Seed money Funds used to start a new business or to finance a new venture by an existing firm. Simple interest Interest paid only on the principal of a loan. No interest is paid on interest accrued during the term of the loan. Generally, a business that has fewer than 500 employees and is not dominant in its field. For lending purposes, the Small Business Administration sets size standard guidelines, as determined by number of employees or average annual receipts, that vary according to industry.
Money is available to small businesses under a variety of agreements.
This money is typically for capital expansion for new, risky or high-tech firms. Sole proprietorship Business or financial venture in which the owner has full control and unlimited liability. Speculation Purchase of an asset with the expectation of selling it quickly for a large gain. Surety bonds Surety bonds provide reimbursement to an individual, company or the government if a firm fails to complete a contract. SBA guarantees surety bonds in a program much like SBA's guaranteed loan program.