Due Diligence Revolving Advance Pool

computer with spreadsheet

The Enterprise Center Capital Corporation has launched a new $500,000 Due Diligence Revolving Advance Pool (Advance Pool) that will help MBEs pay for due diligence expenses by advancing funds to them on favorable terms.

The Advance Pool is designed to be a self-replenishing fund of favorable short-term financing with flexible terms and competitive rates that can be used in combination with more conventional sources of funding. Funding can be used by the MBE to cover the cost of due diligence expenses and other closing costs that may be incurred during the investment process. MBEs will repay the amount advanced to them at the closing of the debt or equity financing transaction, together with modest interest based upon the amount advanced and repayment window.

If an MBE receives funding from the Advanced Pool and the financing transaction remains incomplete at 12 months, then the advance will be converted to a three-year unsecured note that will accrue interest at an annual rate equal to 3.5% paid monthly. The Advance Pool will support up to 75% of the MBE’s upfront due diligence and related costs to closing. The MBE will cover the remaining 25%. Final determinations will be based on estimated costs and the type of transactions.

The Enterprise Center Capital Corporation has a team of loan and financial experts that will review reach request for assistance, and require some standard documentation for a business to be considered. All types of business are eligible to apply, but must meet the following criteria:

  • Applicant must be a for-profit business enterprise in which at least many of its voting securities or equity economic interests are owned by one or more minority groups
  • Applicant must have passed the ideation stage and must currently be receiving $500,000 recurring revenue on a trailing twelve-month basis.
  • Applicant must have at least (2) full-time employees who have been employed for at least (6) months.
  • Applicant must have an investor pipeline or identified a lending source

If you are interested in accessing the Due Diligence Advance Pool, please contact capital@theenterprisecenter.com