Greenline Ventures, a Denver, CO-based minority-controlled and employee-owned investment management firm that specializes in delivering capital to businesses and communities that are underserved by traditional capital providers, has launched its second Small Business Capital Fund (SBCF II).
The $25m fund will provide flexible loans between $250k and $2.5m to small businesses with targeted objectives including job creation, training programs, enhanced benefits packages, minority or women-ownership, reductions in environmental impacts and other forms of assistance to low-income workers.
To date, Greenline’s first SBCF has provided loans to 17 underserved businesses throughout the country. The loans, which mainly consist of subordinate loans in conjunction with market-rate senior loans from local banks, provided growth capital, including inventory, equipment, acquisitions, etc.
Greenline co-invested in the debt capital for the fund and contributed a portion of its NMTC allocation. The NMTC equity investor is U.S. Bancorp Community Development Corporation (USBCDC), based in St. Louis, Mo., and the debt capital is being provided to the fund by a group of mission-driven investors led by Calvert Impact Capital, based in Bethesda, Md.
Greenline Ventures is a certified B Corporation whose wholly-owned subsidiary, Greenline CDF, is a certified Community Development Financial Institution (CDFI). To date, Greenline has received $547 million in New Markets Tax Credit allocation authority from the US Department of the Treasury and has invested over $2 billion in low-income communities nationwide.