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1. Does AEDC have grants for businesses?

AEDC does offer a variety of loan programs. AEDC does not provide start-up grants or other grants to individuals or businesses. Visit the SBA Federal Grant Opportunities web site for more information.

2. What is a business plan and why do I need one?

A business plan precisely defines your business, identifies your goals and serves as your firms resume. Its basic components include a current and pro forma balance sheet, an income statement and a cash flow analysis. It helps you allocate resources properly, handle unforeseen complications, and make the right decisions. Because it provides specific and organized information about your company and how you will repay borrowed money, a good business plan is a crucial part of any loan package. Additionally, it can tell your sales personnel, suppliers and others about your operations and goals.

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3. How much money do I need to get started?

Once you have taken care of your building and equipment needs you also must have enough money on hand to cover operating expenses for at least a year. These expenses include your salary as the owner and money to repay your loans. One of the leading causes of business failure is insufficient start-up capital. Consequently you should work closely with your accountant to estimate your cash flow needs.

4. What do I need to exceed in business?

There are four basics of success in small business:

• Sound management practices
• Industry experience
• Technical support
• Planning ability

Few people start a business with all these bases covered. Honestly assess your own experience and skills; then look for partners or key employees to compensate your deficiencies.

5. What type of collateral do I need for a loan?

Repayment ability from cash flow of business is a primary consideration in the AEDC loan decision process but good character, management capability, collateral and owners equity contribution are also important considerations. AEDC does not deny approval for a loan solely due to lack of collateral; however it can be used as a reason, in addition to other credit factors.

6. How do I get information about "How to Start a Small Business?"

Contact AEDC for help, as well as, the NY Loves Small Biz web site which is New York States one-stop shop for small business looking to start or expand in New York. This comprehensive web site allows small business owners to connect to all the various State government programs, services and information available to assist their operations.

7. How can I develop business Internet skills?

E-commerce is the way of the future. Visit our online tutorials, and workshops that we offer throughout the year.  The U.S. Small Business Administration is constantly developing new and better ways to use the Internet and other emerging technologies to improve their bottom line. Visit the SBA web site for information and E-commerce resources.