70 percent of Americans think environmental protection is more important than economic growth.
If you’re looking to start a business right now, it really has to be environmentally friendly. You’ll easily attract customers and stay ahead of your competitors.
But what if you don’t have enough capital to start or run the business? Are there any external funding opportunity for green businesses?
We’ve got some good news for you! Continue reading to learn how to secure funding for your eco-friendly business.
Environmental Protection Agency Grants
The American government has a responsibility to create policies geared toward environmental conservation. There are lots of active programs run by the Department of Energy and the Environmental Protection Agency.
The EPA, for instance, offers funding opportunities in the form of grants to eco-friendly businesses.
While securing a government grant or donation is a dream come true for most entrepreneurs, competition for funding is usually fierce. To enhance your business’ chances of securing the funds, ensure its green initiatives have a big impact on the environment. Startups developing technologies that can help solve environmental problems have an advantage.
The Small Business Administration Loans
The SBA is a federal government agency mandated to help small businesses in the country prospect. A big part of its job involves making loans to small businesses in all sectors of the economy.
There’s a wide range of SBA loans your eco-friendly business can qualify for. Whether you’re looking for startup funds or working capital, the SBA has got you covered.
There’s also the SBA disaster loan, which your green business can apply for if it’s been affected by the COVID-19 crisis.
If you go to a bank today to seek a term loan for your eco-friendly business, the bank isn’t going to pay much attention to its environmental sustainability. As long as the credit score meets the bank’s requirements and its profit and loss statement looks solid, there’s a good chance you’ll get approved for the loan.
Besides commercial banks, there are institutions that offer business loans, including credit unions and private finance companies.
Equity financing involves getting business capital but in exchange, you give away a share of your company to the investor. This is an ideal way to raise money for your eco-friendly business, especially because equity financing doesn’t come with a repayment obligation.
There are equity investors who have a preference for investing in green businesses. So be sure to do some online research and reach out to potential investors with your business plan.
Get Your Environmentally Friendly Business Funded
Running an environmentally friendly business isn’t just good for your branding and bottom. It’s also a genuine step in the right direction toward averting global warming. With this guide, you now know how to secure funding for your company and keep it operational.
Stay tuned to our blog for more insights on business and environmental conservation.