Finance Your Business

There are a number of options for getting money to start a small business, such as self-investment (using or borrowing against your own assets), borrowing from family and friends, peer-to-peer lending, crowdfunding, venture capital, and angel investors. A unique method to acquire funding involves utilizing the latest software to develop "pitch decks." These decks showcase business concepts to potential investors through a slideshow presentation. There are two types of financing: equity financing, where you receive funds in exchange for partial ownership in the company; and debt financing, where you receive funds that must be repaid. Grants and awards, in which you receive money that does not need to be repaid, may also be available.

Tips

Starting points:

Use a start up cost worksheet (like one from Start Your Own Business reference book on p. 172, or one from the Small Business Administration website [PDF, 635KB])
Identify what type of financing you want to pursue.
In addition to information about your own business, research the lending institution to make sure it matches your needs.

Suggested strategies:

Start local. Find local banks, city or county economic development offices, regional business competitions.
Use associations geared to a particular demographic of business owners (women, veterans), or business type to see if they offer grants or loans.

Select Resources

The following materials link to fuller bibliographic information in the Library of Congress Online Catalog. Links to additional online content are provided when available.

The Corporate Finance Sourcebook by National Register Publishing
Call Number: HG4057 .A1565
Published/Created: 1979-
Annual publication. Sources of financing are arranged by industry, geographic area, and method of financing.
Entrepreneurial Finance by Luisa Alemany and Job J. Andreoli (Editors)
Call Number: HG4027.6 .E58 2018
ISBN: 9781108431859
Published/Created: 2018
The first section in this book covers different types of funding, from incubators to to private equity. Although it primarily reflects European businesses and with a European perspective, the basics are helpful for anyone at any early stage of financing.

The subscription resources below marked with a padlock are available to researchers on-site at the Library of Congress. If you are unable to visit the Library, you may be able to access these resources through your local public or academic library.

Crunchbase External This link opens in a new window
Use Crunchbase's investor search portal to find firms and specific investors that provide funding for businesses similar to yours.
Requires username and password. See reference staff for assistance.

These are freely available online sources provided by government agencies, trade publications, and organizations.

Business Loans, GovLoans.gov
This site provides information on federal business loan programs.
Fueling Your Business: A Guide to Financing Your Small Business
This comprehensive FDIC guide explains ways to finance your small business.
Lender Match, Funding Programs, Small Business Administration (SBA)
This is a free online tool that connects small business with participating SBA-approved lenders.
SBA Franchise Directory
The SBA has created the SBA Franchise Directory (the "Directory") of all franchise and other brands reviewed by the SBA that are eligible for SBA financial assistance.
SBA Grants
The SBA works with different organizations to provide grants for small businesses, but does not give grants for starting and expanding a business.
SBA Loans
"For small businesses that need funding, SBA works with lenders to provide loans to provide traditional loans." They "do not lend money directly to small business owners, unless the business is located in a declared disaster area."
Small Business Investment Company (SBIC), licensed by the Small Business Administration (SBA)
Find an investor for your business through a Small Business Investment Company (SBIC) licensed by the Small Business Administration (SBA).
Small Business Investor Alliance External
The Small Business Investor Alliance is the association of senior investment professionals focused on the lower middle market whose members represent the entire private capital ecosystem. It is an alliance for professional fellowship, business opportunities, innovation, regulatory expertise, and market data
Small Business Lending Fund (SBLF), U.S. Department of Treasury
The Small Business Lending Fund (SBLF) is a dedicated fund designed to provide capital to qualified community banks and community development loan funds (CDLFs) in order to encourage small business lending. The purpose of the SBLF is to encourage Main Street banks and small businesses to work together, help create jobs, and promote economic growth in communities across the nation.
USDA Business & Industry Loan Guarantees, Programs & Services for Businesses
This link provides information on funding opportunities for rural small businesses through loans, loan guarantees, and grants.
U.S. Securities and Exchange Commission. Small Business.
Learn about ways small business can raise capital by selling securities, which need to follow federal securities laws.

The following guides were created by the Library of Congress to give an in-depth list of resources on a specific topic.

Entrepreneur's Reference Guide: Raising Capital
This page provides an annotated list of books to financing a business.
Small Business Financing: A Resource Guide
This detailed guide breaks down sources by type of funding needed.

Small Business Hub: A Research Guide for Entrepreneurs

Business Reference: Ask a Librarian

Finance Your Business

Tips

Starting points:

Suggested strategies:

Select Resources