Match the definition with its term.
-An SBA program that provides short-term loans of up to $50,000 to small businesses and not-for-profit child-care centers
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(m) Microloan Program provides short-term loans of up to $50,000 to small businesses and not-for-profit child-care centers.

Answer: A
 The 7(a) Loan Guaranty Program is an SBA program that provides loan guarantees to lenders who make loans to small businesses.

Answer: C
 The Certified Development Company (CDC) 504 Loan Program provides long-term, fixed-rate financing to small businesses for the purchase of real estate, machinery, and other fixed assets.

Answer: D
 A community-based financial institution is a financial organization that is operated by and for a particular community, typically a low-income or underserved community.

Answer: F
 Informal venture capital refers to funding that is provided by individuals, rather than by formal venture capitalists or institutional investors.

Answer: G
 Loan covenants are provisions in a loan agreement that require the borrower to maintain certain financial ratios or to take other actions to protect the lender's interests.

Answer: H
 The Small Business Innovative Research (SBIR) Program provides funding for small businesses to conduct research and development projects that have the potential for commercialization.

Answer: I
 Small business investment companies (SBICs) are privately owned and operated investment firms that provide funding and other types of support to small businesses.

Match the Definition with Its Term