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Invest in Seedco Financial |
Seedco Financial offers four types of loan products to a diverse array of borrowers in targeted areas:
| Product Tier | Size Range | Targeted Borrowers | Types of Investors | Locations |
| Microlending | < $25,000 | Small businesses (through non-profit partner or direct) | ESDC CDFI Fund SBA |
Alabama Louisiana New York |
| Small business loans (including nonprofits) | $25,000 - $200,000 | Nonprofits Small businesses |
Private Foundations CRA Institutions CDFI Fund Other Entities |
Alabama Denver Louisiana New York Tennessee |
| Mid-level commercial and facilities development | $200,000 - $1,500,000 | Real estate developers; small businesses | CRA institutions Government agencies |
Alabama Denver Louisiana New York Tennessee |
| Anchor projects | > $1,500,000 | Anchor institutions | NMTC Investors Pension Funds Bank Partnerships |
15 target states; primarily NE, SE, and Midwest U.S. |
Seedco Financial's on-time repayment rate has consistently been over 95%.
There are various ways that Seedco Financial seeks to raise financing from potential investors to capitalize and otherwise support its ongoing community lending activities:
Program Related Investment (PRI)
Program Related Investments (PRIs) are typically 5- to 7-year notes with a full or partial balloon and with interest paid quarterly. Seedco Financial provides standard quarterly portfolio reporting and annual audited financial statements to the lender. For banks, a PRI to Seedco Financial will qualify under the CRA lending test. Seedco Financial also offers a match to local/regional PRI capital with national PRI capital on a $1-for-$1 basis.
Equity Equivalent (EQ2)
Equity Equivalent (EQ2) investments typically take the form of 10-year subordinated debt with automatic renewal, a 100% balloon, and interest paid quarterly. Bank Investors are entitled to "leveraged CRA credits" and qualify under CRA Investment Test. EQ2 investments also entitle investors to pro-rata share of incremental community development loans made by the CDFI.
Co-Lending/Single Event Financing
Seedco Financial offers gap financing in partnership with banks or other lenders to support individual projects. The bank investor would be the senior lender in the project and Seedco Financial will take either a co-senior position or a subordinated position. Typical projects include real estate developments in low-income communities, often with involvement of community-based organizations. Investors in these projects should be open to the inclusion of Seedco Financial's "community covenants."
New Markets Tax Credits (NMTC)
Seedco Financial's for-profit subsidiary, the Empowerment Reinvestment Fund (ERF) partners with banks to invest New Markets Tax Credits (NMTC) in anchor development projects. Bank partners can purchase credits (as a NMTC equity investor) and/or Bank can provide senior debt in NMTC projects. Seedco Financial as the parent organization provides financial and technical assistance along with NMTCs to enable the deal to move forward.
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