There are invention funds and loans available from lenders looking for innovation based investments with proprietary technology.
There is an emphasis on these types of loans, especially in the wake of the billions of dollars in losses from toxic debt investments and bailouts.
Lenders still need to lend money to make money and promising start-ups in specific niche markets will receive priority. It is what governments will be encouraging lenders to do and incentives will be provided to support this initiative.
Small businesses that are in green industries such as solar, water, wind, bioenergy, biofuels, geothermal or hydrogen will attract invention funding and loans.
Innovations related to reducing emissions such as carbon dioxide, fluorinated gas, methane or nitrous oxide will also attract lender interest.
Invention funds and loans will be provided to innovations that deal with air quality, biotechnology, green chemistry, sustainable agriculture, waste management, urban greening and energy efficiency.
The increased concern about the instability of traditional energy sources and the infrastructure that is dependent on these sources is causing lenders to move in this direction.
There are now banks that only make loans to proprietary-based green technology companies.
Micro loans or micro credit is a financing method that is based upon lending principles that differ from traditional methods for providing finance and credit.
It is based upon a successful initiative first introduced in Bangladesh. The concept is to provide a sequence of small or "micro" loans to unemployed individuals to encourage and help them to become self-employed entrepreneurs.
These individuals generally lack collateral, or a verifiable credit history and therefore do not qualify for traditional credit.
The concept is categorized as a pre-bankable initiative, meaning that the creation of successful "micro" entrepreneurs is good for lenders because they create eventual "bankable" clients.
It is a better lending strategy for investors to diversify their portfolios by supporting innovative start-ups with smaller loans rather than to have all their eggs in a few big baskets.
After their experiences with sub-prime mortgage funds, investment banks and insolvent car manufacturers, lenders are looking for "bankable" investments.
Micro credit has a proven track record in generating employment, reducing poverty and building wealth, especially during harsh economic times, which is exactly where we are at right now.
Lenders, encouraged by governments, will begin providing micro credit initiatives. A "micro" entrepreneur with a "green" invention would potentially qualify for invention funds and loans under these initiatives.