Financing a Small Business 

There are no government grants for starting a new business.
FAQ:  How do I get a small business grant?
The U.S. Small Business Administration does not offer grants to start or expand small businesses, although it does offer a wide variety of loan programs. While SBA does offer some grant programs, these are generally designed to expand and enhance organizations that provide small business management, technical, or financial assistance. These grants generally support non-profit organizations, intermediary lending institutions, and state and local governments.
For more information, visit the SBA's grants section or grants.gov.

Home-Based Business Grants: Beware of Grant Scams

Financing Facts
Financing Questions 
Basic Loan Information
Sources of Financing
What Lenders Want - Financial Information You'll Need to Provide

Financing Facts

• The majority of new businesses are initially financed by personal investments from the owner, family, friends and personal business contacts. 
  

• While it is not impossible, it is extremely difficult for start-up businesses and small businesses with less than three years of history to obtain outside financing.
  

• Financing existing businesses through conventional lenders is possible if the business has shown growth in sales and profitability.
  

• It is essential to keep complete financial records to present to lenders and investors.
  

• Regardless of where you get your financing, you need to put together an organized and
  well-thought-out financing proposal. See Business Plan.

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Financing Questions

• What kind of business person am I?

• What do I need financing for?

• Are the terms of the loan acceptable?

• When do I need the financing?

• How will I pay the money back?

• How much money do I have to contribute to my small business?

• How will capital make my business better?

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Basic Loan Information

The Small Business Administration (SBA) site contains a wealth of information. Also, visit with your local banker for the bank's loan application procedures.

Credit Information - To get information on your credit rating, use the only official website for obtaining free annual copies of your credit report:  www.annualcreditreport.com.
Do not click on a website that someone else has provided for you nor one that you find by searching on-line. You may also call toll-free, 1-877-322-8228.

Capital - If you are seeking a loan, the financing institution will  require that you personally invest money of your own in the business (approximately 25-30% of the loan amount)

Collateral - Collateral, such as real-estate, is necessary to  back up the loan. Business start-ups often use their home for collateral.

 
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Loan Programs

Program	Geographic Restrictions	Loan Size
City of Aurora Business Revolving Loan Fund (RLF) Call for app't:  (303) 326-8690	City of Aurora with emphasis on aging commercial corridors Fact Sheet	$5,000-75,000
CHFA (303) 297-2432 www.colohfa.org	Colorado Small Business & Entrepreneurs	For established businesses; commercial real estate loans (not for working capital)
Colorado Enterprise Fund 303-860-0242 www.coloradoenterprisefund.org	12-County Colorado Front Range Loan Information SBA Technical Assistance Provider (TAP) for SBA micro-loan programs	$1,000-$250,000 $5,000 - $50,000
Colorado Lending Source 518 17th St., #1800 Denver CO 80202 (303) 657-0010 info@coloradolendingsource.org www.coloradolendingsource.org	Colorado General Guidelines	SBA 504 loans; $25,000 to $2,000,000 50% through a partner lender
SBA Loan Programs Colorado Enterprise Fund serves as a TAP for SBA micro-loan programs www.sba.gov	None	$5,000 - $50,000

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The City of Aurora Development Services Division administers the Revolving Loan Fund, designed to increase access to capital for existing small businesses, particularly in, but not limited to, Original Aurora (funded by an Economic Development Administration Title IX Grant).
Call for an appointment, (303) 326-8690.

Also available at the Aurora Business Development Center:

Financing Your Business - - Sign up for a class today!
After taking the class, the one-on-one counseling sessions, available by appointment, become more productive.

One-on-one counseling with a City of Aurora Small Business Specialist is available by appointment at no charge. Call (303) 326-8690.

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