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    Sources of Funding for Healthcare Project

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    Part I and II
    Primary Sources of Funding:
    Loans:
    7(a) Loan Program
    ? CapLines
    o Line of Credit:
     Standard Asset-Based Line-Revolving line of credit for recurring and short-term debts.
     Seasonal Line-Loans to finance inventory expenses and accounts receivable during short-fall periods.
     Small Asset-Based Line-This credit line offers the potential to obtain up to a $200,000 line of credit with initial fee requirements waived.
    o Constraints:
     Regardless of whether or not the organization is successful, the organization is obligated to repay the line of credit.
     Line of credit may be difficult to obtain especially for new entrepreneurs.
     Credit restrictions may apply depending on the type of program you are using.
     May incur upfront charges and fees.
     Higher interest rates than a traditional loan or secured line of credit.
    o Resource: http://www.sba.gov/category/navigation-structure/loans-grants/small-business-loans/sba-loan-programs/7a-loan-program/special-purpose-loans-program
    ? Microloan Program: Not-for-Profit-community based small business loans for short-term and long-term loans.
    o Constraints:
     This loan can only be used as a source of working capital, and/or purchasing supplies needed for inventory.
     Borrowers are prohibited from purchasing real estate or paying off existing debt.
     Microloans will require collateral.
     Potential credit restrictions and/or obligations may apply depending on the lender.
    o Maximum Loan Amount: $50,000.
    o Resource
     http://www.sba.gov/content/microloan-program

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    https://brainmass.com/business/credit-management-credit-policy-analysis-and-risk/sources-of-funding-for-healthcare-project-390893

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    Solution Preview

    Part I and II
    Primary Sources of Funding:
    Loans:
    7(a) Loan Program
    ? CapLines
    o Line of Credit:
     Standard Asset-Based Line-Revolving line of credit for recurring and short-term debts.
     Seasonal Line-Loans to finance inventory expenses and accounts receivable during short-fall periods.
     Small Asset-Based Line-This credit line offers the potential to obtain up to a $200,000 line ...

    Solution Summary

    Part I and II
    Primary Sources of Funding:
    Loans:
    7(a) Loan Program
    ? CapLines
    o Line of Credit:
     Standard Asset-Based Line-Revolving line of credit for recurring and short-term debts.
     Seasonal Line-Loans to finance inventory expenses and accounts receivable during short-fall periods.
     Small Asset-Based Line-This credit line offers the potential to obtain up to a $200,000 line of credit with initial fee requirements waived.
    o Constraints:
     Regardless of whether or not the organization is successful, the organization is obligated to repay the line of credit.
     Line of credit may be difficult to obtain especially for new entrepreneurs.
     Credit restrictions may apply depending on the type of program you are using.
     May incur upfront charges and fees.
     Higher interest rates than a traditional loan or secured line of credit.
    o Resource: http://www.sba.gov/category/navigation-structure/loans-grants/small-business-loans/sba-loan-programs/7a-loan-program/special-purpose-loans-program
    ? Microloan Program: Not-for-Profit-community based small business loans for short-term and long-term loans.
    o Constraints:
     This loan can only be used as a source of working capital, and/or purchasing supplies needed for inventory.
     Borrowers are prohibited from purchasing real estate or paying off existing debt.
     Microloans will require collateral.
     Potential credit restrictions and/or obligations may apply depending on the lender.

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