Denver-based Greenline Ventures Launches Second Innovative Fund to Finance Small Businesses and Fuel Job Creation and Economic Growth Nationwide
DENVER, Jan. 23, 2019 /PRNewswire/ -- Greenline Ventures has launched its second Small Business Capital Fund (SBCF II) to deliver much-needed financing to underserved small businesses nationwide. Based on the strong demand from small business owners across the country, along with the success in fully investing their first $20 million small business capital fund, the $25 million SBCF II should be welcomed by the small business community. The fund will provide flexible loans between $250,000 and $2,500,000 to small businesses creating positive economic and social outcomes in their communities. Targeted objectives include job creation, training programs, enhanced benefits packages, minority or women-ownership, reductions in environmental impacts and other forms of assistance to low-income workers.
"Small businesses continue struggling to access the capital required to effectively operate and grow – particularly businesses located in low-income communities," said Patrick Vahey, President of Greenline Ventures. "As with our first fund, this fund will provide equity-like financing at very favorable rates and terms for eligible businesses to facilitate growth and expansion, thus stimulating economic development and job growth in underserved communities."
To date, Greenline's first SBCF has provided loans to 17 underserved businesses throughout the country. The loans, which mainly consist of subordinate loans in conjunction with market-rate senior loans from local banks, provided much needed growth capital, including inventory, equipment, acquisitions, etc. A representative recipient of SBCF financing includes VOORMI, a technical wool apparel company based in the rural community of Pagosa Springs, CO. The SBCF funding was critical to the company as they continue to grow sales and expand the reach of their brand.
Another example includes Think Broccoli, a minority-owned urban social enterprise located in Baltimore, Md., that organizes social impact campaigns and events to help mobilize and educate impacted communities. The SBCF made a time sensitive working capital loan to the company to execute its festivals, conferences, volunteer opportunities and other community events.
Greenline's SBCFs provide affordable, flexible capital, alongside technical assistance, to enable small businesses to sustain themselves, grow, hire, and contribute to their local economies. To accomplish this, SBCF is again leveraging New Markets Tax Credits (NMTC) with private, mission-driven capital to enable shorter-term loans with substantially lower interest rates, lower fees and more flexible terms and conditions than available in the traditional marketplace.
"Small businesses are the backbone of the American economy. They create jobs. But access to capital, which is essential to start or expand any business, is one of the greatest challenges faced by small business entrepreneurs. Many low-income communities suffer from a lack of investment. The New Markets Tax Credit has helped drive capital to where it is needed most, creating jobs and increasing needed services for residents. In Maryland, the New Markets Tax Credit has been deployed across our state on a diverse range of infrastructure and community development efforts. In fact, nationwide, the NMTC has financed over 5,000 projects and created more than one million jobs from 2003 to 2015," said Senator Ben Cardin, ranking member of the Senate Small Business & Entrepreneurship Committee.
Having closed over $2 billion NMTC investments to date, Greenline has a long and successful track record of investing in low-income communities. Both the NMTC program and Greenline's investments have received strong support from a variety of local and national leaders.
Greenline, headquartered in Denver, Colo., is managing the fund and is responsible for originating and servicing the loans. Greenline co-invested in the debt capital for the fund and contributed a portion of its NMTC allocation. The NMTC equity investor is U.S. Bancorp Community Development Corporation (USBCDC), based in St. Louis, Mo., and the debt capital is being provided to the fund by a group of mission-driven investors led by Calvert Impact Capital, based in Bethesda, Md.
"Greenline Ventures' SBCF II is providing catalytic financing for underserved small businesses. In this uncertain economic climate, it is vital that we continue channeling much needed capital to local businesses that are creating jobs and fostering growth. Since 1995, Calvert Impact Capital has championed under-resourced small businesses, and we are excited to continue that work through our partnership with Greenline," said Lucas Pappas, an Investment Director at Calvert Impact Capital.
"Small businesses that need to expand will have increased access to capital thanks to this loan fund," said Tracey Gunn Lowell, vice president of USBCDC. "The USBCDC is proud to support this work. When barriers to capital are erased, businesses can grow and create jobs, and that adds to the economic vitality of communities."
For more information about the fund or to make an inquiry about a particular need, please visit http://www.greenlineventures.com/small-business-capital-fund-2/ or contact Fred Koch at [email protected] or 303-586-8002.
About Greenline Ventures
Greenline Ventures is a minority-controlled and employee-owned investment management firm that specializes in delivering capital to businesses and communities that are underserved by traditional capital providers. Greenline is a certified B Corporation whose wholly-owned subsidiary, Greenline CDF, is a certified Community Development Financial Institution (CDFI). To date, Greenline has received $547 million in New Markets Tax Credit allocation authority from the US Department of the Treasury and has invested over $2 billion in low-income communities nationwide. For more information about Greenline, please visit www.greenlineventures.com
About Calvert Impact Capital
Calvert Impact Capital is a 501(c)(3) nonprofit impact investing organization. For over 20 years Calvert has enabled people to invest for social good through the Community Investment Note®. The Note is a fixed income security available to all types of investors. The capital raised through the Note is used to make loans to non-profits and social enterprises throughout the U.S. and around the world that create measurable social and environmental impact. www.calvertfoundation.org
About U.S. Bancorp Community Development Corporation:
With $28 billion in managed assets as of Sept. 30, 2018, U.S. Bancorp Community Development Corporation, a subsidiary of U.S. Bank, provides innovative financing solutions for community development projects across the country using state and federally sponsored tax credit programs. USBCDC's commitments provide capital investment to areas that need it the most and contribute to the creation of new jobs, the rehabilitation of historic buildings, the construction of needed affordable and market-rate homes, the development of renewable energy facilities, and the generation of commercial economic activity in underserved communities. Visit USBCDC on the web at www.usbank.com/cdc.
Through U.S. Bank Community Possible, the company invests in economic development by supporting work, home and play – creating stable jobs, better homes and vibrant communities.
SOURCE Greenline Ventures
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