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Commonly Asked Questions
Does CED charge for services?
SBDC is not allowed to charge for consulting services. Funds are provided by the U.S. Small Business Administration and the Minnesota Department of Employment and Economic Development (DEED). Workshops, classes, facilities, and other CED services that are not subsidized by government programs have fees as identified on the CED web site.
Does CED provide financing?
No. The SBDC provides for consulting services but does not lend money. CED business consultants can help identify sources of funding to best fit your financial needs.
How much funding will I need?
Funding needs are usually determined by adding the amount of money needed to cover one-time startup costs, including buildings, improvements to leased property, equipment, inventory, and working capital for expected operating expenses. You will also need to have money set aside to pay operating expenses until you achieve sufficient revenue to fund the business.
How do I get a loan?
Lending institutions typically look for the 5 C's when evaluating loan applications: credit, character, collateral, capital, and capacity. Lenders will expect business owners to contribute their own money to the development of the business before they will consider loaning money. Lenders also make decisions based on credit score, good character, and ability of the business to pay back the loan.
Are there grants to start my business?
Generally, there are no government grants available for small businesses because most government grants are awarded to nonprofit organizations or local governments rather than private companies. One exception could be the SBIR or STTR programs, which fund the research and development of technological innovation that meets specific government needs.
Does the SBA lend money?
No, the SBA does not directly lend money. However, the organization does provide guarantees that eliminate some of the risk to its lending partners, such as banks, community development organizations. and microlenders. SBA partners lend money to small businesses based on the guidelines for each of its three loan programs.
Funded in part through a Cooperative Agreement with the U.S. Small Business Administration, Minnesota Department of Employment and Economic Development and regional support partners. All opinions, conclusions or recommendations expressed are those of the author(s) and do not necessarily reflect the program sponsors. Programs are open to the public on a nondiscriminatory basis. Reasonable accommodations for persons with disabilities will be made if requested at least two weeks in advance. Contact UMD CED at 218-726-7298.