When used in a business context, crowdfunding refers to the raising of capital by giving small equity positions in a business to many investors in exchange for cash. The JOBS Act (Jumpstart our Business Startups Act) amends US securities law to allow equity offerings to bypass SEC registration under certain circumstances. Once the rules governing the Act are implemented, the result is expected to be greater funding opportunities for small businesses.

Money, time or something of value that is awarded for a particular purpose. Generally, grants do not need to be paid back unless the recipient does not perform to the specifications of the grant.

A promise made by a person or organization other than the borrower to assume the borrower’s debt if the borrower defaults on the loan. When a loan guarantee is extended by the US Small Business Administration (SBA) or the US Department of Agriculture (USDA), the local bank’s risk is decreased and the borrower is often able to obtain a larger loan than if the bank assumed all of the risk.