US startups searching for funds shouldn’t overlook financing from the federal government – TechCrunch

Whereas money from Uncle Sam is probably not high of thoughts for startups, SBA loans can present low-cost capital

What’s the distinction between a startup and a small enterprise? Semantics, largely. As many startups discover themselves struggling to boost funds from enterprise capitalists as financing continues to decline this 12 months, the U.S. Small Enterprise Administration (SBA) might show to be a strong useful resource for capital, even when startups historically search for funds from different sources.

Chris Hurn, the founder and CEO of Fountainhead, is aware of the potential advantages of taking up authorities financing. Fountainhead is a nonbank lender of government-guaranteed loans. Hurn mentioned the present era of entrepreneurs is laser-focused on elevating equity-based funding from backers like enterprise capital corporations — however that isn’t their solely choice, particularly as fairness will get costlier in present market situations.

“The issue is that enterprise homeowners oftentimes overlook fairly available debt capital,” Hurn informed TechCrunch. “They don’t have to surrender any fairness. [SBA loans] can oftentimes be the precise stepping stone they should get to the following stage.”

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