As we step into National Small Business Week, I want recognize the unwavering spirit of entrepreneurs across California and beyond. Starting and growing a small business is never easy—it demands resilience, clarity, and smart financial thinking. From my ventures and experience as CEO of American Lending Center, I’ve learned that how you start financially sets the tone for everything that follows.

Bootstrap When You Can, Strategize When You Can’t

In the early days, every dollar matters. Whether you’re renting your first office, building your minimum viable product, or testing the waters with initial customers, how you handle those funds sets the tone for your future operations.

Bootstrapping is more than a starting tactic — it’s a philosophy. It teaches fiscal discipline, resourcefulness, and value-driven decision-making. More importantly, it builds credibility — it shows investors you’ve put your own skin in the game. But bootstrapping has its limits. When it’s time to scale, entrepreneurs must recognize the inflection points that require outside capital and have a clear financing strategy in place. The smartest founders know when to conserve and when to scale — and prepare accordingly.

Understand the Power of Non-Dilutive Funding

Non-dilutive funding — capital that doesn’t cost you equity — is often overlooked but highly strategic. This includes:

• Government-backed loans like the SBA 7(a), 504 loans, and USDA Business & Industry loans
• Grants and tax credits
• Revenue-based financing

At American Lending Center, we’ve seen how these tools can help entrepreneurs retain ownership, gain credibility, and build early financial structure — leading to stronger outcomes during future capital raises. Non-dilutive funding also helps preserve control, decision-making power, and flexibility while supporting growth.

Seek Investors Who Bring More Than Money

When raising capital, remember: not all money is equal. The best investors bring:

• Industry expertise
• Networks and relationships
• Mentorship and guidance
• Strategic alignment

You’re choosing a business partner, not just a funder. Vet their track record, values, and ability to support your mission in the long term. Misaligned investors can become costlier than the capital is worth. Strong investor relationships can open doors to customers, additional funding, top talent, and market visibility, making them an invaluable part of your growth journey.

Leverage Alternative Capital Sources

Today’s entrepreneurs aren’t limited to traditional banks or VC firms. Explore alternative financing, including:

• Crowdfunding via platforms like Kickstarter, Indiegogo, and StartEngine
• Revenue-based financing, where repayment aligns with monthly revenue
• Fintech lending through Square Capital, Kabbage, and Shopify Capital
• Convertible notes, merchant cash advances, and platform-specific venture funds

These tools offer speed, flexibility, and non-traditional underwriting — especially helpful for seasonal, product-driven, or early-revenue companies.

Be Ready to Bridge Financing Gaps

Even great businesses face cash flow gaps. Whether it’s delayed funding, long sales cycles, or regulatory timing, having a bridge financing plan is crucial.

Bridge capital can take the form of:

• Short-term loans
• Lines of credit
• Receivables advances
• Mezzanine debt

At American Lending Center, we’ve supported projects — particularly in EB-5 infrastructure and real estate — through such transitions. A proactive mindset and trusted lending relationships can ensure continuity when timing doesn’t align.

Think Like a CFO from Day One

Every founder should adopt a CFO mindset, even before hiring one. That means:

• Tracking burn rate, revenue growth, gross margins, and customer acquisition costs
• Building and revisiting financial models
• Asking critical questions:
  • How long is our runway?
  • Where are we overspending?
  • What assumptions drive our forecasts?

Strong financial visibility improves decision-making and builds trust with partners, investors, and your team. It’s not about being conservative — it’s about being in control.

Closing Thoughts

Small businesses don’t succeed by accident. Behind every success is a founder who had the courage to dream and the clarity to fund that dream wisely.

As we celebrate National Small Business Week, I urge every entrepreneur to take a fresh look at their financing strategy — not just as a means to survive, but as a tool for resilience, growth, and long-term independence.

Money isn’t the goal. It’s the engine. Where you steer it — that’s your legacy.

Mr. John Shen

CEO and Founder of ALC/SMI

John Shen is the creative pioneer behind the groundbreaking integration of banking’s senior loan origination with EB-5 operations. He obtained his master’s degree from Duke University in 1996 and his undergraduate degree from the Law School of Peking University in 1992.

John is the founder of American Lending Center (ALC), launched in June 2009, and the founder of Sunstone Management, Inc.—a private capital management firm focused on early-stage venture capital, economic development, and public-private partnerships.

In October 2017, John received the Coleman Report’s “SBA 504 Lender of the Year Award” for his outstanding leadership and contributions to business lending across the nation.

As an Economic Development Commissioner for the City of Long Beach, John also co-founded the first-ever Long Beach Accelerator™ to support tech startups and promote foreign direct investment (FDI) and international trade for the city.

About American Lending Center: A Financial Times (FT) Americas’ Fastest Growing Company

American Lending Center LLC (ALC), a mission-driven California-regulated lender, is a licensed SBA 7(a) and SSBCI lender. Together, ALCH and ALC have supported the creation or retention of over 140,000 jobs in the U.S. economy, underwriting impactful projects that foster economic growth. 

American Lending Center Holdings (ALCH) manages 14 EB-5 regional centers sponsoring projects across the United States. Since 2009, ALCH has raised EB-5 capital for over 100 projects in 31 states including I-956F approvals from USCIS of 28 projects. ALCH has been featured on the Inc. 5000 list of “Fastest-Growing Private Companies in America” for five consecutive years (2020–2024) and was also ranked among “America’s Fastest Growing Companies” by Financial Times in 2021, 2022, 2023 and 2025. 

Follow American Lending Center on  LinkedIn, Facebook, Twitter, and YouTube.    

© American Lending Center 2025