The Small Business Capital Fund (SBCF) is a loan fund managed by Greenline Ventures that provides loans at favorable terms to under-served small businesses throughout the US. The SBCF leverages mission-driven capital to provide below market-rate financing that is flexible and patient. The objective of the SBCF is to provide attractive financing for impactful small businesses whose capital needs are often greater than a typical financial institution is able to underwrite.
Greenline Ventures is an investment management firm that specializes in capital markets solutions for economic development activities nationwide. Our mission is to improve the flow of capital into underserved communities. We leverage our knowledge, experience and relationships to serve the capital needs of low-income communities across the country.
All borrowers must be located in a low-income census tract, generally defined as having an income of 80% or less of AMI or a poverty rate greater than 20%.
Check your eligibility here: https://www.novoco.com/resource-centers/new-markets-tax-credits/data-tools/nmtc-mapping-tool
$250,000 to $2,000,000
12 months to 7 years, depending on Borrower needs, risk profile, and term of any existing senior debt financing
Loan rates are generally between 8-12%, based on collateral, credit, and strength of the borrower. All loans interest only, there are no points or fees charged on the loan (origination, exit, etc.) and typically no warrant coverage or similar equity participation.
In addition to meeting the location criteria, an SBCF borrower will:
* Have a strong and capable management team
* Create and/or retain jobs
* Have positive revenue and preferably positive EBITDA
The following characteristics will be beneficial (but not mandatory) in the loan application process:
* Minority or women ownership
* Environmental benefits
* Meaningful employee benefits (Health Insurance, 401(k), Employee Ownership, etc.)
* Employee training programs (especially for advancement from unskilled to skilled positions)
* Local community hiring preferences
* Other factors that have a demonstrable and positive economic and social impact in their communities
SBCF loans can be used for a variety of purposes, including:
* working capital
* business growth/expansion
* business acquisition
* refinancing higher interest-rate debt
* equipment financing, etc.
* subordinate debt behind SBA or USDA loans
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Contact Fred Koch of Greenline Ventures at firstname.lastname@example.org | 303.586.8002