Match the definition with its term.
-A lender that uses funds from federal, state, and private sources to provide financing to small businesses in low-income communities
A)7(a) Loan Guaranty Program
B)7(m) Microloan Program
C)Certified Development Company (CDC) 504 Loan Program
D)community-based financial institution
E)formal venture capitalists
F)informal venture capital
G)loan covenants
H)Small Business Innovative Research (SBIR) Program
I)small business investment companies (SBICs)

Question

Quizplus · Accepted Answer

A community-based financial institution uses funds from federal, state, and private sources to provide financing to small businesses in low-income communities.

Answer: C 
 A Certified Development Company (CDC) 504 Loan Program is a type of loan program that is designed for small businesses in low-income communities.

Answer: I 
 Small business investment companies (SBICs) are lenders that provide financing to small businesses using funds from federal, state, and private sources.

Answer: B 
 The 7(m) Microloan Program is a loan program that provides financing to small businesses in low-income communities.

Answer: E 
 Formal venture capitalists are investors who provide funding to start-up and early-stage companies in exchange for equity.

Answer: F 
 Informal venture capital refers to funding provided by friends, family members, or other personal contacts to start-up or small businesses.

Answer: G 
 Loan covenants are terms and conditions that a borrower agrees to as part of a loan agreement, which can include financial performance targets, restrictions on borrowing or spending, and other requirements.

Answer: H 
 The Small Business Innovative Research (SBIR) Program is a program that provides funding to businesses that are developing innovative products or technologies.

Answer: A 
 The 7(a) Loan Guaranty Program is a loan program that provides financing to small businesses, with the government guaranteeing a portion of the loan to reduce the lender's risk.

Match the Definition with Its Term