Greenline Ventures

Small Business Capital Fund

SBCF loans can be used for a variety of purposes – including working capital, business growth/expansion, business acquisition, equipment financing and more.

Small Business Capital Fund

The Small Business Capital Fund (SBCF) is a $20 million business loan fund managed by Greenline Ventures (Greenline) that provides loans at favorable terms to under-served small businesses throughout the US. The SBCF leverages new markets tax credits (NMTC) with mission-driven capital to provide 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 and the SBCF seek to utilize the SBCF’s subsidized cost of capital to facilitate below-market rate, subordinate loans in conjunction with market-rate capital from select lenders. The SBCF can also provide below-market senior loans in some circumstances. 

ELIGIBLE BORROWERS / BUSINESSES

All borrowers must be located in a low-income census tract, generally defined as having income of 80% or less of AMI or a poverty rate greater than 20%.

Check your location eligibility:

Check Location Eligibility

If you have questions about your business’ eligibility, please click here to contact Greenline directly.

In addition to meeting the location criteria, an SBCF borrower will:

  • Have a strong and capable management team
  • Have positive revenue and preferably positive EBITDA
  • Create and/or retain jobs

The following characteristics will be beneficial (but not mandatory) in the loan application process:

  • Minority or women ownership
  • Environmental benefits
  • Living-wage jobs
  • 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 social impact

LOAN PURPOSES / TYPES

SBCF loans can be used for a variety of purposes, including working capital, business growth/expansion, business acquisition, equipment financing, etc. Loans may be secured or unsecured, depending on the financial characteristics of the business and its sponsors, and are intended to provide maximum flexibility to the business for future growth and capital needs. Loans may be subordinate to existing or future senior, market-rate financing and will have favorable inter-creditor agreements with flexible default provisions and remedies.

LOAN AMOUNTS

$250,000 to $2,000,000, with larger loan amounts considered on a case-by-case basis

LOAN TERMS

12 months to 7 years, depending on Borrower needs, risk profile, and term of senior financing

INTEREST RATES / AMORTIZATION

The SBCF loans will be priced below conventional market rates for the corresponding risk profile. Interest rates will vary based on collateral/security, credit and financial strength of borrower, loan term, etc. There are no fees or points charged on the loans, which are interest only during the loan term.

NEXT STEPS

Please contact Fred Koch at (303) 586-8002 or Fred.Koch@GreenlineVentures.com for more information.