The SE Greenhouse Loan Fund offers below market-rate loans to social enterprises that are generating revenues, have a viable business model and have a clear social mission and impacts. Preference is given to applicants that are graduates of the SE Greenhouse Accelerator. Technical assistance is available during the application process, and throughout the duration of the loan.
- Borrowers must be social enterprises, that is, businesses that seek to “do well AND do good.” We lend to a wide variety of ventures in many different industry sectors, but all of our borrowers seek to have a positive impact on our community while they are becoming financially sustainable.
- Loan size minimum is $5K. Over the last few years, the largest loans were $25K; higher amounts can be considered based on various factors, including intended use and capital available.
- Loans are intended to fund growth and can be used for wide range of purposes, including working capital, new equipment, website or app development, marketing campaigns, etc. Loans cannot be used to purchase real estate or retire personal debt.
- Payment structures are determined on a case by case basis. The most common loan structure is a three year loan with interest only paid quarterly and a balloon payment at the end, but we have used different terms for different borrowers, as we try to tailor the loan to the cash flow needs of the borrower.
- We have no pre-set collateral or revenue requirements. Potential borrowers are evaluated based on a range of factors, including the management team, value proposition, financial projections, operating strengths, and market conditions. Personal guarantees are generally required.
- Free technical assistance is available to potential borrowers who need help assembling their Loan Application package.
- Borrowers must complete quarterly financial reports and annual business reviews for the Loan Committee.
- Rates are generally prime plus 4-8%. The exact amount will depend on the loan size and the borrower risk profile.