You need money. Here is where it actually is.

Small business and startup grants

That's me if:

You are a woman, veteran, person of color, rural, disabled, or building something with a community or environmental angle. There is very likely a grant written for you.

How it works

Free money from governments, foundations, and corporations, awarded for a specific purpose. Federal grants live at Grants.gov (you register at SAM.gov first). Named programs run all year: the Amber Grant awards $30,000 monthly plus a $50,000 year-end award to women, Verizon Small Business Digital Ready gives grants and free training, the NASE growth grant runs up to $4,000 on a rolling basis, and the AmEx Shop Small grant awards $20,000 through Main Street America.

Watch out for

Read eligibility before you spend time writing. Grants are specific: right applicant, right use, right deadline. Never pay a fee to 'unlock' a grant; that is always a scam.

Pitch competitions and business contests

That's me if:

You can explain your idea in two minutes and you are not afraid of a stage or a Zoom panel.

How it works

Universities, cities, banks, and big brands run contests with cash prizes, often $5,000 to $100,000, plus press and mentorship. Many are open to pre-revenue ideas. You pitch; winners keep the money.

Watch out for

Losing still wins you a sharper pitch, judge feedback, and contacts. Enter several. Treat each one as free practice for the next.

Federal innovation grants (SBIR / STTR)

That's me if:

Your idea has a technical, scientific, or R&D angle, even a modest one: tech, biotech, AI, energy, defense, or healthcare.

How it works

The SBIR and STTR programs distribute over $4 billion a year across 11 federal agencies. Phase I awards up to $275,000 for a feasibility study; Phase II up to $1.83 million for full development. The money is non-dilutive: you give up no equity and keep your intellectual property. Phase III can make you eligible for sole-source federal contracts with no competitive bidding.

Watch out for

Applications are serious and take weeks. You must be U.S.-owned, for-profit, under 500 employees, and at least 51 percent owned by U.S. citizens. Worth it for the size of the check and the ownership you keep.

EDA and economic development grants

That's me if:

Your business will create jobs in an area that needs them, or you want to start or grow exports.

How it works

The federal Economic Development Administration issues grants to businesses and organizations that create jobs in distressed areas, with no fixed cap: awards have run from $100,000 into the millions. The State Trade Expansion Program (STEP) funds small businesses that want to begin or expand exporting.

Watch out for

These often flow through a partner (a city, nonprofit, or public entity). Your local or state economic development office is the door.

Rewards crowdfunding

That's me if:

You have a product people can pre-order, or a story a crowd would rally behind.

How it works

On Kickstarter or Indiegogo, backers pay up front for the product or a perk, not ownership. Campaigns can raise anywhere from $10,000 to several million before a single unit is made. It is both your startup capital and your proof that people will buy. Kenny and the platform help you build the page, the video script, and the launch list.

Watch out for

Momentum is everything: most campaigns raise a big share in the first 48 hours from people you personally bring. Build your launch list before you press go.

Fiscal sponsorship (for mission-driven work)

That's me if:

Your idea helps people or a cause, and you want grant and donor money before you are a full nonprofit.

How it works

A fiscal sponsor is an existing nonprofit that lets you operate under their tax-exempt status, so donations and grants that require a 501(c)(3) can flow to your project today. You skip the year-long wait to form your own nonprofit.

Watch out for

The sponsor takes a small administrative percentage and you follow their rules. It is a bridge, not a forever home, but it opens funding doors immediately.

Microloans and community lenders (CDFIs)

That's me if:

You need $500 to $50,000, you are early, and a big bank has already said no or asked for things you do not have yet.

How it works

Community Development Financial Institutions and nonprofit microlenders exist specifically to fund people the big banks pass over: minority-owned, women-owned, and first-time borrowers. They underwrite on your character and potential, not just a credit score, and their loans perform: CDFIs have held over $25 billion in small business and microloans with a charge-off rate under 1 percent. Kiva loans can be 0 percent interest, crowdfunded by strangers who believe in you.

Watch out for

Smaller checks, more patience, more coaching. This is often the single best first stop for a brand-new business with no track record. Find one with the OFN CDFI Locator.

SBA loans (7(a) and 504)

That's me if:

You have some history or strong collateral and you need a larger, longer-term loan at a fair rate.

How it works

The SBA does not lend directly; it guarantees loans that banks, credit unions, and CDFIs make, which lowers their risk and gets you approved. The 7(a) covers working capital, equipment, inventory, real estate, and even buying a business, up to $5 million. The 504 is built for fixed assets (real estate and equipment) at long-term, below-market rates. In FY2025 the SBA backed 85,000 of these loans, totaling $45 billion.

Watch out for

More paperwork and a slower yes, but the rates and terms are hard to beat. Line up your EIN, formation documents, and a business plan first. A free SCORE mentor will help you prepare.

Credit unions and community banks

That's me if:

You want a real human banker who knows your name and your town, not a call center.

How it works

Credit unions are member-owned and not-for-profit, so they often offer lower rates and more patience than national banks, and can say yes on a $10,000 to $250,000 early-stage loan a big bank declines. Build the relationship before you need the money: open the account, then ask about a loan or line of credit.

Watch out for

You usually must be a member to borrow, which can be as simple as living in the area. They may not scale to very large loans as you grow.

Business credit cards and EIN-only business credit

That's me if:

You need to float startup costs for a few months, and you want to build credit in the business's name, not just your own.

How it works

A business card with a 0 percent introductory period is short-term working capital while you build. Longer term, a business can build its own credit profile under its EIN: get a DUNS number, open vendor accounts that report to the business bureaus (Dun & Bradstreet, Experian Business, Equifax Business), pay on time, and climb the tiers. Over 12 to 24 months that unlocks lines of credit and equipment financing with no personal guarantee.

Watch out for

The 0 percent card is a discipline tool, not free money: have a written payoff plan before the intro rate ends. EIN credit is a slow build, but it protects your personal assets.

Invoice factoring (get paid now on what you are owed)

That's me if:

You sell to other businesses or to the government and you wait 30, 60, or 90 days to get paid on invoices.

How it works

You sell an unpaid invoice to a factoring company for an advance of 80 to 93 percent of its value, usually within one business day. They collect from your customer, then release the rest minus a 1 to 3 percent fee. The genius part: approval is based on your customer's credit, not yours. A founder with poor personal credit who lands a contract with a big company or agency can get working capital immediately.

Watch out for

It is a cash-flow bridge, not a loan, and the fee is the cost of speed. Best when you have real invoices from creditworthy customers.

Revenue-based financing (repay from sales, not equity)

That's me if:

You have predictable, recurring revenue (subscription, SaaS, or steady e-commerce) and a growth move that will pay for itself.

How it works

You take a capital advance and repay it as a fixed slice of monthly revenue, typically 1 to 7 percent, until you have paid back a set cap (often 1.2x to 1.5x the advance). It is non-dilutive: no equity given up. The category grew 340 percent in 2025 as founders chose it over selling ownership.

Watch out for

The effective annual cost often runs 15 to 25 percent, so read the contract. Best when the capital funds something measurable that pays back inside 12 to 18 months.

Home equity: HELOC or cash-out refinance

That's me if:

You own a home worth more than you owe, especially if you have owned it 10 years or more.

How it works

A HELOC is a revolving line you draw against your equity (usually up to 80 to 85 percent of the appraised value minus what you owe), perfect for a phased launch. A cash-out refinance instead replaces your mortgage with a larger one and hands you the difference as a lump sum, at a mortgage rate that is often far below business-loan rates. In appreciated markets people access $40,000, $150,000, even $500,000 they did not know they had.

Watch out for

Your home is the collateral. If the business cannot repay, the house is at risk. Borrow an amount the venture can realistically service, and treat this seriously.

Change the use of a property to unlock big financing

That's me if:

You own or control a property (a large house with 5+ bedrooms, a lot, an old building) that could legally become something else: commercial space, a wellness center, a licensed care home, co-working, mixed-use.

How it works

This is the nine-bedroom-house move, one of the biggest and least discussed pathways to real capital. When a property is rezoned or re-permitted from residential to commercial, it becomes eligible for financing it could never touch before: SBA commercial loans, New Markets Tax Credits, CDFI financing, and sometimes federal economic development grants. A single home in a commercial corridor can become eligible for over one million dollars to convert it into something that generates income.

Watch out for

Zoning, permits, and licensing are local and slow, and getting it wrong is costly. You will want a real estate attorney and your city's planning department. Confirm the path before you count on the money. When it works, it is transformational.

Tax-lien and tax-deed property (turn a little into a lot)

That's me if:

You have a few hundred to a few thousand dollars and the patience to do county homework.

How it works

Counties sell liens on properties with unpaid taxes, sometimes for a few hundred dollars. You earn interest when the owner repays (rates run 8 to 36 percent depending on the state), and if they do not repay within the redemption period you may foreclose and acquire the property. A $1,000 lien can sit on a $150,000 home. A small stake, done patiently, can become $10,000 to $50,000 in seed money for your real idea.

Watch out for

Rules vary by state and county and there are real pitfalls: redemption periods, title issues, occupied properties. Not every state allows it. Learn one county's process cold before you bid a dollar.

Fund a business with retirement savings (ROBS)

That's me if:

You have a 401(k) or IRA of roughly $50,000 or more from an old job.

How it works

A Rollover for Business Startups (ROBS) is an IRS- and ERISA-recognized structure that lets you invest retirement funds into your own C Corporation without an early-withdrawal penalty or taxes. There is nothing to repay: it is your money funding your company. Some entrepreneurs even combine ROBS with a commercial real estate purchase inside the business.

Watch out for

This is advanced and IRS-scrutinized: it must be structured exactly right, with annual compliance filings, and you are putting retirement money at business risk. Only with an experienced ROBS provider.

Borrow against a life insurance policy (the quiet one)

That's me if:

You have a whole life or universal life policy that has built up cash value.

How it works

One of the most powerful tools almost no one has heard of. Once a permanent policy builds cash value, you can borrow against it with no credit check, no questions about how you use it, and no fixed repayment schedule, often with funds in three to five business days. The trick: your cash value stays in the policy and keeps earning while the insurer lends you their money against it. Borrow $50,000 against $100,000 of cash value and you still earn on the full $100,000.

Watch out for

Rates typically run 5 to 6 percent simple interest, and unpaid loans reduce the death benefit. You need a policy with real cash value already built, which takes years of funding. But it does not touch your credit.

Sell or rent what you already own

That's me if:

You have a spare room, a vehicle, equipment, a skill, or things gathering dust.

How it works

The least glamorous and most reliable source of startup cash: rent the spare room, rent out the truck or the tools, sell what you do not use, take on a few freelance gigs in your existing skill. It is un-owed, un-borrowed money you control completely.

Watch out for

Slower and smaller, but it is real, it is yours, and it proves discipline to every lender and investor you talk to later.

Friends, family, and your first believers (done right)

That's me if:

Someone in your circle believes in you and could put in a few hundred or a few thousand dollars.

How it works

The most common first outside money there is. Do it properly: a one-page written agreement, clear terms (a loan to repay, or a small share), and honest expectations. Kenny and the business plan tool help you put it in writing so relationships stay intact.

Watch out for

Never take money someone cannot afford to lose, and always put it in writing. The paperwork protects the relationship, not just the money.

Equity and community crowdfunding (Regulation CF and A+)

That's me if:

You have a community or customer base that would love to own a piece of what you are building.

How it works

Under Regulation Crowdfunding you can raise up to $5 million a year from ordinary people, not just the wealthy; Regulation A+ raises that ceiling to $75 million. Platforms include Wefunder, StartEngine, Republic, and SeedInvest. It turns customers into shareholders and advocates. Its cousin, community lending (Kiva, Mainvest, SMBX), lets a crowd fund you with debt instead of equity.

Watch out for

Fees run 5 to 8 percent and the raise must follow SEC rules. Best when you already have a crowd who wants you to win.

Angel investors and SBIC funds

That's me if:

Your idea can grow large and you are willing to trade a slice of ownership for a serious check and a mentor.

How it works

Angels are individuals who invest their own money in early companies, often $10,000 to $100,000, for equity, and many join regional or industry groups. For larger, patient capital, the SBA's SBIC program licenses private funds that invest government-backed money into small businesses (a record $53 billion in portfolio volume in FY2025). A warm introduction beats a cold email every time.

Watch out for

You give up ownership and gain a partner with opinions. Right for high-growth ideas; overkill for a steady local business. Know which you are building.

Pre-sales and deposits (fund it with customers)

That's me if:

You can describe exactly what you will deliver and to whom.

How it works

The purest funding of all, and the most underused: customers pay before you build, so your first sales are your startup capital and your proof of demand at once. Close 20 clients at $500 before you build anything and you have $10,000 and 20 validated customers. Take deposits, sell founding memberships, open a paid waitlist.

Watch out for

You owe delivery, so only pre-sell what you can truly make. Done right, you never borrow at all.

Seller financing (buy the business or property, no bank)

That's me if:

You want to acquire an existing business or property and the owner wants a clean exit more than a big check today.

How it works

The seller becomes the lender: you put a small amount down and pay the rest over time from the income the business or property generates. Deals are often structured with the seller financing 80 percent or more, so you bypass the bank's credit and approval process entirely. The asset pays for itself.

Watch out for

It takes negotiation and real due diligence, and you must confirm the income is real. Powerful for distressed or owner-operated businesses with a motivated seller.

Minority, women, veteran, and disability-owned certification

That's me if:

You are a woman, a person of color, a veteran, or a person with a disability, and you own at least 51 percent of your business.

How it works

Official certification (MBE, WBE, WOSB, VOSB/SDVOSB, DOBE) unlocks set-aside government and corporate contracts, dedicated grant pools, and lender programs reserved for certified businesses. Billions in contracts are legally reserved for these certifications every year.

Watch out for

Form the business first, then apply through the SBA or a certifying body. The paperwork is real but the doors it opens are worth it.

New Markets Tax Credit (NMTC) financing

That's me if:

Your business or real estate project is (or could be) located in a federally designated low-income community.

How it works

One of the government's most powerful and least-used tools: since 2000 it has pulled more than $31 billion of private capital into over 15,000 businesses in low-income communities. You access it through a certified Community Development Entity, and it arrives as below-market rates, flexible terms, and in some structures a chunk that converts to equity (free money) after a seven-year period. Financing runs from $500,000 to $50 million.

Watch out for

It is a gap-financing tool for a real project, arranged through a CDE, not a quick personal loan. Many urban neighborhoods, rural towns, and transitioning commercial zones qualify.

Opportunity Zones

That's me if:

You (or an investor you know) recently sold stock, property, or a business and are holding a capital gain, and you are willing to build in a designated zone.

How it works

Opportunity Zones are federally designated distressed tracts in all 50 states. Roll a capital gain into a Qualified Opportunity Fund that invests in a zone and you defer the original gain, step up your basis over time, and can pay zero tax on the new appreciation if you hold past ten years. It is a tax shield and a development vehicle at once, aimed at exactly the communities where new business is needed most.

Watch out for

The rules are technical and the map matters. Confirm the designation and talk to a tax professional, but the savings can change a project's whole math.

USDA Rural Development programs

That's me if:

You are building in a small town or rural area (the eligibility maps reach further than people expect).

How it works

The USDA runs a stack of programs for rural businesses: the Rural Business Development Grant, the Rural Microentrepreneur Assistance Program (RMAP) for the smallest businesses, the Rural Energy for America Program (REAP), and Business and Industry guaranteed loans. It is a large, under-applied-for pool aimed squarely at places the coasts ignore.

Watch out for

Check the eligibility map first; a surprising number of areas qualify. Some grants flow through a nonprofit or public partner, so call your state USDA Rural Development office.

Community Land Trusts and your local economic development office

That's me if:

You want cheaper land or space, or you have simply never called your city's economic development office (almost nobody does).

How it works

A Community Land Trust is a nonprofit that holds land in trust to keep it affordable; locating on or partnering with one can slash your land cost and change a project's whole economics. And every state and most cities run revolving loan funds, micro-grants, gap financing, and façade and equipment money that exist to be spent and go unused because people do not ask.

Watch out for

One phone call can surface money you did not know existed. Ask plainly: 'What programs help a business like mine start or grow here?'