Alternatives to “Vulture Capital Financing”

If you are a business owner seeking equity investment or subordinated debt loans you must hear about two relatively unknown programs available to U.S. companies, BEFORE you seek "Vulture Capital Financing". This month’s speaker, Sam Thacker (http://www.linkedin.com/in/smbfinance) will discuss the pros and cons of obtaining growth capital from Small Business Investment Companies (SBICs) and Business Development Companies (BDCs).

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SBICs either make equity investments into company or make subordinated debt loans. They are regulated private funds that must all follow a set of rules set forth by the U.S. Small Business Administration. There are approximately 350 SBICs in the United States. SBICs may be an option for companies are looking for start-up capital, growth capital, or mezzanine capital.

BDCs were created by Congress in 1980, but few business owners have ever heard of them. Like SBICs, BDCs are regulated investment companies. All of them are publicly traded companies.

Sam will speak about how these two types of regulated investment companies can help small and mid-sized businesses, and how:

• SBICs and BDCs are different than “Vulture Capital Financing”

• To find the right SBIC or BDC?

• SBICs fund company growth

• To prepare for the evaluation and investment process

If your company is commercializing a product or service, or growing to the next level, this presentation will help you better understand options for investment capital to grow.

About our speaker

Sam Thacker has been a commercial banker or consultant to SBICs since 1994. Companies that have difficult financing challenges turn to him for help. He is the co-owner of Austin based Business Finance Solutions (http://www.bfs-usa.com/) and can be reached at 512-657-7552.