Definitions

A CDC is a nonprofit corporation certified and regulated by the U.S. Small Business Administration (SBA) to promote economic development within its community.

Debentures are a type of long-term debt instrument that companies and governments use to borrow money. Unlike secured loans, debentures are typically unsecured, meaning they are not backed by specific assets. Instead, they are backed only by the general creditworthiness and reputation of the issuer.

Factoring arrangements are a type of financing where a business sells its accounts receivable (invoices) to a third party, called a factor, at a discount in exchange for immediate cash.

A Merchant Cash Advance is not a loan in the traditional sense. Instead, it’s a lump-sum payment to a business in exchange for a percentage of future sales—usually credit card or daily debit/ACH sales.