SBDC Financing Your Business

Small Business Basics- Financing Your Business

The one key to entrepreneurial success for both a start up and existing business is the ability to obtain and secure appropriate financing. Raising capital is the most basic of all business activities, but as you progress with your business you will discover that it is not an easy task. Being informed and having a plan can ease the tension in seeking capital.

There are four major sources to consider when seeking financing: personal savings (primary source for capital), friends and relatives, banks and non-bank lenders, and venture capital firms. It is very important to plan and explore all of your options before making any decisions.

The SBDC does not have any money to loan but your SBDC Business Advisor will suggest an appropriate source for financing based on your needs. The following is a list of resources to assist you in obtaining the capital to run and operate your business successfully.

  • SBA's Guaranteed Loan Programs - SBA's loan guaranty programs provide a key source of financing for viable small businesses that have real potential, but cannot qualify for loans from traditional sources. SBA guaranties are provided through private lenders and nonprofit lending institutions and give small business owners access to the same kinds of financing available to large businesses. Financing programs provided by the SBA vary according to a borrower's financial need. This site provides more information on SBA's programs.
  • ACCION - ACCION New Mexico is a local non-profit organization dedicated to providing the essential tools needed to start or grow a small business: credit and training. At ACCION, they provide loans as small as $200 and up to $50,000 to people without access to traditional credit sources.
  • The Loan Fund - The New Mexico Community Development Loan Fund is a private, non-profit organization that provides loans, training and technical assistance to business owners and non-profit organizations throughout the state. Their services support the efforts of low-income individuals and their communities to achieve self-reliance and control over their economic destinies.
  • Enchantment Land Certified Development Company (ELCDC) - New Mexico small businesses can look to ELCDC for their low down payment and fixed asset-financing needs. They cover the entire state and will gladly travel to your community to share with you the benefits of SBA-504 financing.