11

SOURCES OF CAPITAL
LEARNI NG OBJECTI VES
1
To identify the types of financing available
!
To "nde#stand the #ole of co$$e#cial ban%s in financing ne& vent"#es'
the types of loans available' and ban% lending decisions
(
To disc"ss S$all )"siness Ad$inist#ative *S)A+ loans
,
To "nde#stand the aspects of #esea#ch and develop$ent li$ited pa#tne#ships
-
To disc"ss gove#n$ent g#ants' pa#tic"la#ly s$all b"siness innovation #esea#ch g#ants
.
To "nde#stand the #ole of p#ivate place$ent as a so"#ce of f"nds
253
OPENING PROFILECWalt Disney
I. AN OVERVIEW
A. Different sources of capital are generally used at different times in the life of the
venture.
B. Debt or Equity Financing.
1. Debt financing involves an interest-bearing instrument, usually a loan, the pay-
ment of hich is only indirectly related to sales and profits.
a. Debt financing !also called asset-based financing" re#uires some asset be
used as collateral.
b. $he entrepreneur has to pay bac% the amount of funds borroed plus a fee,
e&pressed in terms of the interest rate.
c. Shortter! !oney is used to provide or%ing capital'funds are usually re-
paid from resulting sales.
d. Long ter! "ebt !lasting more than a year" is fre#uently used to purchase
some asset, using part of the value of the asset as collateral.
e. Debt lets the entrepreneur retain a large onership position and have greater
return on e#uity.
f. (f the debt is too great, payments become difficult to ma%e and groth is in-
hibited.
2. Equity financing offers the investor some form of onership position in the ven-
ture.
a. $he investor shares in the profits of the venture.
b. )actors in choosing the type of financing are availability of funds, assets of
the venture, and prevailing interest rates.
c. *sually a combination of debt and e#uity financing is used.
3. (n a mar%et economy all ventures ill have some e#uity, as all are oned by
some person or institution.
a. $he e#uity may be entirely provided by the oner or may re#uire multiple
oners.
b. $his e#uity funding provides the basis for debt financing, hich ma%es up
the capital structure of the venture.
+. Internal or E#ternal Fun"s.
1. $he most often used type of funds is internally generated funds.
a. $hese funds come from sources ithin the company, such as profits, sale of
assets, reduction in or%ing capital, e&tended payment terms, and accounts
receivable.
b. (n the start-up years all the profits are usually ploed bac% into the venture.
c. ,ometimes little-used assets can be sold or leased.
+hapter 11 25- Entre$reneurshi$
d. Assets, henever possible, should be on a rental basis, not an onership
basis.
e. .ne short-term internal source of funds is reducing short-term assets, often
through e&tended payments from suppliers.
f. Another method is by collecting accounts receivable more #uic%ly.
2. .ther general sources are e#ternal to the venture.
a. Alternative sources should be evaluated by/
!i" 0ength of time the funds are available.
!ii" +osts involved.
!iii" Amount of control lost.
b. $he more fre#uently used sources of start up capital as listed in 1ntrepreneur-
ship maga2ine are/
!i" savings !314"
!ii" private investor !314"
!iii" friends and family !154"
!iv" home e#uity line of credit !164"
!v" ban% loan !134"
!vi" credit cards !174"
!vii" sale of another business !14"
!viii" ,BA loan !14"
!i&" other sources !24"
II. PERSONAL FUNDS
A. )e ne ventures are started ithout the personal funds of the entrepreneur.
1. 8ersonal funds are the least e&pensive in terms of cost and control9 they are also
essential in attracting outside funding.
2. $ypical sources include savings, life insurance, or mortgage of a house or car.
B. .utside investors ant the entrepreneur to demonstrate financial commitment.
1. $his level of commitment is shon by the percentage of total assets available the
entrepreneur has committed.
2. An outside investor ants an entrepreneur to have committed all available assets.
3. (t is not the amount but the fact that all monies available are committed that
ma%es outside investors feel comfortable.
III. FAMILY AND FRIENDS
A. After the entrepreneur, family and friends are a common source of capital.
B. )amily and friends provide a small amount of e#uity funding for ne ventures.
(nstructor:s ;anual 255 ,ection 2/ +hapter <otes
1. (t is relatively easy to obtain money from family and friends, but the amount of
money provided may be small.
2. (f it is in the form of e#uity funding, the family member or friend has an oner-
ship position in the venture.
3. (f they have direct input into operations of the venture, it may have a negative ef-
fect on employees or profits.
+. $o avoid potential future problems, the entrepreneur must present the positive and
negative aspects and the nature of the ris%s of the investment.
1. $o minimi2e any future problems, the entrepreneur should %eep the business ar-
rangements strictly business.
2. Any loan should specify the rate of interest and the proposed repayment schedule
of interest and principal.
3. $he entrepreneur should settle everything up front and in riting.
-. A formal agreement specifying details of the funding helps avoid future prob-
lems.
D. $he entrepreneur should carefully consider the impact of the investment on the fam-
ily member or friend before it is accepted.
IV. COMMERCIAL BANKS
A. %o!!ercial ban&s are the most fre#uently used source of short-term funds hen col-
lateral is available.
1. $his is debt financing and re#uires some tangible guaranty or collateral, some
asset ith value.
2. $his collateral can be business assets, personal assets, or the assets of the cosign-
er of the note.
B. $ypes of Ban% 0oans.
1. $he asset base for loans is usually accounts receivable, inventory, e#uipment, or
real estate.
2. 'ccounts Recei(able Loans.
a. Accounts receivable provide a good basis for a loan, especially if the custom-
er base is creditorthy.
b. A ban% may finance up to 574 of the value of the accounts receivable.
c. A )actoring arrange!ent can be developed hereby the factor !ban%" actu-
ally buys the accounts and collects the money.
d. (f any of the receivables are not collectible, the factor sustains the loss, not
the business.
e. $he cost of factoring is higher than the cost of securing a loan against the ac-
counts receivable.
3. In(entory Loans.
+hapter 11 253 Entre$reneurshi$
a. (nventory is often a basis for a loan, particularly hen inventory is li#uid and
can be sold easily.
b. )inished goods inventory can be financed up to 574 of value.
c. $rust receipts are a type of inventory loan used to finance floor plans of re-
tailers such as auto dealers.
d. $he ban% advances a large percentage of the invoice price of the goods and is
paid a pro rate basis as the inventory is sold.
-. Equi$!ent Loans.
a. 1#uipment can be used to secure longer term financing up to 3 to 17 years.
b. =hen ne e#uipment is purchased, 57 to 574 of value can be financed.
c. (n saleleasebac& )inancing the entrepreneur >sells? the e#uipment to a lender
and then leases it bac%.
5. Real estate loans are easily obtained to finance land, plant, or building, usually
up to 654 of value.
+. +ash )lo )inancing.
1. +ash flo financing, or conventional bank loans* include lines of credit, install-
ment loans, straight commercial loans, long-term loans, and character loans.
a. Lines o) cre"it financing are the most fre#uently used by entrepreneurs.
b. $he company pays a +co!!it!ent )ee, at the start then pays interest on out-
standing borroed funds.
2. Install!ent Loans.
a. Install!ent loans can be obtained by a going venture ith a trac% record of
sales and profits.
b. $hese funds are used to cover or%ing capital needs, usually for 37 to -7
days.
3. Straight %o!!ercial Loans.
a. (n this hybrid of the installment loan, funds are advanced to the company for
37 to @7 days.
b. $hese self-li#uidating loans are used for seasonal financing.
-. Long-er! Loans.
a. $hese loans are usually only available to strong, mature companies.
b. )unds are available for up to 17 years ith the debt repaid according to a
fi&ed interest and principle schedule.
5. %haracter Loans.
a. =hen the business does not have assets to support a loan, the entrepreneur
may need a character loan.
b. $hese loans must have assets of an individual pledged as collateral, or have
the loan cosigned by another.
D. Ban% 0ending Decisions.
(nstructor:s ;anual 256 ,ection 2/ +hapter <otes
1. Ban%s are very cautious in lending money, particularly to ne ventures.
a. +ommercial loan decisions are made only after the loan officer does a careful
revie of the borroer.
b. Decisions are made based on #uantifiable and subAective Audgments.
2. Ban% lending decisions can be summari2ed by the )i(e %.s'+haracter, +apacity,
+apital, +ollateral, and'+onditions.
a. 8ast financial statements are revieed in terms of %ey ratios and the entre-
preneur:s capital invested.
b. )uture proAections on mar%et si2e, sales, and profitability are evaluated.
c. (ntuitive factors'+haracter and +apacity'are also ta%en into account and
become more important hen there is little or no trac% record.
3. $he loan application format is generally a >mini? business plan.
a. $his provides the loan officer and loan committee information on the credit-
orthiness of the individual and the ability of the venture to repay the loan.
b. 8resenting a positive business image and folloing procedure are important
in obtaining the funds.
-. $he entrepreneur should borro the ma&imum amount possible that can be re-
paid, as long as the prevailing interest rates and terms are satisfactory.
a. $he venture must ma%e sure that it ill generate enough cash flo to repay
the interest and principal on the loan.
b. $he entrepreneur should evaluate the trac% record and lending policies of
several ban%s in the area.
V. ROLE OF SBA IN SMALL BUSINESS FINANCING
A. =hen the entrepreneur is unable to secure a regular commercial ban% loan, an altern-
ative is a guarantee from the S!all /usiness '"!inistration 0S/'1.
1. $he ,BA is primarily a guarantor of loans made by private and other institutions.
2. $he /asis 20a1 Loan Guaranty helps #ualified small businesses obtain financing
hen they cannot obtain loans through regular lending channels.
B. $o get a 6!a" loan, the small business person or entrepreneur must be eligible.
1. +riteria include good character, management capability, collateral, si2e, type of
business, use of proceeds, and the availability of funds from other sources.
2. $he ,BA 6!a" loan program has a ma&imum loan amount of B2 million ith the
,BA:s ma&imum e&posure of B1 million.
3. $he interest rates on the loan are negotiated beteen the borroer and the lender,
but are subAect to ,BA ma&imums.
+. ;ost of the loans have the same guarantee features.
1. $he ,BA can guarantee 554 of loans of B157,777 or less and 654 of loans
above B157,777 to a ma&imum of B1 million.
2. S/' E#$ress loans have a ma&imum guarantee of 574, and e&port or%ing cap-
+hapter 11 255 Entre$reneurshi$
ital loans have a ma&imum guarantee of @74.
3. 0enders are charged a guaranty and servicing fee for each approved loan.
D. .ther ,BA 8rograms.
1. $he 345 Loan Progra! provides fi&ed-rate financing to enable small businesses
to ac#uire machinery, e#uipment, or real estate.
2. $he loan can include a loan from a %o!!unity De(elo$!ent %o!$any 0%D%1
bac%ed by a 1774 ,BA guaranteed debenture.
1. S/' 6icroloan is a 6!m" loan program.
1. $his program provides short-term loans of up to B35,777 to small businesses for
or%ing capital or the purchase of assets.
2. $he small business receives the loan from a lender, ith the loan being guaran-
teed by the ,BA.
3. .ther loans include 7o!e an" Personal Pro$erty Disaster Loans* Physical Dis
aster /usiness Loses Loans* and 6ilitary Reser(ist Econo!ic In8ury Disaster
Loans.
VI. RESEARCH AND DEVELOPMENT LIMITED PARTNERSHIPS
A. $his method of financing provides funds from inventors loo%ing for ta& shelters.
1. A typical CDD partnership arrangement is established beteen a sponsoring
company developing the technology ith funds provided by a limited partnership
of individual investors.
2. Research and development limited partnerships are particularly good hen the
proAect involves a high degree of ris% or significant e&pense.
B. ;aAor 1lements.
1. $he three components are the contract, the sponsoring company, and the limited
partnership.
2. $he contract specifies the agreement beteen the sponsoring company and the
limited partnership.
a. $he sponsoring company does not guarantee results, but performs or% on a
best-effort basis.
b. $he typical contract specifies that the liability for any loss be borne by the
limited partners.
c. $here are some ta& advantages for both the partnership and the company.
3. $he ne&t component is the limited partners.
a. $he li!ite" $artners have limited liability but are not a ta&able entity.
b. Any ta& benefits of the losses are passed directly to the limited partners.
c. =hen the technology is successfully developed, the partners share in the
profits.
-. $he s$onsoring co!$any acts as the general partner developing the technology.
(nstructor:s ;anual 25@ ,ection 2/ +hapter <otes
a. $he sponsoring company usually has the base technology but needs funds for
commercial success.
b. $he company usually retains the rights to use this technology to develop oth-
er products.
+. 8rocedure.
1. (n the )un"ing stage, a contract is established and the money invested for the pro-
posed CDD effort.
2. (n the "e(elo$!ent stage* the sponsoring company performs the actual research,
using the funds of the limited partners.
3. (f the technology is successfully developed, the e#it stage begins, ith both
parties reaping the benefits.
a. (n the typical agreement, the sponsoring company and limited partners form a
ne Aointly oned corporation.
b. An alternative e&it strategy is a royalty $artnership in hich a royalty based
on the sale of the products is paid by the company to the limited partnership.
c. $he company and limited partners may form a 8oint (enture to manufacture
and mar%et the product.
D. Benefits and +osts.
1. /ene)its.
a. CDD limited partnerships provide needed funds ith a minimum of e#uity
dilution hile reducing the ris%s involved.
b. $he sponsoring company:s financial statements are strengthened through the
attraction of outside capital.
2. %osts.
a. +onsiderable time and money are e&pended.
b. An CDD limited partnership ta%es a minimum of si& months and B57,777 in
professional fees.
c. ;ost CDD limited partnership are unsuccessful.
d. $he restrictions placed on the technology may be substantial.
e. $he e&it from the partnership may be too comple&.
1. 1&amples.
1. ,uccessful CDD limited partnerships include ,ynte& +orporation, Eenetech, and
$rilogy 0imited.
2. CDD limited partnerships offer one alternative to funding technological develop-
ment.
VII. GOVERNMENT GRANTS
A. $he ,mall Business (nnovation Development Act re#uires all federal agencies to
aard a portion of the CDD funds to small businesses through the Small Business
+hapter 11 237 Entre$reneurshi$
Innovation Research (SBIR) grant program.
1. $his provides a uniform method of soliciting, evaluating, and selecting research
proposals.
2. $en agencies are involved in the program.
a. ,mall businesses submit proposals directly to each agency.
b. 1ach agency evaluates each proposal on a competitive basis and ma%es
aards.
B. $he ,B(C grant program has three phases.
1. Phase I9 aards are up to B177,777 for si& months of feasibility-related e&peri-
mental or theoretical research.
2. Phase II is the principal CDD effort.
a. 8hase (( aards are up to B657,777 for 2- months of further research and de-
velopment.
b. $he money is to be used to develop prototype products.
3. (n Phase III funds from other sources, such as the private sector or regular gov-
ernment contracts, are needed to commerciali2e the developed technologies.
+. 8rocedure.
1. $he agencies publish solicitations describing the areas of research they ill fund.
2. $he second step is submission of the proposal by a company or individual.
3. 1ach agency screens the proposals it receives, and those passing are evaluated on
a technology basis by e&perts.
-. Aards are granted to those proAects that have the best potential for commercial-
i2ation.
5. Any patent rights, research data, and softare generated are oned by the com-
pany, not the government.
D. $he ,B(C grant program is one alternative for a technically-based entrepreneurial
company that is independently oned and operated and employs 577 or feer indi-
viduals.
1. $he S!all /usiness -echnology -rans)er 0S--R1 program as established by the
,mall Business $echnology $ransfer Act of 1@@2.
1. )ederal agencies ith budgets over B1 billion are re#uired to set aside 7.34 for
small businesses.
2. )ive agencies participate in the ,$$C program/
a. $he Department of Defense !D.D"
b. $he Department of 1nergy !D"1"
c. Department of Fealth and Fuman ,ervices !DFF,"
d. $he <ational Aeronautics and ,pace Administration !<A,A"
e. $he <ational ,cience )oundation !<,)"
(nstructor:s ;anual 231 ,ection 2/ +hapter <otes
3. ,B(C and ,$$C programs differ in to ays/
a. (n the ,B(C program, the borroer must be employed by the venture9 there is
no employment stipulation in the ,$$C program.
b. $he ,$$C program re#uires at least -74 of the research be conducted by the
small business concern and at least 374 conducted by the partnering non-
profit institution.
VIII. PRIVATE PLACEMENT
A. Another source of funds is $ri(ate $lace!ent ith investors ho may be family and
friends or ealthy individuals.
B. $ype of (nvestors.
1. An investor usually ta%es an e#uity position and can influence the nature of the
business to an e&tent.
2. $he investors: degree of involvement is important for the entrepreneur to con-
sider.
3. ,ome investors ant to be actively involved in the business, and others are more
passive.
+. 8rivate .fferings.
1. 8ublic offerings involve much time and e&pense.
2. Cegistering the securities ith the ,ecurities and 1&change +ommission !,1+"
re#uires a number of reporting procedures once the firm has gone public.
3. $his public process as established to protect unsophisticated investors.
-. A private offering is faster and less costly than other funding.
5. $hese sophisticated investors still need access to material information about the
company.
D. Cegulation D.
1. Regulation D contains/
a. Broad provisions designed to simplify private offerings.
b. Eeneral definitions of hat constitutes a private offering.
c. ,pecific operating rulesCCule 57-, Cule 575, and Cule 573.
2. Cegulation D re#uires the issuer of a private offering to file five copies of )orm
D ith the ,1+ on a strict timetable.
3. $he entrepreneur carries the burden of proving that the e&emptions granted have
been met.
a. 1ach offering memorandum needs to be numbered and contain instructions
that the document should not be disclosed.
b. $he date that the investor revies the company:s information and dates of
any discussions beteen the company and entrepreneur should be recorded.
c. $he boo% documenting all specifics of the offering should be placed in the
+hapter 11 232 Entre$reneurshi$
firm:s permanent file.
3. *nder Rule 345 a company can sell up to B577,777 of securities to any number
of investors in any 12-month period.
-. Rule 343 permits the sale of B5 million of unregistered securities in the private
offering in any 12-month period.
a. $hese can be sold to any 35 investors, and an unlimited number of accredited
investors.
b. +'ccre"ite" in(estors, include/
!i" (nstitutional investors.
!ii" (nvestors ho purchase over B157,777 of the issuer:s securities.
!iii" (nvestors hose net orth is B1 million or more.
!iv" (nvestors ith incomes in e&cess of B277,777 in the last to years.
!v" Directors, officers, and general partners of the issuing company.
c. Cule 575 permits no general advertising or solicitation through public media.
d. =hen only accredited investors are involved, no disclosure is re#uired under
Cule 575.
e. $o-year financial statements must be available.
f. All companies selling private-placement securities must/
!i" )urnish appropriate company information to both accredited and unac-
credited investors
!ii" Allo any #uestions to be as%ed prior to the sale.
5. Rule 34: allos an issuing company to sell an unlimited amount of securities to
35 investors and an unlimited number of accredited investors.
1. (n securing outside funding, the entrepreneur must accurately disclose all informa-
tion.
1. (f the business turns sour, both investors and regulators scrutini2e the company:s
disclosures.
2. =hen a violation of security la is discovered, management and sometimes the
principal e#uity holders can be held liable.
3. 0asuits under securities la by damaged investors have almost no statute of lim-
itations.
-. $he entrepreneur needs to be careful to ma%e sure all disclosures are accurate.
5. $he ,1+ can also ta%e administrative, civil, or criminal action, ithout any indi-
vidual lasuit involved.
IX. BOOTSTRAP FINANCING
A. /ootstra$ )inancing is particularly important at start-up and early years of the ven-
ture hen capital from debt financing or e#uity financing is more e&pensive.
(nstructor:s ;anual 233 ,ection 2/ +hapter <otes
B. .utside capital has many costs.
1. (t ta%es three to si& months to raise outside capital hen the company can least
afford the time.
2. .utside capital often decreases a firm:s drive for sales and profits.
3. $he availability of capital increases the impulse to spend.
-. .utside capital can decrease the company:s fle&ibility and hamper the creativity
of the entrepreneur.
5. .utside capital may cause more disruption and problems in the venture than
ithout it.
+. /ootstra$ )inancing involves using any possible method for conserving cash.
1. $his can involve delaying payment !ith caution" to suppliers.
2. Also possible/ discounts for volume, fre#uent customer discounts, promotional
discounts, >obsolescence money,? and bul% pac%aging.
3. %onsign!ent )inancing involves placing a standing order for the entire amount of
goods but ta%ing shipment and ma%ing payment only as needed.
D. (n spite of these potential problems, an entrepreneur at times needs e#uity funding.
1. .utside capital should only be sought after all possible internal sources of funds
have been e&plored.
2. =hen outside funds are obtained, the entrepreneur should not forget the basics of
the business.
X. IN REVIEW: SUMMARY.
,ee Lear!" O#$e%&!'e( Re'!(!&e)* belo.
+hapter 11 23- Entre$reneurshi$
LEARNI NG OBJECTI VES REVI SI TED
earning !b"ective #$ %o identify the types of financing available$
G Debt )inancing involves an interest-bearing instrument, usually a loan, the payment of
hich is only indirectly related to sales and profits.
H ,hort-term money is used to provide or%ing capital.
H 0ong term debt !lasting more than a year" is fre#uently used to purchase some as-
set, ith part of the value of the asset being used as collateral.
G Equity )inancing offers the investor some form of onership position.
G $he most often used type of funds is internally generate" )un"s, from sources ithin the
company, such as profits, sale of assets, reduction in or%ing capital, e&tended payment terms, and ac-
counts receivable.
G E#ternal )inancing is obtained from sources outside the venture.
H (n terms of cost and control, personal funds are the least e&pensive.
H )amily and friends can provide a small amount of e#uity funding.
earning !b"ective &$ %o understand the role of commercial banks in financing ne' ventures( the
types of loans available( and bank lending decisions$
G +ommercial ban%s are the most fre#uently used source of short-term funds hen collater-
al is available.
G $ypes of ban% loans include accounts receivable loans, inventory loans, e#uipment loans,
and real estate loans.
G +onventional ban% loans include lines of credit, installment loans, straight commercial
loans, long-term loans, and character loans.
G Ban% lending decisions can be summari2ed by the five +:sC+haracter, +apacity, +apital,
+ollateral, and +onditions.
earning !b"ective )$ %o discuss Small Business *dministrative (SB*) loans$
G $he ,BA is primarily a guarantor of loans made by private and other institutions.
G $he /asis 20a1 Loan Guaranty helps #ualified small businesses obtain financing hen
they cannot obtain loans through regular lending channels.
G S/' E#$ress loans have a ma&imum guarantee of 57 percent.
G $he 345 Loan Progra! provides fi&ed-rate financing to enable small businesses to ac-
#uire machinery, e#uipment, or real estate.
G $he S/' 6icroloan $rogra! provides short-term loans of up to B35,777 to small busi-
nesses for or%ing capital or the purchase of assets.
G .ther loans include/
H Fome and 8ersonal 8roperty Disaster 0oans
H 8hysical Disaster Business 0oses 0oans
H ;ilitary Ceservist 1conomic (nAury Disaster 0oans.
(nstructor:s ;anual 235 ,ection 2/ +hapter <otes
earning !b"ective +$ %o understand the aspects of research and development limited partnerships$
G A research an" "e(elo$!ent $artnershi$ arrangement is established beteen a sponsor-
ing company developing the technology ith funds being provided by a limited partnership.
G $he three components are the contract, the sponsoring company, and the limited partner-
ship.
G $he procedure includes/
H $he )un"ing stage, in hich a contract is established and the money invested for
the proposed CDD effort.
H $he "e(elo$!ent stage* in hich the company performs the actual research, us-
ing the funds of the limited partners.
H $he e#it stage* in hich both parties reap the benefits.
G $here are benefits and costs'most CDD limited partnerships are unsuccessful.
earning !b"ective ,$ %o discuss government grants( particularly small business innovation research
grants$
G $he S!all /usiness Inno(ation Research 0S/IR1 grant program re#uires all federal agen-
cies to share a portion of the CDD funds ith small businesses.
G $he ,B(C program provides a uniform method of soliciting, evaluating, and selecting re-
search proposals.
G $his grant program is one alternative for a technically-based entrepreneurial company
that is independently oned and operated and employs 577 or feer individuals.
G *nder the S!all /usiness -echnology -rans)er 0S--R1 program federal agencies ith
budgets over B1 billion are re#uired to set aside 7.34 for small businesses.
earning !b"ective -$ %o understand the role of private placement as a source of funds$
G Another source of funds is private investors ho may be family and friends or ealthy
individuals.
G An investor usually ta%es an e#uity position and can influence the nature of the business
to an e&tent.
G A private offering is faster and less costly than other funding.
G Cegulation D contains a number of broad provisions designed to simplify private offer-
ings and specific operating rules.
+hapter 11 233 Entre$reneurshi$