How to Find Funding in a Bad Economy : Under30CEO How to Find Funding in a Bad Economy : Under30CEO
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How to Find Funding in a Bad Economy

| November 10, 2011 | 6 Comments

A recent article on MSN’s Business on Main shows that small business lending is still down despite efforts to loosen up the markets. Outstanding loans to small businesses totaled $609 billion at the end of 2010, according to a report from the U.S. Small Business Administration’s Office of Advocacy, down from the pre-recession peak of $712 billion in 2008. Banks had been cutting back on loans but it shows that small business loans were cut the most with loans to small businesses dropping another $15 billion early in 2011.

While the big banks may be cautious to hand out loans that doesn’t mean that small businesses aren’t looking for money to grow and expand their operations. It’s a sticky situation because businesses require cash to grow and in turn create more jobs that help the economy. So how do you get that needed money when the banks aren’t lending? Here are some other places to look for it…

1. Community banks

2. Leverage your social media network

3. Apply for a microloan

4. Join a credit union

5. Hire a loan hunter

6. Look for lender neighbors

Learn about the details of each option on the full article on MSN’s Business on Main

It may be awhile before the big banks start lending again but don’t think you can’t fund the funds you need to grow your business. It might just take a little extra work.

This article is brought to you by MSN’s Business on Main

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Category: Funding, Startup Advice

  • http://www.online-business-virtual-assistant.com/ Virtual Business Assistant

    Great tips and thanks for providing some real sources where we can raise fund for business…

  • http://twitter.com/CommKr8veWriter Emelina Anne Minero

    Depending on your project, there are a lot of crowdfunding sites like Kickstarter, PledgeMusic and others that can be very beneficial for raising money for specific projects.

  • http://www.i95dev.com Henry Louis

    Oh! It is really very interesting and I hope it would be more helpful the people those who want to collect the funds in the bad economy. Good informative post.

  • FranchiseClique.com

    If you are interested in starting a business, but aren’t sure how you’ll find funding, it could also be worth looking into franchising opportunities. Many franchisers offer financial payment plans or already have established connections with lenders… not to mention a reputable brand presence and a proven business model.

  • http://twitter.com/BoiseComputing Boise Computing

    SBA loans seem like a better way to go, then directly through the bank first.

  • http://www.seedups.com Connor Doherty

    Following on from Henry’s post, there are a few more sites that are starting to concentrate on more business specific projects, such as Seedups, who are aimed at tech-companies, crowdcube have a model in the UK based along the lines of Kickstarter and Seedmatch from Germany. This European led move is becoming more of an option for American businesses, especially if the rules about investments are relaxed.