Traditional Funding Sources
Loved ones, friends, and friends-of-friends are the best place to start your search for capital. About three-quarters of start-up capital for the nation's small businesses is provided from family and friends or business owners themselves.
Small Business Investment Corporations
Small business investment companies (SBICs) supply equity capital, long-term loans, and management assistance to qualifying small businesses. They are privately owned and operated, and use their own capital as well as funds borrowed from the US Small Business Administration. While they are profit-seeking enterprises, SBICs select small businesses to be financed within the rules and regulations set by the SBA - therefore, only firms defined by the SBA as "small businesses" are eligible for SBIC financing.