Glossary Of Small Business Terms part 10

required to announce, in the CDB, proposed procurement actions over $25,000 and contract awards over $25,000 that are likely to result in the award of any subcontracts. Prime contractors are also encouraged to publish subcontracting opportunities in the  CBD.

COMMERCIAL PAPER Unsecured promissory notes of large corporations.

COMMUNITY ADJUSTMENT AND INVESTMENT PROGRAM (CAIP) The United States Community Adjustment and Investment Program was created to help communities that suffered job losses due to changing trade patterns with Mexico and Canada following the North American Free Trade Agreement (NAFTA). The CAIP promotes economic implementation of the adjustment by increasing the availability and flow of credit and encourages business development and expansion in impacted areas. Through the CAIP, credit is available to businesses in eligible communities to create new, sustainable jobs or to preserve existing jobs. The CAIP works with the SBA in both their 7(a) Loan Guarantee Program and 504 Program to reduce borrower costs and increase the availability of these proven business assistance programs.

COMMUNITY EXPRESS Community Express is a pilot SBA loan program that was developed in collaboration with the National Community Reinvestment Coalition (NCRC) and its member organizations. Under the pilot, which is available to selected lenders, an SBA Express like program will be offered to pre-designated geographic areas serving mostly New Markets small businesses. The program will also include technical and management assistance, which is designed to help increase the loan applicant's chances of success.

COMPROMISE The settlement of a claim resulting from a defaulted loan for less than the full amount due. Compromise settlement is a procedure available for use only in instances where the government cannot collect the full amount due within a reasonable time, by enforced collection proceedings or where the cost of such proceedings would not justify such effort.

CONDITIONS External factors such as government regulation, competition, industry trends, national economic trends that can affect the success of a business. One of the "Five Cs" of credit.

CONSORTIUM A coalition of organizations, such as banks and corporations, set up to fund ventures requiring large capital resources.

CONTINGENCY FUND Cash held for emergencies or unexpected outflows of funds. Also known as "Precautionary Balances."

CONTINGENT LIABILITY A potential obligation that may be incurred dependent upon the occurrence of a future event. Two examples are: (1) the liability of an endorser or

Glossary Of SmallBusiness Terms part 11

DYNAMAX BUSINESS CREDIT