Financial Resources
All funding applications require a resume for (also known as) a business plan. A business plan is a plan for how you intend to do business and your roadmap for success. The DiversePhilly network has great resources to getting your business plan done. Write it and then use your network ( Whole Unit Artistic Development Inc.) to get unbiased opinion and polished look and feel. The business plan competitions are great motivators to completing your plan!
Grants
1) Minority Business Plan competition sponsored by The Enterprise Center. The competitions in which 2 DiversePhilly businesses (Soles, a shoe experience and Tea Country) won in 2007 are open to for-profit businesses in which at least 41% of the beneficial ownership, interest and control are held by a minority or minorities. In the case of corporations, minorities must hold at least 51% of voting interest. Businesses must also be owned and operated by an entrepreneur who is a resident of Pennsylvania, at least 18 years old, and of African-American, Puerto Rican, Spanish-speaking American, Aleut, Asian-Pacific American, Asian Indian, Native American, or Eskimo heritage. Read more: www.theenterprisecenter.com
2) The Enterprising Woman Business Plan Competition sponsored by The Business Center. The Competition provides women with the tools they need to launch, improve, and grow their businesses. Smaller to mid-sized businesses, earning less than $250,000 in annual revenue, are invited to compete for up to $25,000 in cash and prizes to be awarded as part of the Business Plan Competition. Read more : www.thebizctr.com
3) Matching Loan Grant - Grants of between $1,000 and $20,000 are available to current merchants in several forms, including Business Loan matches from accredited government programs and banks. Loan matches may not be used to pay off debts or existing loans or a loan to be obtained. We recommend starting the loan application simultaneously to the application to The Merchants Fund. Read more: www.merchantsfund.org
Non-Traditional Loans
1) Micro Loans - Entrepreneurs who become members of a Community Capital Works chartered peer group are eligible to apply for loans graduating in steps from $500 to $5,000. Individual members make loan requests through their peer group and the group as a whole decides whether or not to approve a loan. The borrower is not required to put up collateral or reveal their credit history. If approved by the peer group, Philadelphia Development Partnership CDFI makes the loan to the individual entrepreneur. The ability of each peer group member to apply for further loans is conditioned by their repayment record and that of their other group members. Read more at www.pdp-inc.org
2) Strategic Growth Loan Fund - Direct Loans of up to $500 to $2,500. Fees for the Loan: Application Fee $50 (waived for DiversePhilly Members) Borrower Requirements - For most products - credit need not be perfect but must be either in repair or repairable (must have means to put a credit repair plan into action - pull from myfico.com). 2 years tax returns (2007, 2008), business plan (see sample from The Enterprise Center Capital Corp.) and 2 letters of recommendation
3) Medium Loans - WORC offers a few loan products for the low-income borrower: Direct Loans of up to $500 to $2,500. Small Business Loans of up to $10,000 (for existing businesses only) Bank Guarantee Loan up to $10,000 ($5,000 for start-up businesses) - 30% guarantee offered by WORC - direct referral to banks and other loan funds. Fees for the Direct Loan, Small Business Loan and Bank Guarantee Loan: Application Fee $25.00, Closing Fee $25.00. Borrower Requirements - For most products - credit need not be perfect but must be either in repair or repairable (must have means to put a credit repair plan into action). Read More: www.worc-pa.com
4) Large Loans - Direct loans are available from $25,000 to $200,000 at below market interest rates with Philadelphia Commercial Development Corporation generally participating up to a maximum of 50% of the project's total cost. To qualify for this program, an applicant must have the ability to contribute 10% to 25% of the total project cost, be creditworthy, have sufficient collateral, and have appropriate business experience. Finally, the project being financed must demonstrate that it will benefit low-to-moderate income persons by either creating low-to-moderate income jobs or by providing goods and services to a low-to-moderate income area. Read More: www.philadelphiacommercial.org
Equity/Debt
1) Creative Economy Investment Fund welcomes investment proposals from for-profit creative economy businesses based in the Greater Philadelphia Region. The for-profit creative economy incorporates many industries including but not limited to: architecture, interior and industrial design, engineering, planning, marketing, graphic arts, software development, information technology, digital deisgn, fashion design, music production, film and video production, design and merchandising, product design, multimedia design, photography, and communications. Read more: www.innovationphiladelphia.com
2) The Greater Philadelphia Urban Affairs Coalition has developed The Business Builder Loan Program. If your business is located in a minority or lower income area in Philadelphia and has been in operation for at least six month, the Business Builder Loan Program may be able to provide up to $50,000 to help your business grow. For more information, visit www.gpuac.org or call 215.851.1740