How To Get Startup Money For A Business? A Must-Know Guide

Kent McDIll
April 25, 2022
How To Get Startup Money For A Business - A Must-Know Guide
How To Get Startup Money For A Business - A Must-Know Guide

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Congratulations! You have decided to embark on a very American pursuit, the dream of starting your own small business. The next big step is to get startup money for the business.

The United States was built on the promise that a person could rise above their current station in life with hard work. Having the drive to create your own business puts you in good company with the millions of other Americans citizens or immigrants who have gone down the same path.

It is, in fact, important for you to understand that you are not alone in this effort. Besides the many others who have developed their own companies in the U.S. over the past 300 years, you also have the support of the federal and state governments, which bend over backward to provide you with financial loans, grants, and subsidies to help you get started and keep you afloat as you develop your sales and marketing strategies and get your company’s name out to consumers.

How To Get Startup Money For A Business – Getting Started

Every suggestion below should be executed on three different levels – federal, state, and local. There is nothing to prevent you from getting financial assistance from all three levels of government, which desire nothing more than to support Americans in the creation of more commerce.

We will start with a look at what the federal government offers startup and small business owners in terms of financial and informational support.

One of the most successful departments in all of the U.S. federal government bureaucracy is the Small Business Administration, which has as its state purpose “to maintain and strengthen the nation’s economy by enabling the establishment and viability of small businesses and by assisting in the recovery of communities after disasters”.

The SBA offers funding programs in the form of loans, investment capital, surety bonds, and grants to companies that qualify for such financial support. These financial vehicles are offered at low-interest rates with favorable payback options and stipulations in order to give small business owners the time to develop and cultivate a market for their products or services.


The SBA provides you with the name of lenders who are experienced in loaning funds to small businesses with very low-interest rates attached. The SBA sets guidelines for the loans made by private lenders as well as community development organizations. This federal oversight makes it easier and safer for small business owners to receive loans.

Investment Capital

The SBA works with Small Business Investment Companies (SBIC), which are licensed and regulated by the SBA to offer small businesses necessary capital in the form of debt and/or equity. The SBA provides funding to the SBICs, which then offer those SBA-guaranteed funds to small businesses.

Surety Bonds

Surety bonds are guarantees that your company will perform its services as described in contact, providing a guarantee to a consumer that your company is liable to perform its services as described.

Furthermore, the SBA works with private and public companies which issue surety bonds to provide such bonds to companies that would benefit from the federally protected promise of work that will be completed as stated.

What If I Just Need Advice On How To Get Startup Money For A Business?

The SBA offers a virtual library of informational articles and guides on its website to direct small business owners on how to run a successful business. As a small business owner, you are likely to visit the SBA website daily for answers to your most basic questions.

If you prefer a human touch to your advice, the SBA sponsors Small Business Development Centers throughout the country. These are local organizations which work with the SBA to point small business owners in the proper direction to acquire funds, file necessary documentation, and understand local laws and regulations regarding new business development.

State And Local Assistance

As much as the federal government works to provide assistance to assist, working with federal agencies can be ponderous and complicated. Almost every program the federal government provides is matched by similar efforts on the state and local level. In fact, many of the state and local programs are funded in part by federal dollars.

These organizations, including the SBA Development Centers, do more than provide funding opportunities. They are better suited than the federal support programs to provide information regarding health and safety regulations, environmental issues, or building codes.

Moreover, your efforts to find funding and advice should concurrently invigorate opportunities at the federal, state, and local levels.

Your Particular Industry

Depending on the business you are getting into, there are non-profit groups created to promote companies in particular industries or trade areas.

If you are interested in starting a new furniture store, for example, an internet search for “furniture small business assistance” will likely result in the names of groups focused on small enterprises in that selected area of commerce.

Working with such organizations allows you to get advice that is streamlined for the business you are in, rather than offering general business concepts which you have likely already moved past.

Your Special Circumstances

There are also non-profit organizations which work with small business owners who start under special circumstances. For example, the Veteran’s Business Outreach Center assists former military members in creating new business opportunities and can help guide small business owners through the morass of red tape connected to the federal Veteran’s Administration.

Similarly, there are organizations aimed at helping women and those of certain races or ethnic backgrounds to assist in getting off the ground with a new business construct—the U.S.

The Department of Commerce operates the Minority Business Development Agency, which is dedicated to the promotion of minority-owned businesses, as well as opportunities within minority communities.

How To Get The Financial Support?

How To Get The Financial Support

Getting financial support for your new business is very important. So is maintaining your good standing with the Internal Revenue Service, which, like the SBA, is interested and supportive of your small business success.

The IRS provides the Small Business and Self-Employed Tax Center; which offers answers to questions about numerous financial issues beyond mere tax considerations.

This site can help you devise the proper organizational structure so that you do not pay more in taxes than you need to, as well as advice about working with freelancers or contractors. Make use of what is available

Starting a new business is a scary proposition, and there are many questions you have about how to make it work and become profitable.

You can reduce the uncertainty in many areas by taking advantage of all the governmental programs which exist to assist you in your startup effort.


No matter what stage you are in the development of your new business; it would behove you to spend a day online looking over all of the programs and information available to you. The many small business owners who have come before you have traveled this road and made mistakes which you can avoid by utilizing all of the preparation information that is available to you.


Your Financial Success Starts Here


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