Sources of Funding at all Levels

Traditional Lenders
A private, public or institutional entity which makes funds available to others to borrow. Examples are Chase, BofA and Wachovia. Microloans

Microloans
A SBA loan program that helps entrepreneurs get very small loans, from less than $100 to $25,000 Microloans from the SBA can be used for machinery and equipment, furniture and fixtures, inventory, supplies and working capital, but can't be used to pay existing debts. Microloans are administered through nonprofit intermediaries using SBA funds. Terms are usually short, and application turnaround time is less than a week. These organizations receive loans from the SBA and then turn around and make loans to entrepreneurs. The intermediaries will often walk you through writing your business plan and taking inventory of your business skills.

Investment Angels
An individual who provides capital to one or more startup companies. The individual is usually affluent or has a personal stake in the success of the venture. Such investments are characterized by high levels of risk and a potentially large return on investment.

Angel Investor
Keep the following in mind when crafting your pitch to investor angels: When angels reject a potential investment, it's typically because 1) they don't know the key people well enough or 2) they don't believe the owner and management have the experience and talent to succeed. Definition: An individual who invests his or her own money in an entrepreneurial company Originally a term used to describe investors in Broadway shows, "angel" now refers to anyone who invests his or her money in an entrepreneurial company (unlike institutional venture capitalists, who invest other people's money). Angel investing has soared in recent years as a growing number of individuals seek better returns on their money than they can get from traditional investment vehicles. Contrary to popular belief, most angels are not millionaires. Typically, they earn between $60,000 and $100,000 a year. Which means there are likely to be plenty of them right in your own backyard.

Venture Capital
Funds made available for startup firms and small businesses with exceptional growth potential. Managerial and technical expertise are often also provided. also called risk capital.