Equity Capital Funding Sources

The Venture Capital SourceBank is here at last; entrepreneurs who are seeking equity funding now have an alternative source to locate equity capital. In the past entrepreneurs who wanted to start and grow a business, had to search endlessly for equity funding. And when the entrepreneurs wanted a venture capitalist to consider their venture capital firms business concepts for funding, they had to send business plans to strangers and comply with their funding requirements with very little input. Even though these source banks are easily accessible they will only accept applications from business owners with third party verified business models or franchises.

The Venture Capital SourceBank is a private operated venture capital referral service for small business ventures with third party verified business models. The venture capital bank uses equity funding instead of debt financing. It allows small business owners to locate equity funds in one step, instead of searching endlessly for venture capital. The venture capital source bank can offer a variety of equity funding packages to small businesses. Our Venture Capital SourceBank is a modern equity funding brokerage service. Small and home-based business owners, now have a new equity capital funding source for their Micro-Business Enterprises. Venture Capital SourceBanks will be opening in local communities to fund certified business models the network identifies.

The business development bank community has gained another equity investment source, a bill passed the 106th US Congress directing the Small Business Administration, (SBA) to administrate $30 million in technical assistance grants, guarantees, and $100 million in investment matching funds for community development venture capital funds. The New Market Tax Credit will provide 30% tax credits on a present value basis to investors in economic development programs in low-income areas; community development venture capital funds would be a major beneficiary of this credit. Credits on $1 billion of investment will be available in 2001.

The Fast Track Program also support entrepreneurs who choose debts capital in the first two phases of their business venture growth. Entrepreneurs may choose debt financing in the middle step. However, in the third phase or advance steps they must consider the use of equity financing in order to remain in the Fast Track Program. They must also build a third party verified Certified Business Model after the 2^nd stage of funding.