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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.
| 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 |
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| 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 |
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| Third-party Reports |
Business plan with 5-year cash flow projections Appraisals and environmental assessments for real property collateral |
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