A retirement savings plan sponsored by an employer that allows employees to save and invest a portion of their paycheck before taxes are deducted. 

Alternative lending provides borrowers with access to capital outside of traditional financial institutions like banks. This can be particularly beneficial for individuals or businesses that may not qualify for loans through traditional channels due to factors like credit history, income level, or collateral requirements.

Proper accounting is essential for small businesses to track income, expenses, profits, and losses accurately. It involves tasks such as bookkeeping, budgeting, financial reporting, and tax compliance. Sound accounting practices provide valuable insights into the financial health of the business.

Alternative investments do not fall within traditional asset classes like stocks, bonds, or cash. Instead, they employ a variety of strategies, including long-short equity, global macro, event-driven, and arbitrage, among others, to generate returns. Most hedge funds are considered alternative investments.

The process of gradually repaying both the principal and interest over the loan term through regular installment payments.

The APR represents the annual cost of borrowing money, expressed as a percentage. It includes both the interest rate and any fees associated with the loan or credit.

Arbitrage is the process of exploiting price differences of identical or similar financial instruments in different markets or forms. The goal is to buy low in one market and sell high in another, thus capturing the price differential as profit.

Anything of value owned by an individual, business, or entity with some kind of economic value. Examples include cash, investments, real estate, and vehicles. Understanding your assets and how to manage them is essential in finance.

Assets under management (AUM) is a key metric used in the finance industry to measure the total market value of assets that a financial institution or investment manager oversees on behalf of their clients. These assets can include various investments, such as stocks, bonds, mutual funds, exchange-traded funds (ETFs), real estate, and other securities.

Loan Mantra’s proprietary financial technology platform enables borrowers, lenders, vendors, and partners to work together in real-time with maximum transparency, security, and efficiency. For more information, visit here (link to “Powered by BLUE” news article)

A large payment due at the end of a loan term to cover the remaining balance.

The billing cycle is the time between one credit card statement and the next. It typically lasts about 30 days. Understanding your billing cycle is important for managing your credit card payments and avoiding late fees.

The first and most well-known cryptocurrency, often referred to as digital gold.

A decentralized, distributed ledger that records transactions across a network of computers. It is the underlying technology for most cryptocurrencies.

A short-term loan used to bridge a financing gap, often used in commercial real estate for quick acquisitions or to secure long-term financing.

A financial plan that outlines expected income and expenses over a specific period, helping business and individuals manage and control finances and allocate resources effectively.

The process by which businesses can obtain official certification as minority-owned or women-owned through programs such as the Minority Business Enterprise (MBE) and Women Business Enterprise (WBE) certifications. 

A detailed document outlining the business’s operations, financial projections, and plans for utilizing resources. It serves as a roadmap for owners, helping them define their target market, understand their competition, allocate resources, and plan for growth. A well-crafted business plan is crucial for securing funding and guiding the business toward success. 

A nonprofit corporation that partners with the SBA and participating lenders to provide financing through the 504 Loan Program. 

CDFIs are financial institutions dedicated to providing affordable financial products and services to underserved communities and populations. They focus on addressing the financial needs of low-income individuals, minorities, small businesses, and communities lacking access to traditional banking services. They offer a range of financial products and services, including loans, investments, financial education, and technical assistance. 

Capacity measures the borrower’s ability to repay the loan. 

Capital is typically defined as the cash or liquid assets being held or obtained for expenditures or even the entirety of company’s assets with monetary value. Capital also represents a borrower’s financial stake in an investment. It includes the down payment or equity the borrower is willing to contribute. 

A lending approach that focuses on the borrower’s cash flow and ability to generate future income to repay the loan, rather than relying heavily on collateral. 

In finance and credit, this refers to the borrower’s reputation and credit history. Lenders assess whether the borrower has a history of repaying debts on time and in full. 

Assets pledged by the borrower to secure the loan. If the borrower defaults, the lender can seize and sell the collateral to recover losses. 

A loan provided to businesses for various purposes, such as expansion, working capital, or equipment purchase. 

Any income-producing real estate that is used for business purposes; for example, offices, retail, hotels, and apartments. 

A commercial real estate loan is a mortgage secured by a lien on commercial property as opposed to residential property. It is a tailored financial loan type for those acquiring or leasing commercial properties. 

Compound interest is the interest earned on the initial principal and accumulated interest from previous periods. It is a powerful concept in finance because it allows investments to grow exponentially over time. 

Conditions refer to the economic and industry-specific factors that may affect a borrower’s ability to repay the loan. Some conditions may include interest rates, industry trends, and economic climate.  

Access to government and private sector contracts set aside for minority-owned and women-owned businesses to promote diversity and inclusion in procurement. 

Conditions or restrictions outlined in the loan agreement that the borrower must adhere to. Examples include financial performance ratios or limitations on additional debt. 

A loan with fewer restrictive covenants provides more flexibility for the borrower. It is commonly seen in middle market lending. 

The ability of an individual or organization to obtain goods or services before payment, based on an agreement to pay later. 

A credit score is a numerical representation of a person’s creditworthiness. It is based on credit history and other financial behavior. The most widely used credit score is the FICO score, which ranges from 300 to 850. 

Creditworthiness is a measure of how likely you will default on your debt obligations according to a lender’s assessment, or how worthy you are to receive new credit. 

Using the same collateral to secure multiple loans. It is a strategy in middle market lending to enhance the lender’s security position. 

A digital or virtual currency that uses cryptography for security and operates on decentralized networks based on blockchain technology. 

Providing excellent customer service is key to building strong relationships with customers and fostering loyalty. Small businesses thrive on positive word-of-mouth, repeat business, and referrals, all of which are enhanced by exceptional customer service. Listening to customer feedback, addressing concerns promptly, and going an extra step to meet their needs are essential for long-term success. 

Debt is something, usually money, owed by one party to another. Debt is used by many individuals and companies to make large purchases they could not afford otherwise. Unless a debt is forgiven by the lender, it must be paid back, typically with added interest. The most common type of debt is a loan.  

A measure of a business’s ability to cover its debt obligations, calculated as operating income divided by debt payments. 

The debt-to-income ratio is a measure of how much of your monthly income goes toward paying debts. Lenders use this ratio to assess your ability to manage additional debt responsibly. 

The distribution of control and decision-making across a network of participants, as opposed to being controlled by a single entity. Decentralized Finance (DeFi) is an emerging financial technology that challenges the current centralized banking system. 

Failure to meet the terms of the loan agreement, such as missing payments or violating covenants. 

Alternative lending is often facilitated through digital platforms, including online marketplaces, peer-to-peer lending platforms, and crowdfunding websites. These platforms streamline the lending process, allowing borrowers to apply for loans, receive funding, and manage their accounts online, often with faster approval times and more transparent terms compared to traditional lenders. 

Businesses owned by individuals with disabilities. 

Investors employ diverse strategies across various asset classes and geographies to reduce risk and enhance returns. By spreading investments across different opportunities, funds achieve a more stable and consistent performance over time. 

A payment made by a corporation to its shareholders, usually as a share of the company’s profits. 

A measure of a company’s operating performance, commonly used in middle market lending to assess its ability to generate cash flow. 

An investment fund traded on stock exchanges, holding assets such as stocks, commodities, or bonds. 

Entrepreneurship is the spirit of innovation, risk-taking, and perseverance that drives small business owners to pursue their dreams and bring their ideas to life. Successful entrepreneurs possess qualities such as creativity, fortitude, and resilience. 

An evaluation of a property’s environmental conditions, often required in commercial real estate transactions to identify potential environmental risks. 

These are the three major credit reporting agencies in the United States. They gather and maintain credit information on individuals, which is used to calculate credit scores. The Loan Mantra platform connects with these credit agencies to pull credit reports.  

The ownership interest in an asset or company, calculated as the difference between assets and liabilities. 

The amount of capital the business owner contributes to the project, usually required for SBA loans. 

A platform where users can buy, sell, and trade currencies. 

FICO, or Fair Isaac Corporation, is a data analytics company that developed one of the most widely used credit scoring models. FICO scores are used by lenders to assess credit risk. 

Various federal programs, such as the 8(a) Business Development Program and the Women-Owned Small Business (WOSB) Federal Contracting Program, designed to help small businesses owned by minorities or women compete for government contracts. 

The Federal Reserve’s primary responsibility is to keep the U.S. economy stable by managing the supply of money in circulation. 

Effective financial management involves managing cash flow, budgeting, controlling expenses, securing financing when needed, and ensuring compliance with tax laws and regulations. Small business owners must understand their financial statements, monitor key financial metrics, and make strategic decisions to optimize financial performance. 

 Financial markets are platforms where buyers and sellers trade financial assets such as stocks, bonds, currencies, and commodities. They play a crucial role in allocating capital efficiently within the economy. 

Alternative lending is often associated with financial technology (fintech) innovation. Fintech companies leverage data analytics, machine learning, and automation to assess credit risk, underwrite loans, and facilitate transactions more efficiently than traditional banks. This technological innovation enables alternative lenders to reach a broader audience, streamline operations, and offer innovative financial products and services. 

Regular, predictable expenses that do not change with the level of production or sales, such as rent and insurance.

A mortgage with a stable interest rate that remains unchanged throughout the loan term. 

The grace period is the time between the end of a billing cycle and the due date for the payment. During this period, you can pay your balance in full without incurring interest charges. 

Financial assistance or support provided to minority-owned and women-owned businesses, often through government agencies, non-profit organizations, or private entities. 

GDP is the total value of all goods and services produced within a country’s borders in a specific period. It is a key indicator of economic health and growth. 

Total income before deductions and taxes. 

Developing growth strategies is essential for small businesses to expand their customer base, increase revenue, and scale operations over time. This may involve strategies such as diversifying products or services, entering new markets, forming strategic partnerships, or acquiring competitors.  

A promise by a person or entity to be responsible for the debt if the borrower defaults. Personal guarantees are common in commercial real estate lending. 

The SBA’s commitment to repay a portion of the loan if the borrower defaults. It reduces the lender’s risk. 

A fee paid by the borrower to the SBA to guarantee a portion of the loan. The fee varies based on the loan amount and term. 

A hard inquiry occurs when a lender checks your credit report as part of the decision-making process for a loan or credit application. Multiple hard inquiries in a brief period can impact your credit score. 

A short-term, high-interest loan secured by the value of the property rather than the borrower’s creditworthiness. Borrowers should exercise all other options before entering into this type of loan agreement.  

A strategy to minimize the risk of adverse price movements in assets or liabilities. 

Hedge funds are investment funds that pool capital from accredited investors and use various strategies, including leverage and derivatives, to generate returns. They typically have more flexibility and can invest in a wider range of assets compared to mutual funds. 

A program that helps small businesses in urban and rural communities gain preferential access to federal procurement opportunities. 

A tax-advantaged retirement savings account that individuals can contribute to, typically used to invest in stocks, bonds, mutual funds, or other assets. 

The rate at which the general level of prices for goods and services rises, leading to a decrease in purchasing power. 

Installment credit involves borrowing a fixed amount of money and repaying it in equal monthly installments over a specified period. Examples include auto loans and mortgages. 

An agreement between two or more creditors, which outlines their respective rights and priorities in the event of default by the borrower. 

The price you pay to borrow money, or the return earned on an investment. 

The cost of borrowing, expressed as a percentage of the loan amount. It can be fixed or variable. 

A loan where the borrower pays only the interest for a specified period, typically the initial years of the loan term. 

The job market refers to the supply and demand for labor. Factors such as unemployment rates, job growth, and wages impact an individual’s earning potential and the general economic climate. 

A joint account is a credit account shared by two or more individuals. Each person is equally responsible for the debt incurred on the account. 

Collaborative partnerships between minority-owned or women-owned businesses and larger companies to pursue and fulfill contracts, combining resources and capabilities. 

Payments made by a tenant to a landlord to secure a lease, often in addition to rent. 

Quantifiable metrics are used to evaluate the success of an organization, project, or individual. 

 Keynesian economics is a school of thought named after economist John Maynard Keynes. It emphasizes the role of government intervention in managing aggregate demand to achieve economic stability and growth. 

Know Your Client (KYC) are standards used in the financial services industry to verify customers and know their risk and financial profiles. 

Knowledge of your credit report, credit score, and credit terms is crucial. Regularly reviewing your credit report helps you identify errors and understand your financial standing. 

Businesses owned by individuals who identify as lesbian, gay, bisexual, or transgender. 

Making payments on time is crucial for maintaining a good credit history. Late or overdue payments can negatively impact your credit score and result in late fees. 

A record of transactions maintained within a financial system or on a blockchain. 

Leverage involves using borrowed funds to amplify potential returns on investments. While leverage can magnify gains, it also increases the risk of losses, making it a crucial consideration for investors.  

A type of financing that involves using a significant amount of debt to fund a business’s operations or expansion. It often plays a role in middle market lending. 

Debts or obligations owed by an individual, business, or entity. 

An arrangement allowing a borrower to access a predetermined amount of funds on an as-needed basis. 

The SBA’s commitment to repay a portion of the loan if the borrower defaults. It reduces the lender’s risk. 

The process of involving multiple lenders to share the risk and financing of a single borrower, commonly seen in middle market lending for larger transactions. 

The ratio of the loan amount to the appraised value of the collateral. It assesses the risk associated with the loan. 

The date when a loan or other financial instrument becomes due for repayment. 

A hybrid of debt and equity financing, typically involving subordinated debt and equity components. Mezzanine financing is often used by middle market companies for expansion or acquisition. 

A program providing small loans (up to $50,000) to small businesses through nonprofit community-based organizations. 

Refers to companies that fall between small businesses and large corporations in terms of revenue, assets, and market capitalization. 

The minimum payment is the smallest amount you must pay on your credit card balance to remain in good standing. While paying the minimum keeps your account current, it may result in accruing interest and a longer repayment period. 

Businesses owned by individuals who are U.S (United States) citizens and belong to one or more minority groups. The U.S. federal government recognizes the following minority groups: African American, Hispanic American, Native American, Asian Pacific American, and Subcontinent Asian American. 

An investment vehicle that pools money from many investors to invest in a diversified portfolio of stocks, bonds, or other securities. 

Certifying agency for minority-owned enterprises for U.S. business.  

Total income after deducting expenses, taxes, and other deductions. 

The total income generated by a property minus its operating expenses, excluding debt service. 

A loan where the lender’s claim is limited to the collateral, and the borrower’s personal assets are protected 

A one-time fee charged by the lender for processing a new loan application. 

A deficit in a bank account caused by drawing in more money than is available. 

The Paycheck Protection Program is implemented through the Federal CARES Act by the SBA and Treasury Departments. The program provided small businesses with funds to pay up to 8 weeks (about 2 months) of payroll costs including benefits. Funds could also be used to pay interest on mortgages, rent, and utilities. 

A promise by an individual, often the business owner, to personally repay the loan if the business cannot meet its obligations. 

A collection of financial assets such as stocks, bonds, and cash held by an individual or institution. 

A fee charged for repaying the loan before the scheduled maturity date. Some loans have restrictions on early repayment. 

The initial amount borrowed, excluding interest and fees.

Investment capital provided to middle market companies by private equity firms. This often involves taking an ownership stake in the company. 

Policies adopted by government agencies and corporations to actively seek and include minority-owned and women-owned businesses in their procurement processes. 

Financial ratios used by lenders to evaluate a borrower’s ability to afford a commercial real estate loan, including debt-to-income and loan-to-value ratios. 

Evaluation of non-quantifiable factors, such as management quality or brand reputation, in financial decision-making. 

A loan where the lender can seize both the collateral and the borrower’s personal assets in the event of default. 

The agreed-upon schedule for repaying the SBA loan, including interest rates, monthly payments, and the loan term. 

A measure of the profitability of an investment, calculated as the gain or loss relative to the initial investment. 

Small Business Administration, a U.S. government agency that provides support to small businesses, including loan programs. 

A program providing long-term, fixed-rate financing for the acquisition of fixed assets, such as real estate and equipment. 

The primary and most flexible SBA loan program, offering general-purpose loans for small businesses. 

The Fee Disclosure Form outlining the fees associated with the SBA loan. 

The Borrower Information Form that must be completed as part of the SBA loan application process. 

A financial institution authorized by the SBA to offer and administer SBA loans. 

A loan guaranteed by the U.S. Small Business Administration (SBA) to support small business financing. 

Various loan programs offered by the SBA, including the 7(a) Loan Program, 504 Loan Program, and others, each designed to meet different business needs. 

The process of pooling and bundling loans into securities, often seen in commercial mortgage-backed securities (CMBS). 

Criteria set by the SBA to define what constitutes a small business based on industry and annual revenue. 

Ownership in a corporation, representing a claim on part of the corporation’s assets and earnings. 

A public market for the trading of company stocks and other securities. 

The act of placing one loan behind another in priority for repayment. 

A legal agreement that establishes the priority of different debt obligations. Subordinated debt ranks below other debts in repayment. 

Corporate initiatives that promote the inclusion of minority-owned and women-owned businesses as suppliers in the supply chain. 

The duration of the loan, specifying when it will be repaid in full. 

Insurance that protects lenders and property buyers against losses related to defects in the property title. 

A unit of value issued by a project during an Initial Coin Offering (ICO). Tokens can represent various assets or rights within a blockchain ecosystem. 

Government-issued debt securities with fixed interest rates and maturity dates. 

The U.S. Treasury manages all money coming into the government and paid out by it. 

The process of evaluating and assuming risk for a financial institution, such as an insurance company or investment bank. 

The specific purposes for which the SBA loan funds can be used, outlined in the loan agreement. 

The percentage of unoccupied space in a commercial property, which can impact its income potential. 

Expenses that vary proportionally with the level of production or sales, such as raw materials or labor. 

A form of private equity and type of financing where investors provide capital to startup companies and small businesses that are believed to have strong long-term growth potential. 

Businesses that are majority-owned and controlled by veterans of the U.S. Armed Forces. 

The degree of variation of a trading price series over time.  

A digital or physical tool that allows users to store and manage their cryptocurrency holdings and interact with the blockchain. 

A financial instrument that gives the holder the right to buy company stock at a predetermined price. 

Certifying agency for women-owned businesses in the U.S. 

Businesses that are majority-owned (at least 51%) and controlled by one or more women. 

The capital used in day-to-day trading operations, calculated as current assets minus current liabilities. 

Negotiations between lenders and borrowers to restructure a loan when the borrower is facing financial difficulties. 

A currency used in transactions outside its country of issue. 

The income generated by an investment, typically expressed as a percentage of the investment’s value. 

A prepayment penalty that ensures the lender receives a certain yield when the borrower pays off a loan early. 

A debt security that does not make periodic interest payments but is sold at a discount, providing returns at maturity. 

A cryptographic method that allows one party to prove to another that they know a specific piece of information without revealing the information itself. This is usually performed with trading of cryptocurrencies. 

Maintaining a commitment to a business environment with zero tolerance for discrimination based on race, gender, or other characteristics. 

Local regulations that dictate how land and buildings can be used, impacting the development and use of commercial real estate properties.