One of the areas that is perhaps the most frustrating for small business owners to get a handle on is having access to sufficient funding to operate their business. We have seen over one trillion dollars of tax payer money flow into the banking sector over the last decade. Yet, try securing funding if you are self employed. It’s not going to happen. Sure, there are success stories. Yet for every one happy small business owner, there are thousands who cannot get funding approval. From a banker’s perspective, it is not worth the risk when they are getting free money from tax payers and getting interest paid on that money by just leaving it on deposit. Free money. Why should they lend it out in that case. The government agencies, state agencies, and banking industry lobby will all state that that there is plenty of access to funding for small businesses. But we know the truth. There is literally none available.

Yet, you have rent, payroll, materials, utilities, advertising, and countless other bills due every month. The pressure can sometimes be overwhelming. Every business owner struggles with the operation or growth of their business at some point, so you are not alone. It may seem frustrating and hopeless, but there is good news ahead for you. You do have alternate choices.

Here is a list of options for you that may provide the liquidity you need to get you over the next hump.

1. Economic Development Funds – If you live in economically depressed regions you may find that there are financing funds set up by communities to support and finance small business operations. Sometimes the support is through resources such as support services, consulting services, etc., and sometimes the support is straight up financing with low interest loans. Typically though, the financing part has a qualification to it, such as not making more than a ceiling amount, and of course the submission of a business plan or a few years of financials showing that you have a going concern.
2. State Development Funds – Every state has an Economic Development Fund. Research yours to see what the qualifications may be. Most have access to fixed loans, credit lines, and real estate loans.
3. SBA – If you are on the cusp of being approved by a commercial bank but not quite there, going through the SBA (Small Business Administration) can get you there. The SBA guarantees 90% of your bank loan, so banks have no risk in lending money. You still need to qualify and show you can repay the loan. But if you are close to the approval of a loan, this will definitely get you there. You will likely want to go with the SBA ‘Express’ Line, literally a one page document and three years of financials. The advantage of going through the SBA versus an EDF is that there is no ceiling involved.
4. EXIM Bank – Does your company export products, and are your products at least 50% made in America? If so, you may want to contact the EXIM (Export Import) Bank. They have lines of credit, fixed loans, and most importantly for exporters…insurance on receivables. Imagine all the business you can write knowing that your receivables are 98% insured by the US Government.

So do not give up. All small business owners have struggled with financing at some point. Look into these four options to see if one, or more, can be utilized by your business. Good luck.