Creative Financing Here's where to find the money in a credit crunch.

With so many experienced, capable people getting cut loose by corporate employers, there has never been a larger pool of potential entrepreneurs. But with the implosion of so many banks and the continuing credit crunch, there has also never been a tougher time to find financing for a startup. So those looking to launch a small business have to be creative when looking for funding.

Fortunately, some places are still looking to help fund a business. There may be less of it, but the money is still out there. Here are a few nontraditional mattresses for you to look under.

Grants
How nice would it be to have money just given to you? One government website offers a great clearinghouse for hundreds of startup grants. These grants are offered by states and governmental associations, and the list promises to get bigger with all that stimulus money on the way. The grant process is generally not too onerous, and requires little more than a business plan and 10 to 15 pages of paperwork. And the rewards can be tremendous: Cool Energy Inc., a clean-power company in Boulder, Colorado, has earned three sizable grants since 2006, starting with a $100,000 Phase I Small Business Innovation Research grant from the National Science Foundation a year after the company was founded.

As much as the money itself, it's the prestige of earning a grant that can help a startup succeed. "It extends our runway," says Cool Energy president and CEO Sam Weaver, 43. "It's a tough time to get money now, and getting any kind of grant money makes you more attractive to investors."

If you're seeking grant money, Weaver recommends you cast a wide net around any grants you may qualify for, then try to develop relationships with the people who hold the keys. It can be a long process, so the time to start digging up any appropriate grants is now.