SBA 504 Loans & Other Non-Traditional Financing Options for Businesses in Utah
Updated: Mar 24
SBA 504 Loans
Starting and running a small business can be a daunting task, especially when it comes to financing. Traditional financing options such as bank loans may not be available or feasible for many small business owners. Fortunately, there are several non-traditional small business financing options available, including SBA 504 financing.
SBA 504 financing is a type of loan that is guaranteed by the U.S. Small Business Administration (SBA). This loan is specifically designed for small business owners who need to purchase fixed assets such as real estate, equipment, or machinery. The loan amount can range from $125,000 to $20 million, and the repayment terms can be up to 25 years.
Another non-traditional financing option is crowdfunding.
Crowdfunding is a way for small business owners to raise funds by asking a large number of people to contribute a small amount of money. There are several crowdfunding platforms available, such as Kickstarter, Indiegogo, and GoFundMe. These platforms allow small business owners to create a campaign, set a funding goal, and offer incentives for contributions.
Venture capital is another option for small business financing.
Venture capital firms provide funding to small businesses that have the potential for high growth and high returns. In exchange for the funding, the venture capital firm receives a percentage of the company's ownership.
Angel investors are individuals who provide funding to small businesses.
Unlike venture capital firms, angel investors typically invest their own money and are less concerned with high returns. They may also provide guidance and mentorship to the small business owner.
Invoice factoring is another non-traditional financing option.
This involves selling unpaid invoices to a factoring company at a discounted rate. The factoring company then collects the payment from the customer and takes a fee for their services.
Finally, microloans are another financing option for small businesses.
Microloans are small loans, typically less than $50,000, that are provided to small businesses that may not qualify for traditional bank loans. These loans can be used for a variety of purposes, including working capital, inventory, and equipment.
For the Utah small business owner, there are several non-traditional financing options available for small businesses, including SBA 504 financing, crowdfunding, venture capital, angel investors, invoice factoring, and microloans.
For guidance on any of these options as well as for help with traditional financing, contact the team at Wasatch Business Finance at 385-799-6700 or www.wasatchcdc.com