Show Me The Money!! (Financing for Small Businesses)

Nothing is more important to an entrepreneur or a small business owner than financing/capital. As many small business owners quickly realize that more money is always needed than was initially anticipated, the search for third party sources of cash begins.


Luckily, there are a multitude of financial resources available to give or loan money, teach you how to prudently use money and how to generate money.


The Community Development Financial Institutions (CDFI)  is one of the best vehicles that supports small businesses and entrepreneurs that have community based initiatives.  CDFIs is a funding source which consists of private-sector organizations from a myriad of private and public sources (http://cdfi.org/index.php?page=info-1d). According to the CDFI website, the organization financially assists small businesses through the private sector contributors such as "Corporations, individuals, religious institutions, and private foundations. Depository CDFIs, like community development banks and community development credit unions, get capital from customers and non-member depositors." The biggest source of CDFIs funding is through a federal CDFI fund, which makes funding available through capital grants, equity investments, and awards to fund technical assistance and assistance and organizational capacity-building. To be eligible for an FA award, a CDFI must be certified by the CDFI Fund before it applies for the award. Prospective applicants that are not yet certified must submit a separate certification application to be considered for FA during a funding round. Both certified and non-certified CDFIs are eligible to apply for TA awards. However, non-certified organizations must be able to become certified within two years after receiving a TA award.

Touting themselves as the "voice for microenterprise", Association for Enterprise Opportunity (AEO) is instrumental in assisting small businesses via "microlenders, small business development organizations, non-profit lending organizations, and educational institutions dedicated to microenterprise." Some of their contributors are Capital One, Citibank and the W.K. Kellogg Foundation. 



"AEO presents showcases to highlight successful businesses. It is an opportunity to demonstrate the importance of small businesses across the country, as well as the business support organizations that help them thrive.The showcase allows entrepreneurs to promote their products and services, develop relationships with other business owners, and share information on the resources that have been instrumental to the startup and growth of their companies." (AEO, http://www.aeoworks.org/index.php/site/page/category/aeo500_business_owners/)


The CDFI and AEO are just two resource vehicles for small businesses and entrepreneurs. Without financing, small businesses and their ancillary services will fail. All small businesses and entrepreneurs require these pertinent resources and information.

Well, what does this mean...? These organizations are showing start-ups the money!!


Community Development Financial Institutions


Association for Enterprise Opportunity