| A | B |
|---|
| entrepreneur | individual who takes the risk of starting a new business. |
| operating costs | ongoing expenses for operating a business. |
| reserve fund | money that can be made available for the future expansion of a business. |
| private financing | borrowing money from family or friends. |
| commercial debt financing | borrowing money from a bank or other financial institution to fund a business. |
| commercial loan | loan that finances a new or ongoing business. |
| line of credit | arrangement in which bank customers can borrow a certain amount of money from the bank immediately. |
| secured loan | loan that is backed by collateral. |
| unsecured loan | loan that is not backed by collateral. |
| Small Business Administration (SBA) | an independent agency of the federal government that offers assistance to people who are starting small businesses and to those who want to expand existing business. |
| LowDoc Program | government loan program that allows businesses applying for loans of less than $150,000 to submit a one-page application with a small amount of documentation. They recieve a reply withing 36 hours. |
| business credit card | credit card that is issued to a business rather than to an individual |
| private investor | person outside an entrepreneur's circle of friends and relatives who provides funding because he or she is interested in helping a new business to succeed. |
| commercial finance company | firm that lends money only to businesses. |
| venture capital firm | company that provides private funding for small businesses that need a substantial amount of immediate cash. |
| Small Business Investment Companies (SBICs) | private investment firms that work with the SBA to provide longer-term funding for small businesses. |
