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Early stage companies have numerous
resources to finance their business, from government funding to
regional matching grants to local investment firms. Below, you will
find quick glimpses into the finance world as well as helpful links
to guide you.
Government
Funding
Small Business Innovation Research (SBIR) and Small
Business Technology Transfer (STTR) – three phased
federal funding programs specifically for small businesses to
perform R&D needed by the participating agencies.
www.sbir.gov
www.zyn.com/sbir
www.sba.gov/sbir
www.sbir.us
Enterprise Florida SBIR/STTR Phase 0 Grant
Program – provides grants of up to $3000 to support
preparation of a Phase I SBIR or STTR proposal.
www.eflorida.com/phase0
SBA 504 Loan Program – U.S. Small
Business Administration (SBA) approved loan program designed to
help owners of small and mid-size businesses purchase commercial
real estate. (Note: Over 98% of companies in Florida are viewed as
“small businesses” by the SBA.) A major benefit of the
SBA 504 Loan is that it finances as much as 90% of a
borrower’s “total project cost”, including land,
acquisition/construction, equipment, soft costs and closing costs.
This, combined with longer amortizations (up to 30 years) and
long-term fixed interest rates, allows business owners to enjoy the
advantages of owning commercial property with minimal impact on
cash flow.
Metro Orlando-headquartered Mercantile Commercial Capital, LLC
(MCC) is the only company nationwide that exclusively focuses on
providing SBA 504 loans for business owners to finance commercial
property. Extending 90% loan-to-cost commercial real estate
financing with less money down and longer fixed rate terms, this
program offers owners of small and mid-sized businesses increased
ability to purchase commercial real estate instead of leasing,
while preserving capital and maximizing cash flow. The EDC is
available to facilitate meetings with MCC.
www.504experts.com
Other Government Grants – come from
local, state and federal agencies that spend billions of dollars
each year for procurement, research and consultant services.
Startup companies may wish to partners with a larger company and
serve as a subcontractor or pursue small business set aside
contract/grant opportunities.
www.grants.gov
www.governmentgrants.com
www.cfda.gov
Matching
Grants
Florida High Tech Corridor
Council – provides matching grants to companies
located in the 23-county Corridor region; grants support
industry-university research projects and SBIR/STTR awards in which
one of the three participating universities is a partner
(University of Florida, University of Central Florida, University
of South Florida).
www.floridahightech.com
Strategic
Partnerships
Strategic Partnerships or
Alliance – two entities working together to achieve
a common goal. For an emerging company, these relationships can
provide capital as well as a customer base, marketing and sales
support and additional technical talent. For the established
company, the start-up partner provides new technology, new talent
and speed.
www.strategic-alliances.org
www.1000ventures.com
www.smallbusinessnotes.com/operating/leadership/strategicalliances.html
Equity
Capital
Angel Investors – An angel investor
generally wants less control of your company and a slower return on
investment, however the criteria for investment are likely to be
similar. Angel investor groups are great sources of private capital
and frequently invest angel money into new companies.
www.floridaangel.com
www.gatheringofangels.com
www.theangeljournal.com
www.vcfodder.com
Seed Stage Venture Capital – usually
involves capital provided to prove a concept and support product
development. Less the 8% of all VC funding in the past 23 years has
been seed stage.
Start-up Financing – funding provided for
product development and initial marketing (which means the company
has key management, market research and a business plan in
place).
www.flvencap.org
www.nvca.org
www.nasvf.org
www.americanventuremagazine.com
www.garage.com
www.1000ventures.com
Small Business Investment Companies –
licensed by the U.S. Small Business Administration, these privately
owned and managed investment firms combine their own capital with
funds borrowed from the government and invest as venture capital in
small businesses.
Florida First Capital Finance Corporation (FFCFC) has been
established to assist companies in the packaging of SBA 504, SBA
7A, Recycling Loans and Energy Loans. The EDC is available to
facilitate meetings with FFCFC and the company.
Two ‘Fs’: Friends & Family
– raising money from people who know and love you or who you
convince to believe in you is also an option. Typically you can
raise $25k-$250k.
www.entrepreneur.com
Industrial
Development Revenue Bonds (IDRB)
IDRB financing is a
federal program, administered by the state at the local level. The
bonds can be used for the purpose of financing or refinancing
expansion of two types of companies: manufacturers and non-profit
organizations. Bond financing can provide up to 100 percent funding
of a qualified project within federally specified dollar limits.
IDRBs are beneficial to qualified companies as they are longer
term and available at a lower interest rate than most commercial
loans. The interest on the bonds has preferable income tax
treatment by the IRS and those savings are passed along to the
user. Like commercial loans, IDRB approval is related to the
company’s credit worthiness.
Do We Qualify?
Existing manufacturers and not-for-profit corporations are eligible
to apply. Applicants need to demonstrate that IDRB financing would
fund business expansion projects within the Metro Orlando region.
Projects must be economically beneficial to the county, provide
gainful employment, and protect the environment, as well as the
general welfare and public health of the state of Florida.
Commercial and industrial applicants must also demonstrate that at
least 75% of the space/facility built using IDRB funds would be
used for core manufacturing. It is recommended that applicants
consult with bond counsel to determine eligibility.
How do we apply?
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