Exam 15: Sources of Debt Financing

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Revolving loan funds (RLFs)combine private and public funds to make loans to small businesses,often at below-market interest rates.

(True/False)
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The U.S.Department of Agriculture provides financial assistance to certain small businesses through the Rural Business-Cooperative Service (RBS).The RBS program is open to:

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Explain how a small business can use factoring to raise funds.What are the advantages and dangers of this type of financing?

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How do the EDA and HUD lend money to small businesses?

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SBICs may lend up to ________% of their private capital to a single client.

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The majority of loans provided by the SBA are direct.

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The Farmers Home Administration makes direct loans to small businesses meeting the rural area criteria in order to create nonfarm employment.

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Banks focus on a small business's ability to generate a positive cash flow when lending money.

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Approximately 75% of SBA-guaranteed loans go to small businesses start-ups.

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