Match the definition with its term.
-A loan program that helps small companies obtain financing through a guaranty provided by the SBA
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

The 7(a) Loan Guaranty Program is specifically designed to help small businesses obtain financing by providing a guaranty to lenders.

Answer: B 
 The 7(m) Microloan Program is a specific loan program that provides small loans to new or growing small businesses.

Answer: C 
 The Certified Development Company (CDC) 504 Loan Program is a loan program specifically designed to help small businesses with long-term, fixed-rate financing for major assets, such as building or equipment.

Answer: D 
 Community-based financial institutions are local lending organizations that provide small loans to small businesses in a specific area.

Answer: E 
 Formal venture capitalists are professional investors who invest large sums of money into high-growth potential businesses.

Answer: F 
 Informal venture capital refers to investments made by family and friends, rather than professional investors.

Answer: G 
 Loan covenants are agreements made between a lender and borrower that outline specific terms and conditions of a loan, such as interest rates and repayment terms.

Answer: H 
 The Small Business Innovative Research (SBIR) Program is a federal program that provides funding to small businesses for research and development projects.

Answer: I 
 Small business investment companies (SBICs) are privately owned investment companies that provide financing to small businesses.

Match the Definition with Its Term