Enterprise Capital

Enterprise Capital

Working capital to finance the start-up and growth phases of new lines of business, and to expand the geographic reach of current business lines.

Case Study

Way Finders | Strategic Growth Fund

NeighborWorks Capital provided a $750,000 loan to Way Finders from its Strategic Growth Fund to cover the stock purchase of MBL Development. The affordable housing consultant was going to close after the retirement of its founder; Way Finders purchased the business to maintain its services for developers in Western Massachusetts. The SGF loan will create liquidity to MBL and ultimately positive cash flow to Way Finders.

DETAILS
Uses Working capital to finance the start-up and growth phases of new lines of business, and to expand the geographic reach of current business lines.
Loan Amount Up to $1,000,000
Loan Term 3 to 5 years
Interest Rate From 5.75%, depending on availability of collateral/security, loan term, complexity of the business plan and sources of new cash flow for debt service
Collateral/security

Unsecured up to $500,000

Amounts greater than $500,000 will be secured by in real property, pledges of developer fees, UCC, ownership interests, and/or grant funds

Repayment Source Corporate cash flow from existing, new, or expanded lines of business
Fees Application fee - $1,000
Origination fee – 1.00% to 1.50% of loan amount
Third-party Reports

Business plan with 5-year cash flow projections

Appraisals and environmental assessments for real property collateral