Show me the money

Alternative sources of income for entrepreneurs and small business opens doors

All start up businesses require a certain amount of capital. Our Band Off festival is no different. There are different ways to raise these funds, like borrowing the capital from relatives or seeking individual investors. There are also other, less traditional avenues available to the discerning entrepreneur.

NCIF

The National Community Investment Fund is one of these alternative sources of financing. NCFI invests money in Community Development Financial Institutions. Individual CDFIs, in turn, invest the money in low-income areas, giving the less fortunate access to home loans and business capital. According to the website, www.ncif.org, “CDFIs help bridge the growing U.S. financial services access gap by bringing capital and financial services to low-income people and communities, affording them access to capital to start and expand businesses, build and purchase homes, and develop needed community facilities.” There are almost 500 CDFIs in the US, ranging from banks to venture funds.

AEO

The Association for Enterprise Opportunity, a national membership organization, works to sustain microenterprise in the United States. The focus on helping underserved entrepreneurs in starting, stabilizing and expanding their businesses. According to their website, www.microenterpriseworks.org/, there are 25.5 million microbusinesses, defined as one that employs between 0 and 4 people, in the US. California is home to 3.2 million of them. If 1 in 3 of these businesses hired just one more employee, our country would achieve full employment. AEO member organizations work to make this happen by making direct loans and offering mentors to help entrepreneurs succeed.

CDVCA

Another group funneling capital into underinvested markets is the Community Development Venture Capital Alliance http://www.cdvca.org/. With a tagline like private equity for the public good, their money won’t be available to just anyone. But it is available for some. “CDVCA promotes use of the tools of venture capital to create jobs, entrepreneurial capacity and wealth to advance the livelihoods of low-income people and the economies of distressed communities.” As a rural business promoting public enterprise, Band Off may well fit under their rubric.