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w w w. v w m m e d i a . c o m M a y - J u n e 2 015 | V I N E YA R D & W I N E RY M A N A G E M E N T 9 5 w w w. v who support a project by crowd- funding are usually very enthusi- astic. They want to be a part of something." Her goal is to raise $10,000, mainly for trellises and other basic supplies and equip- ment. At the time of this writing, she'd received pledges for a few hundred dollars but was only two weeks into her campaign. Her investors are currently being is successfully funded, the site will collect fees from the total amount raised. (Kickstarter takes a 5% fee plus payment-processing fees between 3% to 5%.) If the cam- paign fails, there are typically no fees. (Note: Crowdfunding is not to be confused with microlending, which is intended to help impover- ished people start enterprises.) Crowdfunding is not without risks. Frauds have occurred on each side of the equation and it is up to individuals to protect themselves. The lender has no idea if the borrow- er will remain true to his campaign promise and has little recourse if he doesn't. Should a campaign not meet its goal, all contributions are returned. PayPal has entered the crowdfunding space by offering a convenient and secure way for users to accept payments and keep fees low. It also has a loan package. Due diligence is minimal among crowdfunding enthusiasts, who rewarded with a wine glass set and other promotional items, and are welcome to come for a guided tour of the vineyard. "It'll be some time before we produce wine," she said. "I want to thank them for their support." Once her business is more estab- lished, Jurun said she may consider working with a bank. Wine-based projects are rare on crowdfunding sites, but some $64 million has been pledged to 3 , 4 0 0 f o o d - b a s e d b u s i n e s s e s , according to Kickstarter. Even the SBA endorses crowdfunding and has published several reports on the phenomenon, including the online training course "Introduc- tion to Crowdfunding for Entrepre- neurs," posted at www.sba.gov. There is usually no cost to launch a crowdfunding campaign and results come relatively quickly; a campaign can reach its goal in less than 30 days. If your project + While traditional bank lend- ing products make up the majority of small-business loans, alternative lenders can be an attractive option. + Millennial entrepreneurs are more comfortable than previous generations with alternative lenders. + Alternative lenders offer small businesses fixed-term loans and revolving credit lines. + Due diligence is minimal in crowd funding, but gener- ally only small amounts of capital are pledged. + ROBS allow entrepreneurs to use their retirement funds to invest in their business. AT A GLANCE Photo: Thinkstock Ask how we can help! (888) 982-1400 ext. 4938 | www.unitedfcu.com Federally insured by NCUA. Equal Opportunity Lender. Equal Housing Lender. Round Barn Winery, Berrien Springs, Mich. LOCATIONS IN ARKANSAS, INDIANA, MICHIGAN, NEVADA, NORTH CAROLINA AND OHIO Providing specialized lending solutions to local businesses