Using The Government To Get Funding For Your New Business

There are a variety of options for new entrepreneurs to
acquire funding
for their new businesses. It is beneficial that they comprehensively
research their choices to ensure they find an option that is best suitable for their
unique situation. One of the things that new business owners need to consider is
the level of control they want over their company. If company founders do not want
to share control with other partners, then options such as angel investors and venture capitalist funding
are not good alternatives. Since many entrepreneurs do not have enough disposable
income to fully fund a new business, then they will have to explore other options
to obtain business capital.

What the Small Business Administration can do for you
One way to get funding for a
new business is to utilize the help of the government. There is different options
available for small business owners from government and local authorities in the
form of low-cost loans and grants. While the Small Business Administration does
not provide this type of financial assistance directly to entrepreneurs, they do
work alongside local banks that will offer such funding to qualified applicants.

SBA grant requirements
The SBA will be able to advise the proper options that are available for an

type of business from a list of federal and state grants. State-funded grants are
non-repayable but extremely competitive to obtain. Such incentives are often given
to businesses in certain industries and locations, particularly in areas that are
being revitalized and in fields such as education, science, research, engineering,
and/or non-profit ventures.

Often times, grants are awarded to encourage and assist small business entrepreneurs
by stimulating local economic development through employment opportunities and community
involvement. Female entrepreneurs and ethnic minority groups are probably the largest
recipients of small business federal grants. The SBA encourages small business development
in these fields by not only giving access to
business capital
but also educational,
training, and networking opportunities to make their businesses thrive.

SBA loan requirements
Through local lending institutions, the SBA acts as a guarantor to those who qualify
for small business loans. The loans are usually offered at very reasonable rates;
however, the borrower must meet certain criteria in order to obtain such funding.
One requirement of the applicant is to have a strong credit rating because it is
indicative of their repayment history and financial motivation to pay off any existing
debt. Applicants who have poor credit ratings and/or have filed for bankruptcy in
the past demonstrate their difficulties in paying back any borrowed money and will
most likely be unapproved for federal and state loans.

The second requirement for approval of SBA loans is the entrepreneur’s personal
investment in his/her own business. The business owner is required to have invested
at least 25% to 50% of their own personal capital of the loan amount requested.
By investing his/her own capital in a company, the entrepreneur will show others
they truly believe in their business
and are serious in moving their company forward.

Another major prerequisite for SBA loan approval is a comprehensive business plan.
This plan should detail the company’s objectives and how the
new business
will distribute
the prospective loan amount in order to stay financially sound throughout its development.
It is necessary for every entrepreneur to have a solid business plan and confidence
in their investment. It may also help if a new business owner has established a
good relationship with credit rating firms and/or have prospective traders and suppliers
who are willing to work with them should the company successfully launch. In this
manner, an entrepreneur can add credibility to their loan application process.

Finding ways to
raise capital
for a new business is perhaps one of the most stressful
aspects a new entrepreneur will face. From angel investors to bank loans, the choices
are numerous. By conducting research, a new business owner will be able to find
an option that is most compatible with their unique situation. If they do not like
the idea of sharing ownership with others, then angel investors and venture capitalists
may not be a viable option to consider. However, with the help of the SBA and certain
criteria, they may be able to qualify for federal small business loans and grants.


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Using Bank Loans to Fund Your New Business

For an
, raising capital for a new business can be as easy as picking
up the telephone and calling a wealthy relative for money or as tedious as applying
for federal and state grants. While each option certainly has its pros and cons,
the entrepreneur should conduct a fair amount of research to make sure that the
selected choice(s) is/are appropriate for his/her unique situation.

Small business bank loans
Some people may choose to obtain commercial bank loans to fund their small businesses.
While this may seem like a good idea to
raise the needed capital
, one must not rely
solely on a bank loan to cover all expenses for a startup since most startups require
additional amounts of money to sustain. The borrower should also keep in mind that
a monthly payment schedule and maintenance fees are required almost immediately.
Guidelines may differ from bank to bank; however, there are certain standards that
all banks abide by when approving an applicant for a small business loan.

1. Referrals

will often select a financial institution they normally do business
with or have had some business tie with in the past. It is always a good idea for
a new business owner to select a bank which they have already had an existing relationship
with. If none exists, then local businesses, attorneys, and accountants are other
good resources for a lender referral. If these contacts have had strong business
relationships with the lenders, then the entrepreneur will have a better chance
of obtaining the needed funding.
If for any reason the entrepreneur has doubt that a bank will respond favorably
on his/her behalf, then they should
request funding
from other banks where they may have a better standing.

2. Credit history

One’s credit history is extremely significant for small business loan approval.
Financial institutions often rely on an applicant’s solid credit rating as the basis
for the acceptance of a small business bank loan. If an entrepreneur has stellar
credit and a great business history with a bank, then his/her chances of
receiving funding
can be strong. However, a poor credit rating will damage
the chance for funding. Before approaching a lender, the
must first
repair their credit history and then proceed with the application process in order
to be considered for a bank loan.

3. Business plan
Another important piece of the criteria for
to successfully obtain
small business loans from their banks is to present their business plan to the prospective
lending officials. The business plan has to be documented on paper since it is ineffective
and not enough to remember every aspect of a plan through recall. By organizing
and documenting one’s business
, company objectives, and financial forecasts for easy accessibility,
the entrepreneur will show their prospective lenders they are serious about obtaining
a loan and have properly planned their new venture accordingly. Presenting a well-detailed
business plan can certainly increase one’s chances of raising capital through a
bank loan.

4. Prospective customers
In addition to credit history, referrals, and the presentation of a business plan,
the new business owner should also provide the lending officials with prospective
customers who are willing to purchase their products and services. By having gathered
a considerable amount of consumers, the
will show the bank’s lending
officials that the business has the chance to succeed and that they will be able
to pay back all owed loan debt.

5. Backup plan
Entrepreneurs will often be rejected multiple times for bank loans before one financial
lender may approve them. While the concept of rejection can be extremely difficult
to bear, new business owners should be persistent in their
funding quest
. They should ask lending officials the key components behind
the loan denial, learn from those results, and mend any issues before approaching
the next lender. In addition, they should implement an alternative plan to raise
the needed capital if they are not able to obtain a commercial bank loan. Lenders
may ask the applicant their alternative strategy, and rather than show discouragement,
the entrepreneur should exude confidence in their business ideas and in their goal
to obtain funding.

Obtaining a bank loan for startup capital is a great way of running a
new business

through a reputable company. If an entrepreneur is serious about their
business ideas and utilizing ways to market those ideas, then it would be
very beneficial to get funding
from a local bank. While certain restrictions may apply, most business owners who
qualify will have the advantage of utilizing those funds immediately for their new
business endeavor. One downside of commercial bank loans is the fact that a solid
credit history is required for consideration. In addition, high monthly payments
with interest and maintenance fees may be costly, especially for a young company
that has not yet established a solid track record of financial success.


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Frequent Lies Of Venture Capitalist (VCs And Equivocations)

Venture capitalists fund
different varieties of businesses. Though reviewing a business
idea and evaluating its implementation takes time, they must eventually arrive at
a decision as to whether they will fund the
or not. However, they may
equivocate with entrepreneurs, refusing to offer a straightforward “yes” or “no”
about whether or not they will fund the start-up business. Entrepreneurs must take
care when dealing with venture capitalists; while getting a “yes” answer might take
a good deal of time, the entrepreneurs must be certain, after a length of time has
passed, that they receive a response in either direction.

Venture capitalists, as much as any other businesspeople, almost certainly prefer
to avoid conflict, and they may hold off on responding in the negative in order
to avoid potential conflicts. For this reason, many firms may offer deliberate falsehoods
to evade the unpleasant word “no,” or they may pretend more interest in a successful
business idea than they actually possess. Let us examine a few of the excuses venture
employ in place of a straightforward negative answer and a few exaggerations
they will give an approved start-up business:

The Good Guy vs. His Bad Partners

A venture capitalist may state that he liked your business idea and made every effort
to sell it to his business partners, but that his partners rejected the idea in
spite of its evident merits. While this scenario may well have been the case—perhaps
this venture capitalist did appreciate the idea, even though his valiant battle
against his less eager partners may be an exaggeration—the idea may not have reached
the partners. Sometimes, the venture capitalist with whom the
has discussed
the idea did not feel that the business idea could be successful and therefore did
not bother discussing the idea with his or her partners. If the venture capitalist
indicates that any member of the firm turned down the idea, this is his or her roundabout
way of saying no to the idea.

“We’ll Fund you once you get paying customers!”

Venture capitalists may also avoid the hackle-raising word “no” by claiming to re-evaluate
the business model once they see it generating revenue. Once the entrepreneur has
started the business by him or herself, then, the venture capitalist might be willing
to provide more capital to keep the business running. Considering that the entrepreneur
has approached the
venture capital firm
in order to obtain the start-up funding,
this excuse seems a slightly transparent way to refuse start-up funding. Some venture
rephrase this form of refusal by saying that the entrepreneur can only
convince the firm to invest only once the business has shown itself capable of generating
revenue, again negating the purpose of approaching the venture capital firm.

Venture Capitalist Time Commitment

Venture capitalists who tell an approved business that they will devote a good amount
of time to supervising the business are usually greatly exaggerating. Including
board meetings, an entrepreneur should assume that venture capitalists would spend
between five to ten hours a month on a company.
, then, must handle
the day-to-day operations by themselves, keep careful records of interactions and
business, and present these findings at the board meetings in a concise, efficient
manner. The venture capitalists’ main concern is the bottom line: is the company
generating revenue? The owners must expect to handle much of the day-to-day affairs.

Business Networking Promises

At any stage of the process, from seed stage to expansion stage, venture capitalists
claim that they can connect the company with its potential customers. The venture
capital firm may promise to open doors for the new business. Although venture capitalists
can help in connecting with potential customer, every startup realizes that they
can get better connections in a much shorter time without the help of VCs. The amount
of help a VC can provide is always questionable. Start-up businesses, then, should
expect to forge their own partnerships without the help of VCs.

Much as anyone else in the business world does, venture capitalists seek to pursue
significant financial gain for themselves. Entrepreneurs who seek a venture capital
firm’s assistance at any point in beginning their businesses, from starting it to
expanding it, must be able to translate a venture capitalist’s equivocating speech
into plain English and learn when “maybe” means “no” and, “We’re behind you all
the way” means “You’re on your own.”

Written By
Pradeep Tumati (Principle,


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Raising Venture Capital For Your New Business

Raising venture capital for your new business can be a tiring and frustrating process.
There are numerous options available that can help you raise the
venture capital
to get your business up and running. From stopping by your local bank to
asking friends and family members for a loan, finding funding for your new business
can be easy if you know where to start.

The first place you should start when you finding funding for your new business
is to have a strong business plan already drawn up. This will allow you to impress
any potential creditors and investors that you have thought long and hard how your
company will be fun. Your
business plan
will also better explain to these people
what type of financial structure you will have and how soon you will be making money.
This will come in handy since they will want to know how soon you will start making
payments on the loans you have acquired.

Speaking of picking up loans, your local financial institution is a great place
to start when you are finding funding for your new business. Many banks have programs
regarding venture capital and small business. If you have excellent credit and are
in good standing with the bank, it is a great place to begin your search for venture
capital. The bank will definitely be interested in your business plan, so it is
important you have one developed when you go to meet with them.

Raising the venture capital necessary to get your
new business up
and running can
be difficult or easy depending on how you approach it. By understanding what you
want for your business and possessing a strong business plan, you will be that much
closer to finding funding for your new business.


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The Changing Face of Angel Investors

Most small businesses can be financed by numerous sources, including personal funding, financial support from family and friends,
and bank loans. Despite all of the capital resources
available, it is a well-known fact that financial institutions make it quite difficult
for new entrepreneurs to borrow money, especially since many new companies have
not yet established a strong record of success. An angel investor makes it possible
for young companies to obtain the needed startup
when other traditional means of financing are not enough. Since
many angel investors do not require monthly repayment terms, they can also benefit
those who cannot afford monthly payments on traditional loans. Angel investors can
actively help entrepreneurs who seek capital for their small businesses so their
start-ups, expansions, and innovative ideas can become a reality.

Typical profile for an angel investor

The typical
angel investor
is a retired entrepreneur or business executive with
a passion for investing. Their strong enthusiasm for the job allows them to look
beyond the monetary aspects of an investment. They enjoy using their experience
for the prospect of economic growth and in helping other entrepreneurs obtain success
in their ventures through mentoring. They are often college educated, invest in
groups (angel networks), and make an average of one investment every two years.
The typical investment of an
angel investor
ranges from $10,000 to $250,000; however,
they are known for investing up to $1.5 million dollars in any given venture.

Angel investor expectations
venture capitalists
, angel investors typically do not want a large amount
of control in the companies that they invest in. Instead, they desire a large return
on investments throughout the course of several years. They believe that a higher
rate of return will compensate for the amount of risk in a given business endeavor
(at least 25% ROI), and often seek some sort of active role in managing the company.
One positive aspect of angel investors is that they can provide capital for small business startups that are well under
$500,000 (the minimum amount of funding that venture capitalists provide). Angel funding is definitely a clever alternative to consider
for small to medium-sized businesses that seek business capital but do not want
to give up too much stake in their company.

Angel investors in America
It is estimated that approximately one-seventh of all startups in the United States
receive some sort of funding from angel investors.
According to the Center for Venture Research, there are currently 220,000+ active
angel investors in the U.S. who typically provide an average of $150,000 for each
business opportunity.

It is also important to note that experienced entrepreneurs and accredited angel
investors are joining together to form groups and networks. Rather than the traditional
single benefactor of the 1970s, it has become increasingly common for angel investors
to operate as part of an angel syndicate or confederacy (a
group of angel investors
). The benefit of having angel networks is that
each member is able to raise their potential investment level appropriately. Angel
networks are generally local organizations made up of 10 to 150 accredited investors
interested in early-stage investing. In 1996, there were about 10 angel groups in
the U.S. Since then, the number of angel groups has steadily increased and account
for more than 250.

The advantage of angel networks
As with any business endeavor, angel investors can greatly benefit from the formation
of networks. As a group, they are able to designate specific tasks to each other.
A select few can examine hundreds of business plans while others can present their
findings to other group members. Since each group member has a common goal of pooling
their funds together, they can collaboratively make larger investments. Each member
can also have the opportunity to invest
in multiple business endeavors since their contribution as a single member of a
group is significantly less than if they were to be the sole provider of an investment.

Many angel partnerships are willing to accept executive summaries or
business plans

by e-mail, while other groups prefer entrepreneurs to fill out a template on their
website. If there are prospective business endeavors of interest, an angel network
screening committee will select this group of businesses for further investigation.
Of those choices, only a few will be invited to present before the entire angel

Other angel investor trends
Since angel investors have emerged in the 1980s, not only have they progressed into
syndicates but they have also increased their investment amount. Angel investors
typically invested anywhere from $10,000 to $150,000 per business venture. Today,
each angel investment is more along the lines of $500,000 up to over $1 million,
an amount that is very similar to venture capital
. This new reality should encourage entrepreneurs to approach angel
investors the same way they would approach venture capitalists.

This means that small business owners who seek angel capital should be prepared
to provide a detailed presentation of their business venture’s opportunities and
risks. Supporting documentation, such as a summary of their business proposal, financial
predictions, and background information of partners, advisors, and members of the
management team, should be presented to the angel network. In addition, entrepreneurs
who are able to successfully attract an
angel investor’s
attention should have their
attorneys explain and negotiate the deal so there are no legal misunderstandings
in the business arrangement.

In the past several years there have been different growing trends of angel investors.
Since their solo days in the 1970s, there has been the gradual formation of angel
groups in order to collectively pool resources and expertise together. There have
also been more investments in the fields of technology, media and entertainment,
and the rise of many women-led ventures in the United States.

In today’s technologically adept society, the Internet has made it possible for
entrepreneurs to network with other investors worldwide. This once local occurrence
has now reached global recognition, where many small business owners who seek funding
can post their business proposals online for potential investors. Likewise, angel
investors can actively search for prospective business opportunities. Websites such
as can unite online communities from around the world and connect
investors and entrepreneurs through profile matching and online networking.

Go4Funding is a fast and effective way
of locating the capital entrepreneurs need. Entrepreneurs will be given access to
thousands of potential investors around the globe, increasing their chance of raising
capital for their start-up. Investors can also use this online platform to target
specific business proposals. can benefit the
and investors
by providing an online centralized network so both parties can successfully exchange
ideas, advertise, and obtain online support through forums and educational materials.


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About Capital Access

When starting a
new business
of any type you should know there are a couple of government
programs that although they are mainly aimed on research, can give you capital access
in order for you to create a company. The best way to find out about the various
sources that could grant you capital access is through the Capital Resource Locator.
The Capital Resource locator has all sort of information concerning the possible
funding as micro lenders, financial institutions, intermediaries and other sources
of funding and each of this possible loaners have their own criteria of selection
and basic guidelines.

Most of the banks and investors consider it difficult to finance a startup business.
If you want to get capital access and start a firm you may address to revolving
loans, which are usually granted and handled through micro loans or city or municipal
programs. The funding you can get from these programs depends on the company size
and the financial position. A city or municipal program usually requires that for
startups or acquisition the borrower inject loans for 30% of the amount of the capital
access. The main reasons for getting a capital access loan are to buy the equipment
necessary for your firm.

The borrower must personally guarantee the capital access loans that he gets. In
some cases owners that have 20% or more of a business are asked to guarantee these
loans with personal assets. Usually the assets are needed for collateral businesses.
The way a financial institution determines if your business is a good risk is by
evaluating the repayment ability of the capital access borrower. The way you can
return the loan id verified mainly through the cash flow of the sector you want
to start your business in. Other important factors that may influence the institutions
to give you the capital access are good character, collateral and owner’s equity
contribution, credit history, etc. Remember that if you got a good credit history
your chances of getting an approval on the capital access loan are bigger. Nonetheless,
if you have a bad solid credit history, this can be repaired or explained. You can
still get the capital access from these institutions, except the cases of bankruptcy.

The capital access bond has a lot of advantages. First of all attractive it has
bonus rates, higher rates for bigger investments and capital security. If you get
capital access you will also have access to your savings without any penalties and
get more tax planning advantages compared to deposit accounts for higher taxpayers.

The capital access may be a good idea for small or medium-sized firms. Although
their role is often seen as possible sources of innovation they disappear fast from
the market because of the climates existing in today’s business world and also poor
access to inputs. The missing part these companies need to develop is usually capital
access. But new options appear for these small and mid-size companies and their
financial needs, one of which being creative applications of venture capital investing


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Buying A New Business Phone System

Acquiring a
New Business Phone System
is a very important step in the evolution
of any business. Finding the right one for you makes the difference between either
creating a better link between the clients and the business or generating confusion
among all those, be they customers or employees, which uses it or has to interact
with the New Business Phone System.

There is no perfect New Business Phone System; rather you have to know how to choose
one that will best suit your company’s needs. Due to the fact that phones are still
the fastest way that you can interact with your customers and your customers can
interact with you, the New Business Phone System is one of your company’s most important

The flexibility of your New Business Phone System is crucial. It has to be able
to sort the important calls of your business partners, which will be routed to the
senior management offices from customer calls that are routed to the technical support
department. Also you don’t want that your New Business Phone System putting your
clients on hold for interminable periods of time, disconnecting them or giving them
a long list of chaotic automated options to choose from. This is catalogued as poor
business management and poor customer support.

In order to avoid situations potentially damaging to your company’s reputation,
there are some factors that you need to take into account when installing the New
Business Phone System. First of all, the purchase should match the capacity of your
company; you don’t want your employees running around from one office to another
looking for a phone to use, but you don’t want to own a much higher number of phones
then you have employees.

Make note of the potential growth of your business when acquiring the New Business
Phone System and choose the company that is most likely to be able to help you upgrade
it. Upgrading the New Business Phone System is less expensive than completely changing
it once it becomes obsolete or when it just doesn’t meet your needs any longer.

If you already own phone accessories such as handsets, headsets or conference equipment,
it’s probably a good idea to find New Business Phone System compatible with them.
Otherwise you will have to purchase new accessories and that is another extra acquisition
you don’t really need. Keep in mind that if the accessories your own are obsolete
or they are not needed anymore, this factor looses its importance.

Also, an important factor to take into account is what are the options and features
does your New Business Phone System need to incorporate, according to your type
of business. A call center company, for example, is more likely to purchase a more
sophisticated type of New Business Phone System, whereas a small software development
company has no use for all the options it would include.

The tips on choosing the perfect New Business Phone System for you may seem expensive,
but they are the key to understanding what is your company really looking for when
purchasing a New Business Phone System and making the right decision.


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New Business Office – Own Or Lease

New business owners have a lot of decisions to make. One of the decisions that they
need to make early on is whether to buy or lease office space.

Buying space for an office complex puts the new business owner in another business
as well- real estate. If the value of the property does very well then the New business owner could sell the property for a profit later on.

However, on the other hand, New business owners may invest more on their property
then they can actually afford to. This will result in a drain on the financial resources
of the new company. Many small businesses operating one a small and tight budget
prefer to lease their space instead of buying office space.

Another factor that new business owners need to consider when buying office property
is the tax that they need to pay on it. New business owners can write off repairs
immediately, but improvements to commercial real estate have to be deducted over
39 years. Depreciation on commercial buildings also is taken over 39 years. On the
other hand, New business owners who rent out office space can deduct the full amount
that they pay on rent as a tax deduction.

Some attorneys may recommend placing a commercial property inside an entity such
as a limited liability company (LLC). By doing this, New business owners can also
lease out portions of their commercial property to other businesses.

A lot new business owners operating on a tight budget prefer to lease properties
for office space. This is because the new business owners can avoid making large
upfront investment required with a purchase.

Leasing is also attractive option for new business owners who are not really sure
about how much space they will require and do not want the responsibility of owning
a commercial property.

Owning a commercial property is not so much for new business owners as it is for
established businesses who want to be in one location for several years and who
have the financial resources to take on a significant real estate investment. Of
course, a final decision between leasing and owning a commercial property depends
on the plans of the new business owner.


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Setting Up A Business Even Without A Good Credit Score

Having good credit reporting does definitely improve new business owner’s chances
of getting capital resources for the
new business
. However, not every one has good
credit history. Yet they manage to start a new business.

with a bad credit score will need to look beyond banks for startup
funding for the new business. Most banks including community banks are very particular
about the credit score of an entrepreneur and are extremely reluctant to invest
in an individual who has a poor credit history.

However, there are other sources of funding that an entrepreneur can look toward
for the capital resources. The first choice is family and friends. Angel investors
are also an option for an entrepreneur with poor credit rating. The most important
part of a business proposal for an angel investor is the uniqueness of the plan.

An entrepreneur who is planning to open a new business but knows that his/her credit
history is poor should spend a few months on trying to improve the credit score.
One way to do this for an
is by paying off the remaining payments in
time. This will go a long way in improving credit history.

An entrepreneur with a poor credit rating should also keep track of credit history
provided by the three different credit rating agencies. Most business analysts recommend
that an
entrepreneur fix
one date every month for scrutinizing information that
appears on the credit report. This will help the entrepreneur detect any problems
in the credit report early on.

New business owners
should also differentiate their business credit from their personal
credit. While large banks focus on the entrepreneur’s personal credit score when
it comes to deciding on whether to award startup capital for the new business proposal,
smaller community lenders and business-friendly banks focus on a combination of
personal credit score as well as business credit score.

An individual’s personal credit score is determined by several factors, including
the outstanding debt balance on personal credit cards, the number of open lines
of credit accounts, bill payment history and late payment history. The business
credit score is determined by similar factors as well as linked to the tax ID. A
business entrepreneur needs to get both these credit scores in order before approaching
banks for seed funding.

An entrepreneur with poor credit history should work towards building a better credit
report. This will help improve the entrepreneur’s access to funds as well lower
rates of interest on the seed capital.


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Small Businesses Pushing Ahead

The number of sustainable business networks continues to grow in popularity. More
than 50 per cent of these small businesses are finding funding through the Small
Business Administration.

Small Business Administration
, which is a federal program, is the largest provider
of startup capital for small businesses. It has been so since the inception of the
SBA in the 1950s.

According to new reports, more than 25.85 million new businesses opened up in 2005.
More new businesses were started in 2005 than were closed, resulting in an estimated
5.99 million firms with employees and 19.86 million sole proprietorships.

Since its inception in 1953, the SBA has provided startup capital for several thousand
small businesses. In fact, SBA has financed more than 219,000 business owners with
loans of more than $ 45 billion. The role of the SBA in providing startup capital
to small companies has increased in the last decade. In the past 10 years, SBA has
provided startup capital for almost 435,000 small businesses with more than $94.6
billion in loans. SBA is probably a leading source of funding for small businesses.
Entrepreneurs applying to the SBA for seed funding need to meet some minimum criteria.
Business owners will need to furnish details of business profile, loan request amount,
collateral details, business financial statements and personal financial statements.

The report also revealed the fact that women’s business network are growing. Women
ownership of new businesses increased 19.8 percent between 1997 and 2002. In 2002,
Women owned 6.5 million businesses, approximately 28.2 percent of all non-farm U.S.

More than 14 percent of women-owned firms were employers, employing 7.1 million
workers and accounting for $173.7 billion in annual payroll in 2002.

Analysts suggest that
apply for a pre-qualified loan for their startup
capital from the SBA. Pre qualified financing uses intermediary organizations to
assist prospective borrowers in developing viable loan application packages and
securing loans.


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