Knowledge Base

Q:

Where can I find funding for my business?

A:

Foundations typically fund nonprofit public charities, as defined in Section 501(c)(3) of the Internal Revenue Code. These are organizations whose purposes are charitable, educational, scientific, religious, literary, or cultural. The small number of foundations that give to individuals typically do so to help pay for educational expenses or support artistic or research projects.

By and large, foundations do not make grants to for-profit enterprises. If you are seeking funds to start a for-profit business, please consult the resources below for more information. You might also consult the business section of your local public library, or economic development agencies in your city, county, or state.

Social enterprises

If your for-profit business has a strong social mission, it might be considered a social enterprise. Social enterprise, also known as social entrepreneurship, broadly encompasses ventures of nonprofits, civic-minded individuals, and for-profit businesses that can yield both financial and social returns.

A small but growing number of foundations may provide program-related investments (PRIs) to social enterprises as well as nonprofits. PRIs are low-interest loans that a foundation can give to organizations or projects that match the funder’s giving interests.

See also our related Knowledge Base articles:

- What is a program-related investment? 
- What is social enterprise? 
- Where can I find information about government grants?

More articles about for-profit organizations»

Selected resources below may also help.

Web Sites

* indicates staff pick

• * Loans for Small Businesses | ACCION East

  ACCION East offers business loans up to $50,000 and financial education throughout the U.S. and specializes in working with small business owners who cannot borrow from the bank due to business type, a short length of time in business, or an insufficient credit history.

• FedBizOpps.gov

  A searchable database of federal government contracting and procurement opportunities over $25,000.

• * Small Business Administration (SBA)

  Search the site by keyword, or browse by topics. Site includes a Small Business Planner, financial assistance programs, publications, business plan outlines, and more. SBA also has offices in each state.

• * My Own Business: A Free Internet Course on Starting a Business

  This 12-session course is intended for both start-up and already operating businesses. The site is fully interactive with video clips, quizzes, feedback, and a tool to create your own business plan.

• Office of Women's Business Development | SBA

  This office of the SBA oversees a network of Women's Business Centers (WBCs) throughout the United States and its territories. Through the management and technical assistance provided by the WBCs, entrepreneurs, especially women who are economically or s

• OPEN: The Small Business Network

  Practical advice about financing sources for new businesses sponsored by the American Express Company.

• Financing: Where to Find It | Inc. Magazine

  Offers an overview of finance options for entrepreneurs including angel investors, venture capital, government programs, bank loans, private equity financing, microloans, and direct strategic partnerships.

• Entrepreneurship.org

  This web site sponsored by the Ewing Marion Kauffman Foundation provides resources covering many topics of interest to entrepreneurs, including starting and growing a business, and supporting entrepreneurship.

• * SCORE, Counselors to America's Small Business

  A national association that can give you a personal business coach to help you with every step of your business. SCORE has offices in each state and 24/7 online advisors.

• Small Business Development Center (SBDC) Locator | SBA

  SBDCs offer one-stop assistance to individuals and small businesses by providing a wide variety of information and guidance via its network of more than 1100 service locations in the U.S. and its territories.

• Small Business Innovation Research (SBIR), Small Business Technology Transfer (STTR)

  Two competitive programs administered by the U.S. Small Business Administration to ensure that the nation's small, high-tech, innovative businesses are a significant part of the federal government's research and development efforts.

• Estimating Startup Costs for a New Business | StartupNation

  Confounded over how much money you'll require for your startup business? Well, don't fret. There's an easy approach to breaking this mystery down and creating a clear picture of the funds that your startup business will need.

• Steps in Starting Your Own Business | The Riley Guide

  This area contains places to go for assistance setting up your own business. As someone who is self-employed, I will tell you that it is not easy to start out, but the personal rewards are great.

• Small, Minority, Women-Owned, Veteran, and Other Disadvantaged Businesses

  Offers a wealth of links to resources designed to help the small, minority, and women-owned businesses. The site is created and maintained by Deborah Kluge, an independent consultant.

• How to Get Funding From Friends and Family

  Most entrepreneurs have learned that it's almost always quicker and easier to get cash from someone you know, rather than angel investors or professional investors (VCs). In fact, most investors "require" that you already have some investment from friends

• NYPL, NYC Small Business Resource Center

  Helpful information about starting, running and financing a small business. Provided by the New York Public Library.

• Facts About Government Grants | SBA.gov

  Explains how the SBA and and other government agencies support business development.

• How to get funds for Business and Startup | Tech Prone

  In starting any business or startup you need a lot of liquidity and cash flows for setting up office,employees and hiring technologies.But the question is in this time of recessions where to get the money?

• * The Facts About Small Business Grants | Business.gov

  The federal government does not provide grants for starting and expanding a business.

• Grants & Loans: Break Through the Myths & Find the Right Financing for Your Needs | Business.gov

  Whether your small business is established or you are new to business ownership, it's important to understand the variety of low-interest government-backed business financing available to you in the forms of loans and grants.

• Membership Directory | Association for Enterprise Opportunity (AEO)

  Use this to find a local microenterprise development agency that is a member of this national trade association for microenterprise. Site has resources on this topic.

Books and Articles

Check title availability at our libraries and Funding Information Network locations or your local libraries.

• "Halo fades for some social entrepreneurs" , 15 December 2014

  By MacBride, Elizabeth. Crain's New York Business 2014 . p. 11-2 , As the number of social enterprises grows…

• "The benefit corporation : corporate governance and the for-profit social entrepreneur" , Winter 2014

  By Hemphill, Thomas A.. Business and Society Review 2014 . p. 519-36 , Article presents the history and structure…

• "SEC crowdfunding rules pose challenges, create opportunities" , 1 October 2014

  By Karash, Julius A.. NonProfit Times 2014 . p. 1, 4 , Examines the impact of the SEC's proposed…

Skill(s)

• Find Foundation Donors

• Grants to Individuals