Chapter 11 Review

________ financing involves using any possible methods for conserving cash.

• Floor Planning

• Bootstrap

• Private placement

• SBIR

Small Business Innovation Research grants are funded by federal agencies, which provide a portion of their R&D funds to small businesses.

• True

• False

_______financing does not require any collateral.

• Commercial bank loan

• Line of credit

• Equity

• Character loan

Which grant program requires partners at universities or other nonprofit institutions?

• The 504 program

• Small Business Technology Transfer

• OptionThe SBA 7(a) 3

• Small Business Innovation Research

Which of the Following is a eligibility requirement for obtaining a SBA loan?

• Be a Non- Operating Business

• Organized for non-profit

• Located outside the United States

• Demonstrate a need for the desired credit

When using equity financing from family and friends:

• they can be more patient than other investors in when they expect a return on investment.

• business arrangements should be in good faith.

• details such as terms of the investment and rights of the investor need not be in writing.

• since the amount of money is usually small, they do not have an ownership position in the venture.

Who Started the SBA and what year did they start the SBA

• George Bush 1954

• John F. Kennedy 1970

• Dwight Eisenhower 1953

• Martin Luther King 1964

What are The Five C's of Credit?

The SBA guarantees all loans for 100 percent of the loan amount.

• True

• False

Briefly define debt financing and equity financing.