy matters. These programs are aimed at helping entrepreneurs start their businesses and keep them thriving.
How does the Small Business Administration SBA provide financial assistance?The SBA offers financial assistance to qualified small businesses that cannot obtain financing on reasonable terms through normal lending channels. This assistance takes the form of guarantees on loans made by private lenders. (The SBA no longer provides direct loans.)
How does the Small Business Administration assist in the growth and development of small business?The Small Business Administration offers a variety of financial resources, including small loans for business owners who would not otherwise qualify for a loan. In the microloan program, the SBA loans money to nonprofit lenders, who, in turn, provide loans of up to $50,000 to the small business owners.
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