How to Fund a Start-Up in New York

If you do not have enough of your own money to fund your new start-up in New York, you can seek other means of financing the business. Finding the money to finance a new business in New York is no different that funding a start-up in any other state. New York does not have any unique rules or regulations pertaining to funding a new business in the state.

Instructions

1. Estimate how much money you need to fund the new business. The New York Better Business Bureau recommends adding up costs such as rent, inventory, advertising, supplies and equipment to determine how much you need to start the business.

2. Determine what type of funding you prefer. If you want to have total control over the business, you need to stick to funding that just requires you to make a monthly payment. If you do not mind sharing ownership, you can look for equity funding wherein you do not make payments and instead give up some equity in the business.

3. Seek financing from a financial institution if you prefer for your funding to be a loan. Generally you need a business plan and some collateral, such as real estate, to be approved for a new business loan. If you are rejected, you can apply for a loan guarantee through the New York Small Business Association, which allows you to use the SBA guarantee to reapply for the loan. The SBA website (sba.gov) has a loan-search function you can use to identify sources of business financing.

4. Use the SBA website to identify venture capital firms if you want to give up equity in the business in exchange for funding. You also usually need to have a business plan to present for funding consideration, just like with a traditional lender.

Tips & Warnings

• Not all businesses are eligible for SBA assistance, including rare coin dealers and real estate investment firms. The SBA website has a list of ineligible and eligible businesses.

References

• New York Better Business Bureau: How to Start Your Own Business in New York
• Small Business Association: Loan, Grants & Funding

Resources

• Small Business Association: New York District Office
• New York State Small Business Development Center: Education. Entrepreneurship. Economic Development.
• Small Business Association: Search for Business Loans, Grants and Financing
• Small Business Association: Venture Capital
• Small Business Association: Businesses Eligible & Ineligible For SBA Assistance