For a small business owner in Alabama, securing funding is often the first step toward growing or sustaining the business. Fortunately, the state offers a variety of programs, grants, and loan options tailored specifically for businesses operating in Alabama. Here are 20 ways to secure a small business loan or funding for your Alabama-based business:
Government Programs and Non-Profit Loans
1. Alabama SBDC Network Assistance
Alabama SBDC offers free loan preparation services and links with local lenders to enable the small business access capital.
2. AIDT-Industrial Development Training
AIDT grants and loans provide workforce development assistance that assists small businesses in the state to train their employees in order to expand their operations.
3. Economic Development Partnership of Alabama (EDPA)
The EDPA helps small businesses by providing them with loans and grants focused on enhancing economic development across the state.
4. Alabama USDA Rural Development Loans
The USDA Rural Development program offers Alabama’s rural businesses funds to spur economic growth and job creation.
5. Community Development Block Grant (CDBG) Program
CDBG grants are offered to small businesses in Alabama for infrastructure improvements and job creation projects. These grants are administered by local governments.
6. Alabama Department of Economic and Community Affairs (ADECA)
ADECA offers funding opportunities, including small business loans for energy efficiency and infrastructure projects.
7. LiftFund
LiftFund is a nonprofit that provides microloans and small business loans to entrepreneurs in Alabama, mainly those who cannot access conventional loans.
8. Alabama Capital Access Program (CAP)
CAP is a program that seeks to assist small businesses access loans by creating a reserve fund that will help to minimize the risks associated with lending. Many local banks participate in this program.
9. The Small Business Administration (SBA)
The SBA partners with Alabama-based lenders for 7(a) loans, 504 loans, and microloans that can benefit small businesses operating in Alabama. More about the SBA Alabama District Office is available here.
10. Minority Business Development Agency (MBDA)
Grants, access to funds, grants, and any other relevant support from MBDA go to the help of developing minority-owned Alabama businesses that are able to grow.
Find the right loan product for your business.
Local Bank and Credit Union Loans
11. Regions Bank
Regions Bank is based in Alabama and has small business loans, lines of credit, and SBA-backed loans with local expertise.
12. ServisFirst Bank
ServisFirst Bank offers business loans and SBA lending solutions specifically designed for Alabama entrepreneurs.
13. Alabama Credit Union
Alabama Credit Union provides competitive rates on small business loans, equipment financing, and working capital.
14. America’s First Federal Credit Union
America’s First FCU Specializes in local business finance, such as real estate loans and lines of credit.
15. Bryant Bank
Bryant Bank is an Alabama-based bank that offers SBA-backed loans, term loans, and equipment financing.
Alternative and Specialized Funding
16. Alabama Power Foundation Grants
Alabama Power Foundation supports business through grants for community and economic development projects.
17. Crowdfunding Platforms
Use sites like Kickstarter or GoFundMe to raise funds from supporters and customers for your business.
18. Angel Investors and Venture Capital
Alabama has become a fast-emerging network for angel investors and venture capital groups and includes the Birmingham Venture Club, which encourages innovative businesses.
19. Alabama Green Loan Program
This is an interest-rate loan that can be extended to any business investing in energy efficiency or renewable projects.
20. Southern Development Council (SDC)
SDC grants SBA 504 loans along with other financial options to help small businesses develop in the state of Alabama.
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