Raising Money

Getting funding (also called capital) is a big challenge for anybody who tries to start up a business. You need to make sure you'll be able to raise money, because without it, you won't be able to get your business going.

The most common way to raise money for a new business is with loans, which means you'll have to pay the money back, plus any interest. However, there are some opportunities for people with disabilities to get money that you don't have to pay back.

If you get benefits, you'll also need to make sure that saving money for your business won't cause you to lose the cash or health benefits you need. Read more about keeping your benefits while starting a business.

Getting Loans

If you need money to start your business, your first step will probably be to try to get a small business loan from your bank or credit union. However, it can be very hard to get small business loans, especially if you're just starting out and if you don't have much money or assets. If you can't get a traditional small business loan, some other options are:

• Microcredit loans
• Loans from Community Development Financial Institutions (CDFIs)
• SBA-guaranteed loans
• Online marketplace lending
• Georgia's Alternative Financing Program for assistive technology

Before you try to get a loan on your own, you can also ask for help from the University of Georgia Small Business Development Center (SBDC). The SBDC has a team of advisors who help small businesses that don't have access to traditional loans. These advisors can help you with financial planning and applying for loans, and they also host online and in-person workshops. Learn more about how the SBDC can help you get loans.

Microcredit Loans

Microcredit loans are generally smaller than normal business loans from a bank. They are usually $10,000 or less, but can be up to $50,000. Most microcredit loans are provided by nonprofit organizations that specialize in giving loans to people with low income. It is usually easier to qualify for these loans than it is for bank loans. Microcredit programs may also offer training on how to operate your business and manage your money.

Some nonprofit microfinance organizations in Georgia and across the U.S. are:

• The Synergies SEED Fund for entrepreneurs with disabilities
• The Georgia Micro Enterprise Network (GMEN), a network of training programs and microfinance lenders
• Accion Opportunity Fund, which offers loans and other resources to women and people of color (you must have been in business for at least 12 months)

Community Development Financial Institutions (CDFIs)

You may also be able to get a loan from a Community Development Financial Institution (CDFI). CDFIs provide loans and business development resources to people who can't get traditional loans. The CDFIs that do small business lending in Georgia are:

• Access to Capital for Entrepreneurs (ACE)
  
• Albany Community Together, Inc. (ACT!)
• Georgia Cities Foundation
• NewTown Macon
• Small Business Assistance Corporation (SBAC)
• Southwest Georgia United (SWGAU)

The state of Georgia has loan programs that help get CDFI loans for businesses owned by people with low income and people from other disadvantaged groups. You can apply for a loan directly from a CDFI, or you can apply for state lending assistance. Learn more about applying for state lending assistance.

SBA Loans

If you are having a hard time getting a traditional business loan, you can look into SBA-guaranteed loans. When the bank thinks you are too risky to lend money to, the Small Business Administration (SBA) can agree to partner with the bank on the loan. SBA loans can be microloans or larger loans. Learn more about SBA-guaranteed loans.

Online Marketplace Lending or Alternative Lending

There are many online lending platforms or organizations that may give you a loan without involving a traditional bank. The advantage of these platforms is that it's easier to get a loan than it is from a traditional bank. However, these loans can be much more expensive than bank loans. They have higher interest rates than traditional banks, and there may be an extra fee (called an origination fee) for getting the loan. If you want to get a loan from one of these platforms, make sure you do research to find the loan with the lowest interest rate and fee for your loan amount and credit score.

Some lending platforms are:

• Upstart
• Prosper
• LendingClub
• Georgia Small Business Capital Alternative Lending
• Peach State Solutions

Assistive Technology Loans

Georgia's Alternative Financing Program, also known as the CreditAble program, lets people with disabilities borrow money to buy assistive technology, adaptive equipment, and related services. These loans are easier to get than traditional loans (for example, a low credit score might not disqualify you from getting a loan) and the interest rates are lower. Learn more about the Alternative Financing Program.

Money You Don't Have to Pay Back

Even better than getting a loan is finding people or organizations who will give you money and not expect to be paid back. Some options are:

• The Georgia Vocational Rehabilitation Agency (GVRA)
• Investors
• Crowdsourcing websites
• Friends and family

Vocational Rehabilitation

The Georgia Vocational Rehabilitation Agency (GVRA) may help you with the startup costs of a small business. To take advantage of this, you must be eligible for vocational rehabilitation services and must, with the help of your vocational counselor, develop a business plan. Depending on your business idea and plan, you can get up to $10,000 in funding, which you don't have to pay back. You have to use this money for startup costs in the first six months of your business.

If you work with a vocational counselor with a work goal of self-employment, you might also get training, help with your business plan, and adaptive technology and equipment, in addition to funding for your startup costs. The expectation is that your small business will eventually be your primary source of income.

Note: Your chance of getting this type of funding can depend on your business idea, your vocational rehabilitation counselor, and the office where you get services. It is not always available.

Business Enterprise Program

If you are blind or visually impaired, you may be eligible for the Business Enterprise Program, which helps people become independent business owners in the food service industry. The Business Enterprise Program is run by the Georgia Vocational Rehabilitation Agency (GVRA). Learn more about the Business Enterprise Program.

Investors

Investors are people or organizations who will put money into your business, but don't expect to be paid back in cash. Instead, they will want to own a small portion of your company (so that when you start making money, a certain percentage of your profits will go to your investor) and might even want some control over business decisions. An investor is not just donating money to you—they are becoming your partner and taking on part of the financial risk of your business. The advantage of having an investor is that if your business fails, you don't have to pay back any money that the investor put in. However, the disadvantage is that your company is not owned completely by you anymore.

To look for potential investors, you can:

• Ask the organization you are working with on your business plan, or
• Ask your nonprofit microfinance organization if they know of investors.

Crowdfunding Websites

Crowdfunding websites let you raise money without having to repay it. Instead of getting a large amount of money from one person, bank, or organization, crowdfunding lets you get smaller amounts of money from many people, which can add up quickly. However, crowdfunding can take a lot of work, especially marketing and social media outreach, to be successful. You also have to make sure your funding goal will be enough money to get your business started. Use your business plan to help create your crowdfunding campaign, come up with a funding goal, and convince people to donate.

Three of the biggest crowdfunding platforms are GoFundMe, Kickstarter, and Indiegogo:

• GoFundMe is used for raising money for personal causes. People donate money out of pure generosity and don't expect to be paid back. You set a funding goal at the beginning of your GoFundMe campaign and get to keep any money you raise, even if you don't reach your goal. (GoFundMe does take a percentage of the money you raise as a fee.)
• Kickstarter is a little different from GoFundMe because the people who donate money expect a "reward" in return. As part of your campaign, you promise people that if you reach your goal, you will start your business and your donors will get something special. Rewards can be small and even free to give. You might let a donor be the first to buy your product, name an item after a donor, or give out a piece of merchandise. If your campaign reaches its funding goal, you get to keep all the money you've raised (although Kickstarter takes a percentage fee), and you are expected to follow through on your business and rewards. If you don't reach your goal, you don't get any money that people have donated and everyone gets their money back. Kickstarter works best for businesses in creative industries that are selling a physical product, not a service.
• Indiegogo is similar to Kickstarter, but offers a little more flexibility. All kinds of projects can be accepted by the platform, and you may be able to keep the money you raise even if you don't reach your funding goal, depending on the plan you choose. However, fees can be higher than other platforms.

Another type of crowdfunding is equity crowdfunding. Instead of trying to get many small donations, you'll try to get many small investments. Your investors don't expect to be paid back in cash, but they are buying a share of your company. That means if your business becomes profitable, part of the profits will go to your investors. Some of the most popular equity crowdfunding platforms are:

• Wefunder
• StartEngine
• Republic

Like other crowdfunding platforms, these platforms will take a percentage of the money you raise and might charge you a subscription fee to host your campaign.

Friends and Family

If you have a great idea for a business and your friends and family believe you can succeed, they may want to give you money to put into your business. Friends and family are often the people who know you the best, trust your judgement, and are willing to take a chance on you, even when banks or other programs don't work out.