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INCUBATOR
A facility designed to encourage entrepreneurship and minimize obstacles to new business formation and growth, particularly for high technology firms, by housing a number of fledgling enterprises that share an array of services. These shared services may include meeting areas, secretarial services, accounting services, research libraries, on-site financial and management counseling and word processing facilities.
INDEMNITY
Obligation of one party to reimburse another party for losses, which have occurred, or which may occur.
INDEPENDENT AND QUALIFIED PUBLIC ACCOUNTANTS
Public accountants are independent when neither they nor any of their family has a material, direct or indirect financial interest in the borrower other than as an accountant. They are qualified, unless there is contrary evidence, when they are either (1) certified, licensed, or otherwise registered if so required by the state in which they work, or (2) have worked as a public accountant for at least five years and are accepted by SBA.
INDUSTRIAL REVENUE BOND (IRB)
A tax-exempt bond issued by a state or local government agency to finance industrial or commercial projects that serve a public good. The bond usually is not backed by the full faith and credit of the government that issues it, but is repaid solely from the revenues of the project and requires a private sector commitment for repayment.
INNOVATION
Introduction of a new idea into the marketplace in the form of a new product or service, or an improvement in organization or process.
INSOLVENCY
The inability of a borrower to meet financial obligations as they mature, or having insufficient assets to pay legal debts.
INTEREST
Capital paid a lender for the use of funds.
INVERSE ORDER OF MATURITY
When payments are received from borrowers that are larger than the authorized repayment schedules the overpayment is credited to the final installments of the principal, which reduces the maturity of the loan and does not affect the original repayment schedule.
INVESTMENT BANKING
Businesses specializing in the formation of capital. This is done by outright purchase and sale of securities offered by the issuer, standby underwriting or "best efforts selling."
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