Startup & New Business Funding Page

Startup & New Business Funding

"Explore a range of funding options tailored for startups and new businesses in Chicago. Whether you're looking for loans, grants, or business credit, we're here to help you get started on the right foot."

Introduction

Funding Your New Business: Where to Start?

Starting a business is an exciting journey, but securing the right funding is a crucial first step. With the right financial support, your business can grow, scale, and reach new heights. Whether you're a first-time entrepreneur or looking to expand, there are several funding options available to you. In this section, we'll explore different types of financing, including startup loans, grants, and business credit, to help you make informed decisions.

Startup Loans – The Foundation of Your Business

What Are Startup Loans and Why Do You Need Them?

Startup loans are designed to help new businesses get off the ground. These loans can cover everything from equipment purchases to hiring employees, helping you invest in your business without using personal savings.

Common Startup Loan Options:

• SBA 7(a) Loans – Flexible loans with low interest rates for new businesses.

• Microloans – Smaller loans designed for businesses in their early stages.

• Bank Loans – Traditional loans offered by financial institutions.

How to Qualify:

• Time in business (typically 1–2 years)

• Business credit score

• Personal and business financials

Business Grants – Free Money for New Entrepreneurs

Understanding Business Grants and How to Apply

Business grants provide free money to startups, and they don't have to be repaid. These funds are often offered by government agencies, private foundations, or corporations looking to support innovation in specific industries or demographics.

Where to Find Grants:

• Local and State Programs – Many city and state governments offer grants to encourage entrepreneurship.

• Federal Grants – Programs like the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) support tech-focused startups.

How to Apply for Grants:

• Research the requirements

• Tailor your application to meet the grant’s specific objectives

• Include a solid business plan and financial projections

Building Your Business Credit – A Key to Long-Term Success

How Business Credit Can Help Fund Your Startup

Establishing strong business credit early on can make it easier to obtain loans, secure better terms, and build vendor relationships. Building business credit is essential to separating your personal finances from your business's financial health.

Steps to Build Business Credit:

• Register your business with the credit bureaus (e.g., Dun & Bradstreet, Equifax).

• Open business accounts with vendors and suppliers who report to credit bureaus.

• Pay bills on time to build a positive payment history.

Why It Matters:

• Access to larger loans with better terms

• Improve cash flow by accessing revolving credit lines

• Lower interest rates on business loans

Alternative Financing Options for Startups

What If You Don't Qualify for Traditional Funding?

If your business is too new or you don’t meet the traditional lending criteria, there are alternative funding options to explore:

• Crowdfunding – Platforms like Kickstarter and Indiegogo allow you to raise funds from the public in exchange for rewards or equity.

• Merchant Cash Advances – For businesses that need quick capital and are willing to repay with a percentage of future sales.

• Angel Investors & Venture Capital – These investors can provide funding in exchange for equity, offering both capital and valuable business guidance.