Meet Your Company’s Long-Term Capital Needs

Mezzanine Debt and Equity

 

If you are seeking long-term capital, we can help you obtain it through our affiliate, Triad Investments LP., a Specialized Small Business Investment Company licensed by the Small Business Administration. The maximum loan amount is $2,500,000 and the minimum is $750,000. On a case-by-case basis, we will consider higher loan amounts. The loan term may not exceed 7 years.

 

Triad provides long-term mezzanine funding and equity to small businesses that are controlled by principals that are considered socially or economically disadvantaged as defined by the SBA. Eligibility requirements for consideration can be found on the web site of the Small Business Administration.

 

Funds can be used for:

  • Expansion capital for organic growth or acquisitions
  • Permanent working capital

Investment Criteria

 

The following is the minimum criteria for consideration for obtaining financing from Triad:

 

  • 3 years of business operations
  • a business relationship with at least one NMSDC corporate member
  • positive future business prospects
  • the capacity to repay the loan as articulated in a statement of financial condition
  • earnings and cash flow history
  • earnings and cash flow forecast
  • management experience
  • available collateral

Investments are made
in three general ways:

 

  • Subordinated debt with no amortization and a bullet maturity after 5 years
  • Subordinated debt with no amortization and a bullet maturity after 5 years with the right to acquire a percentage of the business through the exercise of an equity feature like options or warrants
  • Subordinated debt with no amortization and a bullet maturity after 5 years with the right to make an equity investment in the company
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