By: Susan Wilson Solovic, CEO, SBTV.com

Author of: The Girl's Guide to Building a Million Dollar Business

Q. I plan on leaving my current job and starting my own business, but I know I'm going to need to borrow some money to buy the equipment and things I need. Everything I read nowadays says banks aren't loaning to small businesses because of the economy. Someone told me I should look for an angel investor. What is an angel investor and do they loan money to start-ups?

Susan-Says: An angel investor is someone who invests in a business venture by providing capital for startup or expansion. But don't be fooled by the name. They aren't necessarily benevolent people doling out cash to needy businesses. They are typically affluent individuals who are willing to invest in high-risk, start-up business ventures in return for equity (ownership in your business) and a high return on their investment.

Typically, small businesses turn to angel capital after they've exhausted their personal resources and what's known as family-friendly funding. Family-friendly funding is the money you can raise by asking your friends and family members to either loan you the capital you need or to make an investment in your company.

However, angel investors are becoming more and more active and prevalent in the United States. According to the Center for Venture Research, there are approximately 225,000 active angel investors in the United States. But the question becomes: "How do you find these so-called angels?" Well, I guess you could wear a sign everywhere you go that says: "Looking for an angel." On second thought, that's not such a good idea. Here's a better way.

Today, more and more individual investors are joining angel investment groups. According to a survey from the Angel Capital Association, on average these groups invest a total of nearly $1.5 million annually.

Angels often invest in ideas and individuals who show passion and a strong desire to succeed. But that alone won't put money in the bank. Angels also expect you to present a solid, realistic business plan. Good financials are imperative along with high-growth potential. Because your business won't have any historical financials, the angel will require you to disclose your personal financial statements.

Additionally, if your business idea includes some sort of "barrier to entry" such as an intellectual property that will be viewed favorably as will a realistic exit strategy. Finally, if the angel invests in your business, he/she is going to hold you accountable for producing results and will most likely want a seat on your board of directors.

For more information on angel investment groups visit the Angel Capital Association at www.angelcapitalassociation.org.