How to get the funding ball rolling

Start with government funding, and you're in a lot better position to get private funding, says James Byrne, Director of the Small Business Consumer Centre.

Byrne cites the case of Edward Pike. The Newfoundland resort owner managed to secure a $58,000 interest-free loan from the federal government to expand his accommodations. While the amount wasn’t nearly enough to accomplish what he wanted to do, it won the confidence of other lenders and allowed Pike to transform his small resort into a substantial resort hotel. With the federal funding in place, banks felt the business was worth a second look.

"Without that $58,000, the owner says he never would have been able to secure the additional funding," says Byrne. He notes that your first government grant or loan is usually only the first step. "It helps with other lenders, but it also helps with additional grants and loans. Once you get your initial funding, keep at it. Establish a track record, and it's a lot easier to get the money."

Would you like to receive money to launch and grow your own business too? There are monies available now for qualified existing & start-up small businesses. Visit The Small Business Funding Centre for more information.

James Byrne is an owner of http://www.grants-loans.org/; Visit the site (http://www.grants-loans.org/) for more information about Canadian Government Grant Loans For Small Businesses.