A Sleep Health Startup in Chicago Needed Flexible Funding, We Got Them SBA and Credit

The Business

DrLullaby is a sleep health startup based in Chicago, Illinois. The company is owned and operated by a Board-Certified Sleep Specialist and develops technology-enabled treatments for insomnia.

As a younger firm in startup mode, DrLullaby combined medical expertise with digital innovation. Their vision was to scale a platform that could deliver sleep therapy to patients more effectively through an app. But growth in healthcare technology requires more than ideas. It requires capital.

The Challenge

DrLullaby had ambitious growth targets but faced the financial barriers common to early-stage firms. As a newer business with less than perfect financials, they were not in a position to secure a conventional bank loan.

The company had two distinct needs. First, they required efficient access to a working capital line to cover everyday expenses and smooth out cash flow. Second, they needed a larger term loan that could be amortized over several years to continue building their digital product.

Traditional lenders did not offer a flexible package that met both needs. Without reliable funding, DrLullaby risked slowing development, missing milestones, and delaying their expansion into a growing health-tech market.

They needed more than a lender. They needed a funding partner who understood the realities of startups and could structure financing to support both stability and long-term growth. That’s when they turned to Small Business Funding.

The Solution

At Small Business Funding, we specialize in helping small businesses access the right financing tools. For DrLullaby, this meant identifying solutions that would give them both short-term flexibility and long-term support.

We sourced two complementary options:

• A $100,000 Line of Credit to provide ongoing working capital and cover day-to-day operating expenses.
• A $150,000 SBA-backed 7(a) Term Loan to finance product development and scale their technology platform.

This dual approach ensured that DrLullaby could manage cash flow while also investing in their future. The line of credit created breathing room for operations, while the SBA-backed business loan gave them the resources to make key hires and advance their app development.

By combining immediate access to funds with structured long-term financing, we removed the funding barrier that had been holding them back.

The Results

With funding in place, DrLullaby was able to:

• Cover daily expenses without disrupting operations.
• Smooth out cash flow during uneven revenue periods.
• Hire an additional developer to accelerate app development.
• Continue building their digital product with confidence.

This structure gave them stability for the present and momentum for the future. Instead of struggling to find capital, they could focus on growth, patient outcomes, and innovation in sleep health.

Access to both a working capital line and a long-term SBA loan provided the balance they needed. One gave flexibility. The other built a foundation for expansion. Together, they created a path for DrLullaby to keep scaling.

Today, the company has not only stabilized but also expanded. With their platform growing, they are now preparing for a larger debt facility to support the next phase of growth. The progress made possible by the right funding has positioned DrLullaby to expand both its technology and its impact in healthcare.

Customer Confidence

For DrLullaby, working with Small Business Funding was about more than dollars. It was about finding a partner who could understand the dual challenges of a startup and match them with financing that worked.

Their story is proof that even new businesses with limited financial history can secure structured funding when guided by the right consultant.

DrLullaby now has both the resources to grow and the reassurance that Small Business Funding has the expertise to navigate complex financing needs. As they move forward, they do so with confidence that their funding partner can support their expansion.