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| Loan Amount |
Maximum of $50,000 per investment |
| Use of Funds |
Development of new products or technologies, including: product research and development, working capital to develop new products, market research and development of new products, prototype development and testing, other related uses as deemed appropriate by the Seed Capital Fund |
| Term of Loan |
Negotiated, may include equity position or royalties |
| Rate of Interest |
Negotiated |
| Down Payment (Equity) |
1-1 equity or cash match for every dollar of Seed Fund investment |
| Typical Structure |
Direct loan or equity position deferred for 18 months |
| How Long Does it Take |
30-60 days |
| Collateral |
Required; standard policy to place liens on any proprietary or patented product or service |
| Personal Guarantees |
Required of principal owner(s) |
| Eligible Projects |
Emerging entrepreneurial ventures needing financing for new
product concepts, development, and market research |
| Ineligible Projects |
Absorbing risk or losses from weak or poorly managed companies, refinancing existing debt, alcohol-related businesses, pornography, speculative ventures or gambling operations, conventional agriculture |
| Incentives |
Investment |
| Fees |
Legal fees associated with documenting and closing the investment |
For more information on this program, contact BLADC or visit the Initiative Foundation’s web site.
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