When used in a business context, crowdfunding refers to raising capital by giving small equity positions in a business to many investors in exchange for cash. Crowdfunded money can also be raised by offering a new or exclusive product, rather than ownership in the company, in exchange for cash. Crowdfunding is typically conducted on a website such as Kickstarter.

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.