Shaking the Money Tree: Selected Resources for Small Business Capital

Disclaimer

Business Reference in Public Libraries Committee
Saturday, June 16, 2001
San Francisco, CA


Selected Glossary of Terms


401(k) Financing: Financing based on tax-deferred savings in 401(k) retirement plans.

504 Loans: Long-term, fixed interest rate loans for fixed assets, such as real estate. Loans are made through Certified Development Companies (CDC). See http://www.sba.gov/financing/frcdc504.html.

7(a) Loan: One of SBA's primary lending programs. “It provides loans to small businesses unable to secure financing on reasonable terms through normal lending channels. The program operates through private-sector lenders that provide loans which are, in turn, guaranteed by the SBA.” The SBA does not distribute loans. See http://www.sba.gov/financing/fr7aloan.html.

Angel Investors: Individual investors providing venture capital.

Asset-Based Loans: Loans from commercial finance companies that are collateralized by inventory and accounts receivables.

Bank Term Loans: Traditional bank loans with fixed interest rates and a set maturity date.

Business Incubators: Places where several businesses are housed together (often in university settings). Companies receive reduced rents and shared services. More information is available from the National Business Incubation Association ( http://www.nbia.org).

Business Information Centers: Centers providing technical assistance to small businesses. BICs work in conjunction with Small Business Development Centers and SCORE.

Certified Development Companies: Nonprofit corporations set up to facilitate local economic development. CDCs work with the SBA to finance small businesses, particularly through the 504 loan program. There are about 270 CDCs in the United States.

Community Development Financial Institutions (CDFI): Institutions that provide financing to businesses in areas that need economic development. A list is available from the National Community Capital Association ( http://www.communitycapital.org).

Initial Public Offerings: The sale of equity in a company, usually through shares of common stock.

LowDoc Loans: Low documentation loans. This program offers short applications, but loans are a maximum of $150,00 and interest rates are variable. This pilot program is scheduled to run through 9/30/2001.

Microloans: An SBA program that offers small loans to small business borrowers. Loans are less than $35,000 and average about $10,000.

PRIME (Program for Investment in Microentrepreneurs Act): New program (final version was published in the Federal Register May 29, 2001) providing assistance to disadvantaged (very low income) entrepreneurs. See http://www.sba.gov/financing/frprime.html.

PRO-NET (Procurement Marketing and Access Network): Searchable database of procurement information and opportunities. See http://pro-net.sba.gov/.

Royalty Financing: Financing based on returns from future revenues.

SBA Guaranteed Loans: A loan from a bank or other financial institution that is guaranteed by the SBA up to 80%. Loans are up to ten years.

SBAExpress: Program that allows easier and faster processing of loans. Lenders process the loans themselves and loans are 50 % guaranteed by the SBA. Loans cannot exceed $150,000, but applications are processed within 36 hours. See http://www.sba.gov/financing/frfastrak.html.

Service Corps of Retired Executives (SCORE): SCORE is a nonprofit SBA partner consisting of retired executives that offer free advice and counseling to small business owners. SCORE has 389 chapters and 11,500 volunteers. See http://www.score.org.

Small Business Development Center Program: Administered by the SBA, SBDC provide assistance to current and prospective small business owners. There are currently 58 SBDCs in the U.S. A complete list is available at http://www.sba.gov/hotlist/sbdc.html.

Small Business Investment Companies: Privately owned investment firms that are licensed and regulated by the SBA. See http://www.sba.gov/INV/.


BRASS Business Reference in Public Libraries Committee

bullet Shaking the Money Tree: Selected Sources for Small Business Capital
Business Reference in Public Libraries Committee, ALA Annual Conference, June 16, 2001

Disclaimer: This publication has been placed on the web for the convenience of BRASS members. Information and links will not be updated. Posted 6 August 2001.