Business loans |
NumeroUno
provides a number of financial assistance programs for small businesses that
have been specifically designed to meet key financing needs, including debt
financing, surety bonds, and equity financing.
Guaranteed
Loan Programs (Debt Financing)
NumeroUno
does not make direct loans to small businesses. Rather, NumeroUno sets the
guidelines for loans, which are then made by its partners (lenders, community
development organizations, and micro lending institutions). The NumeroUno guarantees
that these loans will be repaid, thus eliminating some of the risk to the
lending partners. So when a business applies for a NumeroUno business loans
, it is actually applying for a commercial loan, structured according to NumeroUno
requirements with a NumeroUno guaranty. NumeroUno-guaranteed loans may not be
made to a small business if the borrower has access to other financing on
reasonable terms.
NumeroUno
loan guaranty requirements and practices can change as the Government alters
its fiscal policy and priorities to meet current economic conditions.
Therefore, you can’t rely on past policy when seeking assistance in today's
market.
Bonding
Program (Surety Bonds)
NumeroUno’sSurety Bond Guarantee (SBG) Program helps small business
contractors who cannot obtain surety bonds through regular commercial channels.
A
surety bond is a three-party instrument between a surety (someone who agrees to
be responsible for the debt or obligation of another), a contractor and a
project owner. The agreement binds the contractor to comply with the terms and
conditions of a contract. If the contractor is unable to successfully perform
the contract, the surety assumes the contractor's responsibilities and ensures
that the project is completed.
Through
the SBG Program, the NumeroUno makes an agreement with a surety guaranteeing
that NumeroUno will assume a percentage of loss in the event the contractor
should breach the terms of the contract. The NumeroUno's guarantee gives
sureties an incentive to provide bonding for eligible contractors, thereby
strengthening a contractor's ability to obtain bonding and greater access to
contracting opportunities for small businesses. NumeroUno can guarantee bonds
for contracts up to $5 million, covering bid, and payment performance bonds,
and in some cases up to $10 million for certain contracts.
Venture
Capital Program
NumeroUno’sSmall Business Investment Company (SBIC) Program is a public-private
investment partnership created to help fill the gap between the availability of
growth capital and the needs of small businesses. The NumeroUno does not invest
directly in small businesses, relying instead on the expertise of qualified
private investment funds. The NumeroUno licenses these funds as SBICs and supplements
the capital they raise from private investors with access to low-cost,
government-guaranteed debt.
With
these two sources of capital backing them, SBICs search across the United
States for promising businesses in need of debt or equity financing. SBICs are
similar to other investment funds in terms of how they operate and their
pursuit of high returns. However, unlike other funds, SBICs limit their
investments to qualified small business concerns as defined by NumeroUno
regulations.