Some Alternative Funding Sources for Business Plans

There are websites out there to find sources for funding for business plans of all shapes and sizes.  Whether your business plan is for a hip new product, the hottest new intellectual property, or just opening up a restaurant, there are a bunch of websites out there that can help you secure the vital funding you need to turn your business plan into a reality.  I will highlight two of the many that are available.

The first is the First Nations Development Institute, a Native American organization, which is working to restore Native American control and gain new assets to ensure the long-term vitality of the Native American people.  They fund businesses that are located on their reservations or in rural Native communities.  They will fund businesses linked to the provision of a product of service for their communities.  They award grants through their Eagle Staff Fund (ESF), which launched in 1993 and has awarded 200 grants totaling 8.6 million dollars since 1994.  They offer seed, start up, and working capital grants.  If you can launch your business plan on a Native American reservation, or have a product or service that could benefit them, the First Nations Development Institute may be for you.  Check out their website for even more information on the programs and services they offer.

The second is the U.S. Economic Development Administration (EDA), which is a government organization whose mission is “to lead the federal economic development agenda by promoting competitiveness and preparing American regions for growth and success in the worldwide economy.”  The website has a lot of great information on federal funding opportunities including links to state and other local development agencies.  The EDA has investment priorities in collaborative regional innovation, public/private partnerships, national strategic opportunities, global competitiveness, environmental development, and economically distressed and underserved communities.  The EDA, in its simplest form, partners with communities to foster and create new jobs and local business.  If you think the EDA may be right for your business, then check out the grant process page for details on how to get the ball rolling.  This process is great because the EDA provides formal feedback on the grant’s technical and competitive merits and/or deficiencies within 15 business days.  This feedback can invaluable in improving and refining your business plan.

These are just two of the tons of alternative funding source websites out there.  The advantage is, you can gain some excellent funding but your business may not always qualify.  Some other alternative funding sources are CFED, OWEESTA, the Association for Enterprise Opportunity, the Opportunity Finance Network, the Coalition of Community Development Financial Institutions, the Community Development Venture Capital Alliance (CDVCA), the National Community Investment Fund, and the National Federation of Community Development Credit Unions to name a few more.  There is a lot of money out there waiting to be invested by investors.  Finding the right investor to fund your particular business plan is the tricky part.  If you can launch your business by yourself without investors, it is best because you maintain control of your business and keep all profits.  But if you do need to find an investor, it is safe to assume there is more money out there than good ideas.