Small Business Development Company

July 5, 2017
Better Web, Small Business

The Washington State Department of Financial Institutions (DFI) is currently taking applications to charter a business development company (BDC).

What Is a BDC?

A BDC is a new financial institution charter that can be comprised of banks, thrifts, credit unions, venture capitalists, private entrepreneurs, and even government-sponsored entities (GSEs).

The purpose of a BDC is to lend or invest in small business, agriculture, community development and/or historical preservation throughout Washington State by:

  • Making qualified loans.
  • Investing in qualified projects.
  • Facilitating direct participation loans by third party qualified loan participants.

The new approach encourages sustainability through flexibility and choice. You now have the option of participating as Founder (Promoter and/or Incorporator), Capital Equity Investor, Debt Financer, Lender, or Direct Co-Lender in Participation Loans Facilitated by a BDC. DFI believes that creative business plans may emerge that are market (need) driven.

What Are the Minimum Requirements?

Minimum requirements include:

  • Corporation or LLC: A for-profit Washington State corporation or limited liability company with acceptable articles and bylaws.
  • Incorporators: Five or more incorporators. Three incorporators must be federally insured depository institutions.
  • Mission: Must be dedicated to lending and/or investment for small business, small agricultural, community development, and/or historic preservation.
  • Business Plan: Must demonstrate a reasonable likelihood of safe and sound operation and ability to fulfill its stated goals, consistent with an approved mission.
  • Management: Proposed management must demonstrate the qualifications to fulfill mission and business plan.
  • Capitalization: Core capital must be consistent with the goals of the business plan. Minimum capital-to-asset ratio of 8%.
Source: www.dfi.wa.gov
INTERESTING FACTS
INTERESTING VIDEO
Why small business Company Structure is needed ( Cash
Why small business Company Structure is needed ( Cash ...
Cheap | business development company | business
Cheap | business development company | business ...
JDE LTD : A Phoenix Small Business Marketing Company
JDE LTD : A Phoenix Small Business Marketing Company
Share this Post