Financing Your Start-Up

When starting any business, research is very important part especially with obtaining start-up capital. There are several ways to receive start-up money for a new business: crowdfunding, friends and family, angel investors, private equity and even venture capitalists. One resource that many entrepreneurs forget about is the Federal Government.

Government grants are funded by tax dollars and require very strict compliance and reporting measures to ensure the money is well spent. Grants from the federal government are only available to non-commercial organizations, such as non-profits and educational institutions in areas such as, medicine, education, scientific research and technology development.

The U.S. Economic Development Administration (EDA) provides grants to economically distressed communities to generate new employment, help retain existing jobs and stimulate industrial and commercial growth. The mission of the EDA is to “lead the federal economic development agenda by promoting innovation and competitiveness, preparing American regions for growth and success in the worldwide economy.”

The EDA evaluates all projects to determine if they advance global competitiveness, creates jobs, leverage public and private resources, can demonstrate readiness and ability to use funds quickly and effectively, and link to specific and measureable outcomes. The EDA encourages its partners around the country to develop initiatives that advance new ideas and creative approaches to address rapidly evolving economic conditions.

The investment priorities are as follows:

1. Collaborative Regional Innovation
2. Public/Private Partnerships
3. National Strategic Priorities
4. Global competitiveness
5. Environmentally-Sustainable Development
6. Economically Distressed and Undeserved Communities

The EDA also shares recent recipients of EDA Grants. The Burlington Electric Department received $1,000,000 to assist in the establishment of an Energy Efficient Revolving Loan Fund (EE RLF). The fund will provide on-bill loan financing for up to 150 commercial electric users seeking to make efficiency electrical improvements. Other recipients include: the City of Garden Grove, CA; City of South Gate, CA; the Norman Economic Development Coalition; Village of Greenfield, OH; the Los Angeles Department of Water and Power, CA and more. 

U.S. Economic Development Administration. (n.d.). Retrieved Nov. 4, 2012, from United States Economic Development Administration: http://www.eda.gov