Money for Startups

Find out where to get capital for starting your business.

Dear Janet:

I need information on organizations that provide money for start-up capital.

I also need to know how to apply for a tax identification number as the sole owner of my business.

–JE

 

Dear JE:

The Small Business Administration (SBA) has many programs in place to help entrepreneurs get startup funds. Among them is the Microloan program, which makes loans of less than $25,000 to small and startup businesses. An SBA office in your area will be able to help you decide which if any of their loan programs you’d qualify for. (Look in our home business folder for a list of lenders participating in the Microloan program.)

The most common source of startup capital, however, is still individual savings, personal loans, loans from friends or family and credit card debt. If you have trouble finding enough money to get started, rethink your idea and look for ways to cut startup costs.

As far as getting a tax identification number goes, that’s easier than finding cash. Just call your state tax department or state department of revenue and ask them to send you forms.

IMPORTANT NOTE:

Business Know-How(tm) provides general information only and should not be considered individual advice. Consult your own attorney, accountant or other advisor before taking any actions that might lead to adverse consequences for your business.

Get started image

Ready to get started?

Get the expert support you need

Start Now

Related Articles

When Applying for Business Credit, Think of This Acronym

by Joseph Lizio, on July 20, 2022

Crowd Funding for Start-Up Business Financing

by Joseph Lizio, on July 20, 2022

Need Investors? Check Out the New Crowd Funding Rules

by Tim Parker, on July 20, 2022

How to Know When It’s Time for Funding

by Tim Parker, on July 20, 2022

Business Loan: 3 Ways To Make It Work Best

by Joseph Lizio, on July 20, 2022

The Dangers of Asset Based Loans For Small and Independent Retailers

by Ted Hurlburt, on July 20, 2022