As the need arises, additional capital will be tapped from Self-Help's general loan pools, further bolstering available funds. The project's goal is to help 8-10 businesses per year, divert 115,000 tons of material, and create or retain 80 jobs. Volatile markets and unproven technologies make it risky for financial institutions to get involved with recycling companies.
Banks are reluctant to fund start-ups or companies in untested sectors.
While venture capital is designed to take on higher levels of risk, those firms often want only very large deals and those with some form of management participation. The new loan fund is designed to function in the gap between bank loans and venture capital. The loans will be structured as market-rate debt and can be used for working capital, inventory, equipment and real estate purchases. Initial interest-only periods will be available, where appropriate. Our staff are well-skilled at tapping existing SBA pools and guarantee programs to help with the approval of riskier loans.