Welcome to. “ The Future of America”. Financing. “the act of obtaining or furnishing money or capital for a purchase or enterprise” -dictionary.com. Equity vs. Debt Financing.
“The Future of America”
“the act of obtaining or furnishing money or capital for a purchase or enterprise” -dictionary.com
Equity: Money raised in exchange for a share of ownership in the business. Equity financing allows a business to obtain funds without incurring debt, or without having to repay a specific amount of money at a particular time”
Debt: borrowing money that must be repaid over a period of time, usually with interest. The lender does not gain an ownership interest in the business, and debt obligations are typically limited to repaying the loan with interest.
Loans – (typically a debt type of financing)
Tax- Exempt Bonds
Venture Capital – (Equity)
Sources:-Local commercial bank of lending institutions
Loan Programs: SBA Loans (small business admin ), Energy efficiency loans, Export assistance loans, Rural business loans, and etc…
Typical items for any small business loan application:
Legit and best place to
start finding Government Grants
I get the bond -> sell in the market to finance my business -> then I pay back the bond’s principal + interest on the bond. Advantage: NO TAX!
Seed stages: very early, early, growth
Venture Capital: cash investments in exchange for shares in the company
Congress created the Small Business Investment Companies (SBIC)
-Program to help small U.S. companies raise capital.
What is Small Business Administration loan?
Government-guaranteed loans designed to help give small businesses that may not otherwise qualify for credit get the funds they need.
Provide more flexible terms than conventional loan options (allows for longer finance term with different payment options)
Qualifying for an SBA loan is easier
You may be able to borrow up to 100% of your financing needs
Who it's for
SBA loans are for businesses that are:
Organized as a sole proprietorship, corporation, or professional partnership
Within the size guidelines designated by the SBA
Unable to secure other credit under reasonable terms
Business Ideas Discussion
We’ll be talking about Marketing