Sunday, February 14, 2016

Alternative Funding

Funding is a very crucial aspect of a startup company. Sufficient funds can make or break the success of a company. In the process of finalizing my own startup venture, LODI Music Group, I have researched alterative funding sources to secure adequate funds for launch of my company.

The alternative funding sources that caught my attention were CDFI Coalition (Community Development Financial Institutions Coalition) and the AEO (Association for Enterprise Opportunity). Alternative funding sources are interest groups that are community activist that develop communities by supporting entrepreneurial endeavors. 

CDFI is a member based program where as members benefit by a funding program that has three separate components: The Financial Assistance (FA) component, the Technical Assistance (TA) component and the Native American CDFI Assistance Through these three components, the CDFI Program provides loans, equity investments, and grants to CDFIs to support their capitalization and capacity building, enhancing their ability to create community development impact in underserved markets. The AEO is also a members based program that has a Southeast Initiative that is focused on building the capacity of microenterprises. TILT Forward is second initiative that AEO is offering that is a loan program hat helps borrowers save on interest.

Requirements for the CDFI’s Capital Magnet Fund is to be a certified CDFI or a non-profit organization operating with a principal purpose of developing or managing affordable housing solutions. There are several different programs with different requirements.


Both organizations offer events and conference meet-ups to educate entrepreneurs in order to better their business practices.

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