Small Business Capital Fund

Overview

The Small Business Capital Fund ("SBCF") is a debt fund managed by Greenline, and capitalized with both NMTCs related private investment and mission driven capital.  The SBCF seeks to provide capital to impactful, underserved small businesses across the U.S. whose capital needs are often greater than a typical financial institution is able to provide based on the risk profile of the Borrower.  Through its subsidized cost of capital, the SBCF provides flexible and below-market rate subordinate capital, and in certain instances, below-market senior capital to its Borrowers. 

Borrower use of proceeds typically include:

  • Growth capital and general working capital
  • Acquisitions or expansion into new markets
  • Equipment purchases
  • Refinancings
 

Investment Criteria

  • All Borrowers must be headquartered and have significant operations in a low-income census tract, which is defined as having income of 80% or less of area media income ("AMI") or a poverty rate greater than 20%.  Please check your eligibility via the NMTC Mapping Tool.  If you have any questions, please do not hesitate to Contact Us
  • Additionally, Borrowers will have one or more of the following characteristics: (1) Minority or women ownership, (2) Beneficial environmental impact, (3) Living-wage jobs, (4) Meaningful employee benefits (Health Insurance, 401(k), Employee Ownership, etc.), (5) Employee training programs (especially for advancement from unskilled to skilled positions), (6) Local community hiring preferences, and (7) Other measurable and positive social and/or environmental impact
  • Capable of generating positive EBITDA at the time of investment
  • Be able to create and/or retain jobs through SBCF financing
  • Industry agnostic with the exception of businesses involved in mining, fossil fuel extraction, gambling, alcohol, tobacco or marijuana, and farming
  • Sponsored and non-sponsored transactions
 

Products / Terms

The SBCF will primarily provide flexible and below market-rate subordinate debt financing, in conjunction with market-rate capital from other traditional capital providers.  In certain instances, the SBCF can also provide below-market senior loans.

  • Target Investment Size: $250,000 to $2,000,000, with larger loan amounts considered on a case-by-case basis
  • Interest Rates: Pricing will be below market rate for the corresponding risk profile of the Borrower.  Interest rates will vary based on collateral/security, credit and financial strength of Borrower, loan term, etc.  Loans are typically interest only during the loan term
  • Commitment Fees: None
  • Terms: 24 months to 7 years, depending on Borrower needs, risk profile, and terms of financing
  • Amortization: Contingent on varying factors (risk profile, existing bank covenants, etc.), but typically an interest only period followed by an amortization schedule
  • Prepayment/Exit Fees: None
  • Security: Loans may be secured or unsecured, depending on the financial characteristics of the Borrower and/or 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