Small Business Capital Fund
Sustainable Living Partners | Seattle, WA
• Sustainable Living Partners (“SLP”) was founded in 2017, and is a builder of high-performance, ultra-efficient, high and mid-rise multi-family properties for the urban core. SLP’s mission is to transform and enhance the multi-family housing market by delivering affordable and workforce housing to the urban core with a significantly reduced energy and water footprint. The company has a patent-protected technology that enables its buildings to cost 10-30% less to build than comparable conventional buildings, perform at 20-30% lower operating expenses, and can be built on orphan lots.
• SLP will use Greenline’s SBCF loan to provide working capital in support of its ongoing warehouse manufacturing operations and continued growth.
• The company projects that Greenline's financing will contribute to the hiring of up to 100 permanent warehouse jobs, the majority of which at a Living Wage minimum.
Product Movement Technologies | Grand Junction, CO
• Product Movement Technologies ("PMT") is a Veteran-owned business that specializes in Amazon's Small and Light Program, allowing PMT to sell the products that many other Amazon sellers don't want to sell. PMT offers a full suite of benefits to its employees, including Living Wages, health, dental, vision, 401k and life insurance.
• The borrower intends to use Greenline's funding to refinance its existing high interest rate loans and utilize the remaining funds for working capital.
• The company also expects to add 2-4 employees for their warehouse operations through Greenline's funding.
Lightning eMotors | Loveland, CO
• Lightning eMotors produces electric fleet medium and heavy-duty vehicles, including delivery trucks, shuttle buses, passenger vans, chassis-cab models, and city transit buses. The company’s products aim to improve a fleets’ operating costs and safety.
• The Company has recently completed the design of a new offering of products related to converting trucks and busses to all electric operation. Greenline's investment of working capital financing will enable the company to meet the financial burden of A/R and inventory investments necessary to meet the growth projections.
• The company projects that this financing will create at least 14 new FTE jobs, all with a Living Wage and full benefits package.
Discover Books | Baltimore, MD
• Founded in 2003, Discover Books is a nationwide reseller of used books primarily through online retailers. The company offers a wide selection of books, which include children’s books, fiction, textbooks, romance and more. At the time of Greenline’s underwriting, the company saved over 575 million lbs. of books from landfills and donated $9.5 million of books to charitable organizations.
• The company plans to use Greenline’s SBCF loan to facilitate working capital at its existing four warehouse locations and for their 260 employees, and to build out its website to pursue higher-margin direct sales.
EveryTable | Los Angeles, CA
• Through their revolutionary restaurant model, EveryTable offers healthy, made-from-scratch meals that everyone can afford. With approximately one third of their locations in food deserts, they sell healthy meals at discounted prices.
• Greenline’s financing allows for the expansion of their refrigerated vending machine line of business as well as provide working capital for operations and strategic growth.
• EveryTable will complete the buildout of at least 5 stores in underserved areas and commence the hiring of staff and construction crews for tenant improvements, with at least 20 new jobs created as a result of this financing.
RMI | Lafayette, CO
• Rocky Mountain Instrument Co. ("RMI") is a leading manufacturer of precision optics with a long history of experience in the optics and coatings industry. Products include optical components (such as lenses, mirrors, and beam splitters), high power coatings, and optical assemblies.
• SBCF Loan proceeds will be used to retire existing accounts receivable factors, purchase inventory and provide working capital to reposition the business for expansion. RMI expects to add an additional 20 employees as the result of the SBCF financing.
FoodService Partners
• FoodService Partners (“FSP”) is a privately held company created in 1998 to design, build and operate high volume central production kitchens for the healthcare industry. FSP serves 33 hospitals and long-term care facilities in California and Virginia and another 15 in New York City.
• Greenline’s SBCF loan to FSP will assist in the redevelopment of a 144,000 square foot building in Milledgeview, GA, which was formerly part of the Central State Hospital system but was vacant for years. The company’s expansion plans include renovating the buildings into a food service production facility for healthcare and school meals and updating an existing greenhouse for urban farm education.
• The GA facility is expected to employ 50 people initially, and in the next few years, that number is projected to grow to 200-350 employees.
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 $3,750,000, 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
