Alternative Venture Finance: Grants and federal loans

While most companies seeking venture capital initially on "Angel" of private equity investors and capitalists, a large source of funding for scholarships and federal loans. Federal, the two main subsidy programs Small Business Administration (SBA) and Small Business Investment Companies (SBIC). An SBA loan, regardless of whether it is a direct loan from the SBA, or, more commonly, a bank loan by the SBA, is essentially a bank loan. The advantages of the technology compared to bank lending rates. SBA rates are typically much less than other business loan prices. Alternatively, Small Business Investment Companies (SBIC) are held private company, licensed and regulated by the SBA. Small or new businesses that meet the requirements for the assumption by the program is able to receive SBIC capital and / or long-term loans to these firms. In essence, the companies equity funds from the federal government for the society in which the finance. Interestingly, the US-taxpayer SBIC benefit from a program of tax revenue from successful SBIC investments and the cost of the program. In addition, the program has hundreds of thousands of jobs. In summary, SBA and SBIC financing for sustainable financing of "Angel" investors and private equity capitalists and should be in the process of obtaining capital. How to angels and VC financing, companies, SBA and SBIC needs a strong team of financial management and value of the proposal, and very professional and convincing business plan for the capital they need.