The Small Cap Loan Program offers similar benefits as the “Multiples Program”, but is designed for projects that do not require $30M+ loans (as offered in the Multiples Program). If you have raised $3M to $9M USD for your project, we can provide a loan of 2X the amount you have raised to finance the entire project, while your initial funds sit safely in a lawyer’s IOLTA escrow/trust account. This eliminates the risk for the borrower (or their investor) as they will never have to risk their initial funds into the project.
Example: A borrower requiring an $8M loan for their project only needs to raise $4M. They would escrow that $4M with one of our approved lawyers, under cover of an agreement strictly between the lawyer and the funds owner – the lender has no presence in that agreement so the borrower retains full control. Their funds are never spent into the project and therefore never placed at risk. While their initial funds remain in escrow (earning a 5% / year interest rate), we then lend them the full $8M they need to complete the project; the lender assumes all the risk of the project, and no matter whether the project is a success or failure the client always retains their qualifying capital at the end of the Loan cycle.