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Small Business Administration

Direct Loans

Direct loans represent a form of lending provided by the U.S. federal government. They are accessible to specific borrowers who require help in buying or refinancing a home, or in initiating or growing a small business.

LNEDC provides Direct Loans for:

  • Fixed asset acquisition or improvement

  • Purchase of equipment, furniture and fixtures

  • Inventory and working capital

  • Debt refinancing (limited)

Direct loans are a type of loan that is issued by the federal government of the United States. Direct loans are also available to certain types of borrowers who need assistance with purchasing or refinancing a home, or starting or expanding a small business.
Loan guarantees are a financial instrument used by governments or other entities to encourage lenders to provide loans to borrowers who may not otherwise be able to obtain financing. With a loan guarantee, a third party (usually a government agency or other organization) agrees to assume the responsibility for repaying the loan if the borrower is unable to do so.

Loan Guarantees

Loan guarantees serve as a financial tool employed by governments or other bodies to stimulate lenders to extend loans to borrowers who might struggle to secure financing independently. In a loan guarantee scenario, a third party, typically a government agency or another institution, commits to taking on the repayment of the loan should the borrower default.

This guarantee is capped at 50% of the total loan amount.

Equity Capital

Equity capital, sometimes referred to as shareholder's equity, is the segment of a company's total capital supplied by its proprietors or shareholders. It symbolizes the residual claim on the company's assets once all liabilities have been settled.

Equity capital holds significant value for businesses as it furnishes a long-lasting funding source that doesn't necessitate repayment like debt capital. Furthermore, a robust equity foundation can enable a company to draw investors and lenders, as it exemplifies a sound financial footing and a dedicated group of owners.

Equity capital, also known as shareholder's equity, is the portion of a company's total capital that is provided by its owners or shareholders. This form of capital represents the residual interest in the assets of the company after all of its liabilities have been paid off.
Land and equipment leasing are two types of leasing arrangements where one party (the lessor) grants the use of land or equipment to another party (the lessee) in exchange for payment.

Land & Equipment Leasing

Land and equipment leasing refer to agreements wherein one entity (the lessor) permits another entity (the lessee) to utilize land or equipment in return for payment.

These types of lease arrangements can present advantages to both involved parties. For instance, the lessee is provided access to land or equipment without the need for a substantial initial investment, whereas the lessor earns rental income from their assets. However, it's crucial for both parties to meticulously scrutinize the lease terms to ensure a mutually beneficial arrangement.

Technical Assistance

Technical assistance involves the offering of expert knowledge, guidance, and aid to individuals or entities with the aim of enhancing their understanding, proficiency, and competencies in a specific field. This kind of support can be extended by various entities including government bodies, non-profit organizations, or businesses from the private sector.

Technical assistance can manifest in numerous ways, such as educational seminars, consultative services, or mentorship programs. It serves as a tool to assist individuals or organizations in reaching particular objectives, which could range from refining business operations, deploying novel technologies, to formulating new policies or initiatives.

Technical assistance refers to the provision of expertise, advice, and support to individuals or organizations to help them improve their knowledge, skills, and abilities in a particular area. This type of assistance can be provided by a variety of sources, such as government agencies, non-profit organizations, or private sector firms.
Image by Clem Onojeghuo

Revolving Loan Program

A revolving loan program is a financing structure that allows borrowers to borrow from, repay, and then reborrow from a pool of funds as needed. Often leveraged by governmental bodies, non-profit organizations, and lending institutions, this kind of program is a continuous source of funding for businesses, individuals, or diverse organizations.

Jobs creation through a Revolving Loan Program for small businesses.

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