Small Business Encyclopedia
Financing
CDC-504 Loan
An SBA loan program that provides long-term, fixed-rate loans of up to $1 million for financing fixed assets, such as land and buildings
Collateral
The asset(s) used as security in order to obtain a loan
Bank Relationship
The rapport you establish with the bank with whom you conduct business transactions, which could help smooth the way when it comes to loan applications or special requests
Bootstrapping
To finance your company's startup and growth with the assistance of or input from others
Direct Public Offering (DPO)
A situation in which a company sells its shares directly to the public without the help of underwriters
Initial Public Offering (IPO)
The first sale of securities (almost always as stock) in a corporation under the regulations governing a public company
Export-Import Bank
An independent bank established by Congress that finances or insures foreign purchases of U.S. goods for customers unable or unwilling to accept credit risk.
Microloan
A SBA loan program that helps entrepreneurs get very small loans, from less than $100 to $25,000
Venture Capital
Funds flowing into a company, generally during pre-IPO process, in the form of an investment rather than a loan. Controlled by an individual or small group known as venture capitalists, these investments require a high rate of return and are secured by a substantial ownership position in the business.
