Few choices exist for small businesses seeking growth capital – mainly senior bank debt or expensive equity investment. As they reach their bank’s lending limit, business owners may turn to other sources of capital, such as personal credit cards, venture capital or an equity partner. Whereas the latter two options typically require relinquishing some ownership of the company, Regional Growth Capital provides a unique alternative – investment without ownership.
Candidates include companies that demonstrate significant potential for success and value the investment as an attractive alternative to venture capital or other forms of equity investment. Companies from a variety of industry types – manufacturing, distribution, service, and retail – based in eastern Missouri and southwestern Illinois are eligible. Regional Growth Capital makes investments of $50,000 to $500,000 that can be used to help fund organic growth, acquisition or recapitalization plans.
Regional Growth Capital makes investments in the form of subordinated financing of up to $500,000 to qualified applicants. A qualified applicant’s profile reflects the following:
As part of the approval process, a committee considers several guidelines, including:
Regional Growth Capital’s pricing structure is unique in that it provides companies with needed capital without taking equity or options, or requiring a seat on its board of directors. It provides crucial capital, allowing small businesses to accomplish or even accelerate their growth objectives without requiring them to forfeit early equity at a significant cost.
How it works:
Once an applicant has completed and submitted an application and all supplemental materials, along with a non-refundable application fee, Regional Growth Capital will begin its due diligence process. In determining each applicant’s qualifications, the RGC investment committee reviews each application. The approval process typically takes six weeks. If approved, and once the applicant accepts the terms offered, a company can expect to close and receive its investment in anywhere from two to three weeks.