Financing a Small Business 

There are no government grants for starting a new business.

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 site contains a wealth of information for small businesses.

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

 
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Micro-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, including Colfax and Havana Fact Sheet	$5,000-75,000
CHFA (303) 297-2432 www.colohfa.org	Colorado Small Business & Entrepreneurs	Wide variety of programs
Colorado Enterprise Fund 303-860-0242 www.coloradoenterprisefund.org	12-County Colorado Front Range Loan Information	$1,000-$250,000
Colorado Lending Source 518 17th St., #1800 Denver CO 80202 (303) 657-0010 info@coloradolendingsource.org www.coloradolendingsource.org	Colorado General Guidelines	SBA 504 $25,000 - $1.5 million 50% must be through a partner lender
SBA Community Express Loan Programs The Aurora BDC serves as a Technical Assistance Provider. Call for app't:  (303) 326-8690	None SOHO Loan General Information	$5,000, $10,000 and $15,000

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The City of Aurora's BDC administrates 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 to mitigate the impact of Fitzsimons' closure on local small businesses). Call for an appointment, (303) 326-8690.

Also available at the Aurora Business Development Center:

Financing Smarts I & II - - Sign up for a class today!
After taking the class, the one-on-one counseling session becomes 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.
Please consider taking the class, Fiunancing Smarts I, before setting an appointment.
                

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