||The BCF's mission is to provide access to capital to NMSDC certified ethnic minority-owned businesses that have difficulty obtaining financing from conventional sources on reasonable terms. This is accomplished primarily through the BCF's core Loan Participation Program (LPP) in which the BCF participates in a major portion of loans made by BCF Certified Lenders to eligible minority-owned businesses. The BCF does not make direct loans. All LPP loans are made by commercial lenders subject to the BCF's participation. Click here for a listing of BCF Certified Lenders.
The total amount of a LPP loan is determined by the lender; however the BCF's maximum exposure may not exceed $1,125,000 in a participation loan. The Certified Lender must retain a minimum of 25% of the amount of loan facility. A wide range of debt financing products are available, including contract/purchase order financing, working capital, inventory, intermediate term, and equipment loans.
The BCF's participation reduces the lender's risk and often enables a loan to be made that would otherwise be denied based on the lender's normal underwriting standards. Since its formation in 1987, more than 150 lenders have made loans under the LPP.
Benefits to lenders participating in the BCF LPP include the following:
Any Federal or state chartered bank, Savings and Loan Association, credit union, or insurance company subject to government examination and regulation and in good standing is eligible to be a BCF Certified Lender. Other lenders with commercial loan experience and sound financial strength may also be approved as a BCF Certified Lender.
- Lenders use their own forms, loan documents, and security instruments
- Opportunity to increase IRR on loan transaction
- Additional resource to meet customer needs
- Cross-marketing of products and services
- Opportunity to obtain new customers from BCF referrals
- No minimum loan amount required
- The participation portion of the loan is protected by the credit strength of the BCF
- User friendly program that involves less paperwork than government loan programs
- Affords opportunity to support community and minority business development.
- May help satisfy lenders' Community Reinvestment Act (CRA) requirements
Commercial lenders can learn more about the BCF and how to become a BCF Certified Lender by contacting:
Senior Vice President and Chief Lending Officer
Business Consortium Fund, Inc.
39 West 37th Street, 7th Floor
New York, NY 10018