Find Public and Private Small Business Funding in 2021
- December 22, 2021
- Written by : Elizabeth Beall
You may not be surprised when we tell you, but you are not alone in this hunt for funding you’ve been on lately. In fact, you are among thousands of other business owners seeking financial help to ensure their small business continues to grow through this year of uncertainty.
To put this into perspective, through SBA’s core lending programs, $44.8 billion in funding was delivered to small businesses in fiscal year (FY) 2021 through more than 61,000 loans, according to the Small Business Administration.
With such great amounts of both private and public funding available, it is your job as a business owner to determine which is the best fit for you, and it is our job to help educate you on your options. First, let’s take a look at the difference between public and private funding.
What is the difference between private and public funding?
The difference is not as simple as you would think. You may have thought that public funding sounds as though it would be sourced from a public entity such as the federal, state, or other publicly funded agency, and that private funding was essentially any funding source that was not publicly funded. That’s not entirely correct actually.
The truth is that many factors influence whether or not the funding source is public or private. For example, private funding doesn’t include public funds, as mentioned, but it may include both grants and gifts, depending on the organization’s mission.
Where the funding is sourced, how each is managed, and and more, is used to determine whether the financing is public or private. If you aren’t sure, just ask one of our qualified financial professionals.
What are the advantages and disadvantages of private small business funding?
Of course there are always pros and cons to every type of funding. With private funding, some of the common advantages are faster turnaround time, possibly fewer regulations, and fewer applicants. Whereas the disadvantages include, but are not limited to: smaller funding amounts, less financial education and support, and tougher predictions that will impact your business.
What are the advantages and disadvantages of public small business funding?
With public small business funding, advantages range from more available funds and larger opportunity for acceptance, to support in conceptual development and expectations given up front ahead of time for full transparency. Some of the disadvantages include but are not limited to: time consuming and detailed application processes, difficulty in proving repayment plans specifically related to risk, and overall higher costs.
How to find public and private small business funding
Public funding is available either via federal, state, or other publicly funded agency. This type of funding is our forte and we’d be happy to walk you through the process. Our funding application for this only takes about 3 minutes of your time. If you are interested in private funding such as grants or gifts, we suggest you consider private investors in your search for financial support.
It is extremely important to analyze your options based on the proposed advantages and disadvantages. At REIL Capital, we believe in transparency and education. We’d be happy to help you determine which is best for you.
Find public or private funding with us today.