3. Finance your Startup

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Once you have developed a business plan, that are several resources for small business financing. 

    Get Organized

    Here are a few considerations for entrepreneurs seeking financing:

    1. Project Costs

      Your “project” includes everything needed to open for business. Building, leasing costs, inventory, equipment, vehicles, marketing, etc. These details should be outlined in the business plan.

    2. Collateral

      Do you have cash or other assets that you will be investing in your business? Generally speaking, lenders like to see some “owner-participation” with regards to financing. This demonstrates a commitment to the business and its success.

      Simply put, equity in the neighborhood of 20 – 30% is generally requested by lenders. If total project costs are equal to $150,000, then an owner should expect to contribute around $30,000-$45,000 in cash and/or assets.

    3. Pre-application

      Lenders often cite that applications are denied simply because they are not complete, or the prospective borrower did not fully understand application requirements.

    Obtaining Financing for your Business

    When you are ready to pursue financing, you will want to visit our Finance your Growth page for a complete list of banks, credit union, alternative lenders and angel investors/venture capital.

    EDB Financing Programs

    You will also want to check out alternative loan financing available through EDB's partner organizations.

    Contact Information

    Economic Development Board
    Business Hours
    Monday – Friday
    8:00 AM – 5:00 PM
    Contact us by Phone
    Address
    141 Stony Circle, Suite 110
    Santa Rosa, CA 95401