Fund It

Crowdfunding

Raising Capital Outside the Box

The growing popularity of crowdfunding as a way to underwrite small business growth was triggered by passage of the federal JOBS (short for Jumpstart Our Business Startups) Act in 2012. In a nutshell, this act allows private companies to solicit investors on the Web and opens the door for anyone, accredited and unaccredited investors alike, to become shareholders. The SEC is expected to issue formal rules for exactly how investment crowdfunding will work in October 2015. In the meantime, however, several platforms are already up and running online.

Should you consider investment crowdfunding? Maybe, maybe not. But at the very least, you should investigate the possibility and take a look at sites like Crowdfunder, EquityNet and AngelList for more information.

Grants

Money Not Easily Obtained

Little if any federal grant money is available to launch a for-profit small business. However, some small businesses engaged in scientific research and development (R&D) may qualify for federal grants under the Small Business Innovation Research (SBIR) and the Small Business Technology Transfer (STTR) programs if their projects meet federal R&D objectives and have high potential for commercialization. To learn more about these programs, visit www.SBIR.gov.

Some business grants may be available through state and local programs, nonprofit organizations or other groups. For example, states may provide grants for such wide-ranging programs as expanding child care centers, creating energy efficient technology and developing marketing campaigns for tourism. Be aware, however, that grants do not necessarily represent “free” money; many require the recipient to match funds or combine the grant with other forms of financing such as a commercial loan. For information about grants available in Florida, visit www.florida.grantwatch.com.

Tags: Florida Small Business, Growing Your Business