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Home»Tech News»US startups seeking funds shouldn’t overlook financing from the government – DailyTech
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US startups seeking funds shouldn’t overlook financing from the government – DailyTech

July 31, 2022No Comments1 Min Read
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US startups seeking funds shouldn’t overlook financing from the government – TechCrunch
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Whereas money from Uncle Sam will not be prime of thoughts for startups, SBA loans can present low-cost capital

What’s the distinction between a startup and a small enterprise? Semantics, largely. As many startups discover themselves struggling to lift funds from enterprise capitalists as financing continues to say no this yr, the U.S. Small Enterprise Administration (SBA) might show to be a robust useful resource for capital, even when startups historically search for funds from different sources.

Chris Hurn, the founder and CEO of Fountainhead, is aware of the potential advantages of taking over authorities financing. Fountainhead is a nonbank lender of government-guaranteed loans. Hurn mentioned the present technology of entrepreneurs is laser-focused on elevating equity-based funding from backers like enterprise capital companies — however that isn’t their solely possibility, particularly as fairness will get dearer in present market situations.

“The issue is that enterprise house owners oftentimes overlook fairly available debt capital,” Hurn instructed DailyTech. “They don’t have to surrender any fairness. [SBA loans] can oftentimes be the precise stepping stone they should get to the subsequent stage.”



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DailyTech financing funds government overlook seeking shouldnt startups
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