SGC vs.Traditional Funding

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  Structured Growth Capital Bank
 Funding Applications No Industry Limitations Traditional
No; Funding is non-recourse to borrower
Yes; Funding is recourse to borrower and often personal
Yes: Funding is recourse to borrower
 Funding Scope $5 million and up
Limited by department and credit review committees
Highly variable and dependent on fund size
 Loan to Value 100% net present value of future payment stream
Typically 10% - 50%
Typically 10% - 70%
 Interest Rate Fixed; Competitive Not Fixed; May be competitive Not Fixed; Not Competitive
 Fees or Equity Grants None
Closing & renewable fees Typically Fees AND Equity
 Time to close 2 – 4wks 90+ Days 6mos – 18mos
 Post Funding Reporting None
 Repayment Structure Customized to suit specific cash flow needs of project including option to defer start of repayment for up to 10 years
Restrictive/Rigid 5-7 yr 10x Investment return expectation
 Covenants & Reporting to  Credit Agencies None Restrictive/Rigid
Extensive and complicated
 Security/Collateral Assignment of unconditional promise to pay from creditworthy entity
1st  Lien position on  tangible assets Control
 Oversight None
Audits, frequent reviews – life of loan
Board representation
 Documentation Efficient – prepared in-house
Litigious and Extensive Litigious and Expensive
 Relationship Dynamic Team/Collegial
Supportive relationship manager , adversarial senior management
Structured Growth Capital, Inc
615 The Pavilion, Jenkintown, PA 19046
Tel 215-885-4795, Fax 484-685-7102
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