INCOME STATEMENT – Financial statement showing a company’s sales, expense and net income or loss for a specific period of time.
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.
INDEPENDENT AND QUALIFIED PUBLIC ACCOUNTANTS – Public accountants are independent when neither they nor any of their family have 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.
INDUSTRY – Concerns primarily engaged in the same kind of economic activity are classified in the same industry regardless of their types of ownership (such as sole proprietorship, partnership or corporation). The US Office of Management and Budget (OMB) classifies approximately 1,000 activities as industries under NAICS. For each industry, except those in the Sector of public administration, SBA has established a size standard. Industries are described in detail in North American Industry Classification System – United States, 1997. It can be found in many libraries or purchased from the National Technical Information Service, by calling (800) 553-6847 or (703) 605-6000.
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.
INSTALLMENT LOAN — One in which the amount of interest is added to the principal and repaid by the borrower in equal periodic payments.
INTEREST – An amount paid a lender for the use of funds.
INTEREST RATES – Interest rates are negotiated between the borrower and the lender.
INTERMEDIARY ORGANIZATION – Organizations that play a fundamental role in encouraging, promoting, and facilitating business-to-business linkages and mentor-protg partnerships. These can include both nonprofit and for-profit organizations: chambers of commerce; trade associations; local, civic, and community groups; state and local governments; academic institutions; and private corporations.
INVENTORY – Merchandise that is purchased and/or produced and stored for eventual sale.
INVENTORY TURNOVER – How often the inventory is sold and replenished over the course of a year.
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."
INVITATION FOR BIDS – Formal solicitations for offerings, to perform procurements by competitive bids when the specifications describe the requirements of the government clearly, accurately, and completely; but avoiding unnecessarily restrictive specifications or requirements which might unduly limit the number of bidders.
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