The State of Texas and the Houston metropolitan area experience intense business competition every day. Therefore, a small business should seize every financing advantage that comes its way.
Raising capital for improvements, upgrades or expansions is often challenging, but opportunities do exist for those who know where to look.
Small business grants
The Chamber of Commerce provides some general information on small business grants for 2020. It describes a grant as money given to a business that does not require a payback. Conditions on how the money is spent often comes with the payout. Government grants typically come with more restrictions and often seek to encourage positive outcomes in a community. Applying for a grant often involves a fair amount of work, and grants are highly competitive. Due to the specific requirements of a grant proposal, some companies hire the services of a professional grant writer. The chance of success for a grant application is higher if the company seeking the money aligns with the vision of the entity offering the money.
Small business loans
U.S. News & World Report provides information on the best small business loans of 2020. Unlike a grant, a loan requires repayment, but it might come with fewer restrictions. Loans consist of complicated factors such as fees, factor rates, closing costs, eligibility requirements and terms. Lenders for small business capital include banks and credit unions, alternative lenders such as private equity firms, direct lenders and peer-to-peer lenders. The process of applying for a business loans often includes writing a detailed business plan that serves in part to assure the lender your company is credit worthy. Obtaining capital at favorable rates and terms puts a small business at a competitive advantage.
