Long Term Debt and Equity
Triad Investments LP
Long term capital is available through Triad Investments LP (Triad). Triad is a federally licensed Specialized Small Business Investment Company, and a wholly owned subsidiary of the Business Consortium Fund, Inc. (BCF).
Triad provides long term mezzanine type funding to small businesses that may be socially or economically disadvantaged. Eligibility requirements for consideration are the same as defined by the Small Business Administration (SBA).
Investments are made in three general ways:
- Subordinated debt paid over a minimum period of five (5) years.
- Subordinated debt with equity features in which Triad lends money to a small business with rights to acquire a percentage of the business through the exercise of warrants. The debt must have a minimum term of 5 years.
- A straight equity investment in which Triad purchases equity or preferred stock of the company.
Triad funds are available for:
- Expansion capital
- Permanent working capital
- Long Term capital
The following is the minimum criteria for consideration for obtaining financing from Triad.
- The company must meet the SBA definition of a Small Business eligible for investment by an SSBIC (net worth less than $18 Million and average net income for the last two years of less than $6 Million)
- The company must have at least two years of prior business operations.
- The company must have a business relationship(s) with a national or regional corporate member(s) of the National Minority Supplier Development Council.
At management’s discretion, Triad can waive selected investment criteria mentioned above in making its investment decisions.