Chapter 11

CDC/504 Loan Program

$1.5 mil/ $20 mil

Export Working Capital Program

($5 million max)

Regulation D (504)

- can stop to $500,000 a security to any number of investors -Provides the first exemption to accompany secondaries a small amount of Cabo from numerous investors

SBA 7(a) Loan

-Most common -Max loan amount of $5 million

(505)

-This rule permits the sale of $5 million of one registered securities in the private offering -permits no general advertising or solicitation through public media

private offering

-a formalized method for obtaining funds from private investors -faster and less costly

SBIR (phase 2)

2 years 750K

Export Express loan

500,000

SBIR (phase I)

6 months 100K

Royalty, Equity, Joint Partnership

All used in the exit stage of limited partnerships

5 C's of lending

Character, Capacity, Capital, Collateral, Conditions

Source of short term funds most frequently used by the entrepreneur

Commercial banks

Investment from Family and friends requires

Formal agreement required that talks about money involved, in terms of money, rights and responsibilities, steps to be taken in business fails

SBIR grants program

Grants from the U.S. government to small technology-based businesses

Regulation d

Laws governing a private offering

SBA Microloan - 7(m) loan program

Program provide short-term loans up to $50,000 to small businesses for working capital

Small business technology transfer

Requires partners that universities are other nonprofit institutions for disclosure reasons

504 loan program

The maximum of the program is $5 million and $5.5 million for manufacturing and energy companies

General Partner

The overall coordinating party in a partnership agreement

In an LLC

The sponsoring company acts as a general partner

limited partner

a party in a partnership agreement that usually supplies money and has a few responsibilities

factoring receivables

borrowing money secured by a firm's accounts receivable

bootstrap financing

funding a business by creatively stretching existing capital as far as possible

Research and development limited partnerships

money given to a firm for developing a technology that involves a tax shelter

debt financing

obtaining borrowed funds for the company

equity financing

obtaining funds for the company in exchange for ownership

Conventional bank loan

standard way banks lend money to companies

asset base for loans

tangible collateral valued at more than the amount of money borrowed