Here Is How You Get A Car Finance Loan Buying a car is not always that simple. Everybody knows which vehicle they prefer. To purchase this car however, means that you have to go through a procedure consisting of steps that can be a little frustrating, annoying and even humiliating. And I'm not ... Personal Finance Is Your Responsibility Whether or not you choose to ignore it, you cannot deny the truth embedded in this statement: Your personal finance is and always will be your responsibility. When it comes to finance, many people put an impractical blind eye to the fact that finances ... Refinanced Your Home – Claim A Tax Deduction For Points The mortgage refinance market has cooled off dramatically with recent rate increases. Many people, however, refinanced during 2005 and can claim tax deductions. Refinanced Your Home – Claim a Tax Deduction For Points Mortgage rates have been ...
Alternative Venture Finance: Federal Grants and Loans
While most companies seeking venture capital initially think about angel investors and venture capitalists, a large alternative source of financing is federal grants and loans. The two largest federal grant programs are run by the Small Business Administration (SBA), and by Small Business Investment Companies (SBICs).
An SBA loan, regardless of whether it is a direct loan from the SBA, or, as is more common, a bank loan guaranteed by the SBA, is essentially a bank loan. The benefit of it versus a traditional bank loan is the rate. SBA rates are typically much less than traditional business loan rates.
In most cases, in a guaranteed SBA bank loan, the SBA guarantees 90 percent of the loan will be repaid to the bank. As such, banks are at much less risk than in most other loans, and are a bit more flexible with regards to who they offer these loans. However, the SBA usually requires the founders of the company to personally guarantee the loans, which makes them risky should the venture collapse.
Alternatively, Small Business Investment Companies (SBICs) are privately organized corporations that are licensed and regulated by the SBA. Small or emerging businesses which qualify for assistance from the SBIC program can receive equity capital and/or long-term loans from these companies. Essentially, these companies provide their own capital, which is supplemented by federal funds, to the companies they fund.
Interestingly, U.S. taxpayers benefit from the SBIC program as tax revenues generated from successful SBIC investments have more than covered the cost of the program. Likewise the program has created hundreds of thousands of jobs.
In summary, SBA and SBIC financing are viable alternatives to financing from angel investors and venture capitalists and should be considered in the capital raising process. Similarly to angel and VC financing, companies seeking SBA and SBIC financing need a strong management team and value proposition, and a highly professional and compelling business plan in order to raise the capital they need.
About the Author As President of Growthink Business Plans, Dave Lavinsky has helped the company become one of the premier business plan development firms. Since its inception, Growthink has developed over 200 business plans. Growthink clients have collectively raised over $750 million in financing, launched numerous new product and service lines and gained competitive advantage and market share.
Finance News
EU says states have yet to back ¤5B stimulus plan - PR Inside BRUSSELS, Belgium (AP) - EU Commission President Jose Manuel Barroso called Wednesday on European Union governments to approve a ¤5 billion ($6.8 billion) stimulus program to upgrade energy and Internet links. Barroso said finance ministers had not ...
North Korea mobilizes 100,000 for rally - MSNBC SEOUL, South Korea - Tens of thousands of North Koreans rallied Monday in a display of might and loyalty that underscored the regime's guiding "military first" principal amid tensions with rival South Korea. The government mobilized 100,000 North ...
Greek finance minister sacked - Financial Times George Alogoskoufis, Greece’s finance minister, was sacked on Wednesday in a reshuffle prompted by deteriorating public finances and fears of continued social unrest following last month’s street riots in central Athens . He was replaced by ...
Greek PM Sacks Finance Minister In Reshuffle - Javno Greek Prime Minister Costas Karamanlis sacked his finance minister on Wednesday in a broad cabinet reshuffle to try to shore up his government's popularity, hit by riots, scandals and economic woes. Finance Minister George Alogoskoufis, criticised ...
Aberdeen, Swiss Finance exit Satyam - Business Standard Besides Aberdeen International, Satyam’s largest institutional investor, and Swiss Finance Corporation’s exit, Fidelity and Morgan Stanley too offloaded a substantial portion of their holdings in the IT firm through bulk deals on the National ...
iBank Mobile Announced: Native iPhone Application for Tracking ... - Earthtimes PUTNEY, Vt. - (Business Wire) IGG Software announces the forthcoming release of iBank Mobile, a native iPhone counterpart to iBank 3 — the market-leading personal finance alternative to Quicken on the Mac. Capable of running on both the iPhone and ...
Banking & Finance - Business World HONG KONG — Asian bond spreads narrowed to their lowest in nearly four months yesterday, with investors emboldened by the plan of US President-elect Barack Obama to spur the economy through lower taxes and more spending. The Philippines, one of ...
UPDATE 4-Greek PM sacks finance minister in reshuffle - FXStreet.com ATHENS, Jan 7 (Reuters) - Greek Prime Minister Costas Karamanlis sacked his finance minister on Wednesday in a cabinet reshuffle to try to shore up his government's popularity, hit by riots, scandals and economic woes. Finance Minister George ...
Topic: Personal Finance - CNBC If you're worried about the dramatic ups and downs in the U.S. stock market, you're not alone. Plenty of people have panicked and sold off their mutual funds, raided their bank accounts or taken other ill-considered steps they may well regret later ...
