Early stage companies have numerous resources to finance their business, from government funding to regional matching grants to local investment firms. Below, you will find quick glimpses into the finance world as well as helpful links to guide you.

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• Government Funding
• Matching Grants
• Strategic Partnerships
• Equity Capital
• Bonds

Government Funding

• Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) - three phased federal funding programs specifically for small businesses to perform R&D needed by the participating agencies.

• Enterprise Florida SBIR/STTR Phase 0 Grant Program – provides grants of up to $3000 to support preparation of a Phase I SBIR or STTR proposal.

• SBA 504 Loan Program – U.S. Small Business Administration (SBA) approved loan program designed to help owners of small and mid-size businesses purchase commercial real estate. (Note: Over 98% of companies in Florida are viewed as “small businesses” by the SBA.) A major benefit of the SBA 504 Loan is that it finances as much as 90% of a borrower’s “total project cost”, including land, acquisition/construction, equipment, soft costs and closing costs. This, combined with longer amortizations (up to 30 years) and long-term fixed interest rates, allows business owners to enjoy the advantages of owning commercial property with minimal impact on cash flow.

  Metro Orlando-headquartered Mercantile Commercial Capital, LLC (MCC) is the only company nationwide that exclusively focuses on providing SBA 504 loans for business owners to finance commercial property. Extending 90% loan-to-cost commercial real estate financing with less money down and longer fixed rate terms, this program offers owners of small and mid-sized businesses increased ability to purchase commercial real estate instead of leasing, while preserving capital and maximizing cash flow. The EDC is available to facilitate meetings with MCC.

• Other Government Grants – come from local, state and federal agencies that spend billions of dollars each year for procurement, research and consultant services. Startup companies may wish to partners with a larger company and serve as a subcontractor or pursue small business set aside contract/grant opportunities.

Matching Grants

• Florida High Tech Corridor Council - provides matching grants to companies located in the 23-county Corridor region; grants support industry-university research projects and SBIR/STTR awards in which one of the three participating universities is a partner (University of Florida, University of Central Florida, University of South Florida).

Strategic Partnerships

• Strategic Partnerships or Alliance– two entities working together to achieve a common goal. For an emerging company, these relationships can provide capital as well as a customer base, marketing and sales support and additional technical talent. For the established company, the start-up partner provides new technology, new talent and speed.

Equity Capital

• Angel Investors – An angel investor generally wants less control of your company and a slower return on investment, however the criteria for investment are likely to be similar. Angel investor groups are great sources of private capital and frequently invest angel money into new companies.

• Seed Stage Venture Capital – usually involves capital provided to prove a concept and support product development. Less the 8% of all VC funding in the past 23 years has been seed stage.

• Start-up Financing – funding provided for product development and initial marketing (which means the company has key management, market research and a business plan in place).

• Small Business Investment Companies – licensed by the U.S. Small Business Administration, these privately owned and managed investment firms combine their own capital with funds borrowed from the government and invest as venture capital in small businesses.

Florida First Capital Finance Corporation (FFCFC) has been established to assist companies in the packaging of SBA 504, SBA 7A, Recycling Loans and Energy Loans. The EDC is available to facilitate meetings with FFCFC and the company.

• Two ‘Fs’: Friends & Family - raising money from people who know and love you or who you convince to believe in you is also an option. Typically you can raise $25k-$250k.

Bonds

Specific programs include:

• Industrial Development Revenue Bonds
• Enterprise Florida Bond Program

Industrial Development Revenue Bonds (IDRB)
IDRB financing is a federal program, administered by the state at the local level. The bonds can be used for the purpose of financing or refinancing expansion of two types of companies: manufacturers and non-profit organizations. Bond financing can provide up to 100 percent funding of a qualified project within federally specified dollar limits.

IDRBs are beneficial to qualified companies as they are longer term and available at a lower interest rate than most commercial loans. The interest on the bonds has preferable income tax treatment by the IRS and those savings are passed along to the user. Like commercial loans, IDRB approval is related to the company’s credit worthiness.

Do We Qualify?
Existing manufacturers and not-for-profit corporations are eligible to apply. Applicants need to demonstrate that IDRB financing would fund business expansion projects within the Metro Orlando region. Projects must be economically beneficial to the county, provide gainful employment, and protect the environment, as well as the general welfare and public health of the state of Florida. Commercial and industrial applicants must also demonstrate that at least 75% of the space/facility built using IDRB funds would be used for core manufacturing. It is recommended that applicants consult with bond counsel to determine eligibility.

How do we apply?

What happens next?

What is the minimum/maximum Bond amount?
The minimum is $1.25 million. The maximum for manufacturers is $10 million; no maximum for 501(c)3 not-for-profit organizations. Provided that the total of all of the borrower’s capital expenditures during the period beginning 3 years prior to the issuance of the bonds and ending 3 years after the issuance of the bonds with respect to the borrrower's facilities within the local jurisdiction, plus the amount of the bonds, will not exceed $20 million. No limit for tax-exempt organizations. Note: 501(c)6 do not qualify.

What is the interest rate?
Typically below conventional commercial lending rates.

How long is the term?
Up to 30 years.

Enterprise Florida Bond Program
This program is available for manufacturing projects between $800,000 and $2 million. The guidelines are similar to the regular Industrial Revenue Bond Program. These issues are pooled with other projects and approved on a quarterly basis.

Pooled Activity Bond