Economics: Today and Tomorrow © 2012

"Show Me the Money"

Introduction
Small business owners can discover ways to raise startup money, expansion money, and venture capital for their businesses—all without ever leaving their computer terminals! Financing resources are accessible through the Internet, and using the Web in the search for funds can save the entrepreneur a great deal of time, effort, and maybe even income. Imagine you are a small business owner who is in need of capital to expand the business. Start at the Entrepreneur Magazine Web site to explore how the Internet can help you meet your financing needs.

Destination Title: Entrepreneur Magazine Web site

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Directions
Start at the Entrepreneur Magazine Web site.

• Click on the "Money" tab on the left side of the page.
• Click on "Financing" along the top.
• Click on the "Getting Started" topic.
• Read through the site, taking notes as you go. Be sure to read through the "Choosing a Business Loan Type," "Choosing the Best Funding Strategy for You," and "First Line of Financing" topics in the site to complete your research.

1			What is an SBA loan? What does "SBA" stand for?
2			What is a line-of-credit loan?
3			What is the general difference between equity financing and debt financing?
4			What is the "price of money" and why should it always be lower than the return you expect your business to generate?
5			Describe five issues someone should consider when thinking about financing a new business.