1. “The Future of America”
Welcome to
“The Future of America”

2. Financing
“the act of obtaining or furnishing money or capital for a purchase or enterprise” -dictionary.com

3. Equity vs. Debt Financing
Equity: Money raised in exchange for a share of ownership in the business. Equity financing allows a business to obtain funds without incurring debt, or without having to repay a specific amount of money at a particular time”
Debt: borrowing money that must be repaid over a period of time, usually with interest. The lender does not gain an ownership interest in the business, and debt obligations are typically limited to repaying the loan with interest.

4. Loans & Grants Loans – (typically a debt type of financing) Grants
Tax- Exempt Bonds
Venture Capital – (Equity)

5. Small Business Loans
Sources:-Local commercial bank of lending institutions -Government-backed Loan Loan Programs: SBA Loans (small business admin ), Energy efficiency loans, Export assistance loans, Rural business loans, and etc…

6. Small Business Loans
Typical items for any small business loan application:
Loan application form
Personal Background
Resumes
Business plan
Personal credit report
Business credit report
Income tax returns
Financial Statements
Bank Statements
Accounts receivable and accounts payable
Collateral
Legal Documents

7. start finding Government Grants
Federal government does not provide grants for starting and expanding a business 
Grants from the federal government are only available to non-commercial organizations, such as non-profits and educational in areas such as medicine, education, scientific research and technology development.
Legit and best place to
start finding Government Grants

8. Tax- Exempt Bonds
Tax-exempt bonds are debt securities issued by a state or local government development agency on behalf of a private business. Once issued, tax-exempt bonds are soled in the open market or purchased by investors or financial institutions. Interest income earned by the bond purchaser is exempt from state and local taxes, which allows the lender to pass savings to the borrower in the form of lower interest rates.
Tax-exempt bonds are similar to conventional loans. Bonds are not grants. Borrowers have to pay back the bond’s principal plus interest to the bond.
I get the bond -> sell in the market to finance my business -> then I pay back the bond’s principal + interest on the bond. Advantage: NO TAX!

9. Seed and Venture Capital
Seed stages: very early, early, growth
Venture Capital: cash investments in exchange for shares in the company
Congress created the Small Business Investment Companies (SBIC)
-Program to help small U.S. companies raise capital.

10. SBA Financing What is Small Business Administration loan?
Government-guaranteed loans designed to help give small businesses that may not otherwise qualify for credit get the funds they need.
Provide more flexible terms than conventional loan options (allows for longer finance term with different payment options)
Qualifying for an SBA loan is easier
You may be able to borrow up to 100% of your financing needs

11. SBA Financing Who it's for SBA loans are for businesses that are:
Owner-operated
For profit
Organized as a sole proprietorship, corporation, or professional partnership
Within the size guidelines designated by the SBA
Unable to secure other credit under reasonable terms

12. Today’s Activity Business Ideas Discussion Shark Tank?
Weekly Dose:
Business Ideas Discussion
Shark Tank?

13. Some Useful Sources http://www.mbda.gov/?section_id=3

14. 10/27/2011 We’ll be talking about Marketing
Next Meeting
10/27/2011
We’ll be talking about Marketing