Final Project
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Small Business Funding
Kaplan University
CM107-04
Professor Vice
March 5, 2013
Small Business Funding
A study conducted by Ewing Marion Kauffman Foundation based on the 2009 year puts the average cost just over $30,000; this estimate is for starting a new business from the ground up (Beesley, 2011). On the plus side finding the funding that is needed has become easier. On September 27, 2010, the President of the United States Barack Obama signed into law the Small Business Jobs Act of 2010 (the "Act") (U.S. Department of the Treasury, 2013). Even though it’s hard starting a small business, the U.S. government is trying to help encourage small business lending. It has become relatively easy to find loans and funding to help getting started.
The first thought for someone to think would be using credit cards. Using personal credit cards is not a good choice; there are a lot of unforeseen turns that can happen. Credit card payments have to be made on time otherwise a collection agency is coming. That means if a credit card is used for the business startup, the business has to be profitable immediately so bills can be paid.
Some people often think of asking a relative for a personal loan. A good thing about a family member or friend helping fund a small business is the interest rate will be a lot lower than a banks. It also makes it easier to get the funding when needed with less contractual hassles. A disadvantage to asking family or friends for a loan is it can cause murky water in the relationship. If a relative invests in the small business he or she may want to make executive decisions. This is why small business lending is encouraged.
The purpose of the Small Business Lending Fund is to encourage Main Street banks and small businesses to work together, help create jobs, and promote economic growth in communities across the nation (U.S. Department of the Treasury, 2013). Our government is making the process of starting small business a little...
Kaplan University
CM107-04
Professor Vice
March 5, 2013
Small Business Funding
A study conducted by Ewing Marion Kauffman Foundation based on the 2009 year puts the average cost just over $30,000; this estimate is for starting a new business from the ground up (Beesley, 2011). On the plus side finding the funding that is needed has become easier. On September 27, 2010, the President of the United States Barack Obama signed into law the Small Business Jobs Act of 2010 (the "Act") (U.S. Department of the Treasury, 2013). Even though it’s hard starting a small business, the U.S. government is trying to help encourage small business lending. It has become relatively easy to find loans and funding to help getting started.
The first thought for someone to think would be using credit cards. Using personal credit cards is not a good choice; there are a lot of unforeseen turns that can happen. Credit card payments have to be made on time otherwise a collection agency is coming. That means if a credit card is used for the business startup, the business has to be profitable immediately so bills can be paid.
Some people often think of asking a relative for a personal loan. A good thing about a family member or friend helping fund a small business is the interest rate will be a lot lower than a banks. It also makes it easier to get the funding when needed with less contractual hassles. A disadvantage to asking family or friends for a loan is it can cause murky water in the relationship. If a relative invests in the small business he or she may want to make executive decisions. This is why small business lending is encouraged.
The purpose of the Small Business Lending Fund is to encourage Main Street banks and small businesses to work together, help create jobs, and promote economic growth in communities across the nation (U.S. Department of the Treasury, 2013). Our government is making the process of starting small business a little...