alternative venture finance federal grants and loans 3
While most companies seeking adventure chief initially anticipate about angel investors and adventure capitalists, a ample alternative source of financing is federal grants and loans. The two largest federal grant programs are amble by the Baby Bag Administration (SBA), and by Baby Bag Investment Companies (SBICs).

An SBA loan, regardless of whether it is a direct loan from the SBA, or, as is added accepted, a bank loan guaranteed by the SBA, is essentially a bank loan. The statement of it versus a traditional bank loan is the percentage. SBA rates are typically much less than traditional bag 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 added flexible with regards to who they action these loans. However, the SBA usually requires the founders of the company to personally guarantee the loans, which makes them risky should the adventure collapse.

Alternatively, Baby Bag Investment Companies (SBICs) are privately organized corporations that are licensed and regulated by the SBA. Baby or emerging businesses which qualify for assistance from the SBIC program can accept equity chief and/or continued-chat loans from these companies. Essentially, these companies accommodate their own chief, which is supplemented by federal funds, to the companies they fund.

Interestingly, U.S. taxpayers benefits from the SBIC program as levy revenues generated from acknowledged SBIC investments accept added than covered the cost of the program. Likewise the program has created hundreds of thousands of jobs.

In summary, SBA and SBIC financing are applicable alternatives to financing from angel investors and adventure capitalists and should be considered in the chief raising action. Similarly to angel and VC financing, companies seeking SBA and SBIC financing charge a able management accumulation and amount proposition, and a highly able and compelling bag aim in adjustment to lift the chief they charge.

About the author:
GT Bag Plans has developed over 200 bag plans for clients that accept collectively raised over $750 million in financing, launched abundant advanced product and service lines and gained competitive advantage and marketplace share. GT Bag Plans is the sister site of GT Adventure Chief





Originall posted April 26, 2012