> Hi Oliver,

> I used to manage a muti-million dollar
> Economic Development Fund for my local
> community and the money is available... but
> not without a few strings attached.

> "If you qualify" is the key phrase
> when asking for government funding
> assistance.

> The primary 'qualification' for anyone
> interested in funding from my department
> was: "How many jobs will you create and
> what are you using for collateral"?...
> Collateral usually included personal
> guarantees, personal and business assets and
> UCC filings on equipment.

> Each job was equal to approx $10,000 in
> funding. For example, if the company needed
> $100,000 they needed to create 10 NEW jobs
> at the company within 10 months of funding
> or they were in default. The rates were very
> favorable-- usually 3%.

> The funds may be used for working capital,
> equipment and more... as long as you meet
> the qualifications. We did not fund
> restuarants, service businesses and many
> other kinds of bsuinesses though by Federal
> regs. So it wasn't that easy to qualify.

> It may be very helpful for some businesses.
> Look in the 'Blue' pages of your phone book
> and in your city listings look for the
> "Economic development" department.

> Another interesting source of funding for
> larger projects ($1 Million+) was local
> Industrial Development Agency sponsored
> projects.

> The company would apply for industrial bonds
> sponsored through a local IDA. The IDA would
> guaranteed the funds and the company would
> get the money they needed at a fantastic
> rate through investment banks in NYC.

> This was private funding and not governement
> tax money, but the local quasi-government
> agency had to be the sponsor of the project.

> There are a lot of sources of funding out
> there... it just depends on how much you're
> willing to give up in exchange for the
> money, how many hurdles you want to jump and
> how hard you look.

> There are a lot easier ways to make $100,000
> though that you can use to fund any business
> project ;-)

> -Dave

Everything Dave said is correct. I currently serve as an official coordinator for one program (County level) and unofficial coordinator for many at even higher levels.

Many do depend upon the number of jobs you create but some don't. These are typically smaller funds but what the heck. Right now our own fund will do up to $25,000 at 5% over 5 years.

The "key" to any of the funds I currently deal with is the business plan. A good plan with realistic projections can get money. Unfortunately most of the plans we receive are horrible (this would make a good post in itself).

The funny thing is we are getting very few high-tech related plans. Absolutely none in the last year deal with Internet related businesses.

Anyway there is money out...a lot of it if you know where to look, just like Dave says.

Take care,

Mike Winicki