Business Consortium Fund (BCF)
The Business Consortium Fund, Inc. (BCF), Inc. is the non- profit financial services program offered by Council Enterprises, Inc. The BCF provides working capital loans and access to other types of financing and services exclusively to certified minority business enterprises (MBEs) that have difficulty obtaining financing from conventional sources on reasonable terms.
BCF Loan Guaranty/ Loan Participation Program (LGPP)
Through its LGPP the BCF provides contract/purchase order financing, working capital loans, inventory loans, intermediate term loans, and equipment loans. In this creative program, the BCF guarantees or participates in a major portion of loans made by approved lenders. The BCF’s credit enhancement reduces the lenders risk and enables loans to be made which otherwise would be denied based solely on the applicant’s credit.
LGPP Highlights:
Borrower Eligibility: Limited to certified MBEs of Council Enterprises, Inc., or the National Minority Supplier Development Council (NMSDC). Although specific contracts or purchase orders are not required, the borrower needs to show evidence of a supplier/vendor relationship with a NMSDC national and/or regional corporate member.
Credit Decision: The credit and loan decision is made by the Certified Bank Lender (CBL) subject to the BCF’s guaranty or participation. The BCF does not make direct loans, therefore a lender is required.
Amount: Total amount is determined by the CBL, however the BCF’s maximum exposure may not exceed $750,000 in a participation loan or $562,500 on a guaranteed loan. In each case, the CBL must retain a minimum of 25% of the loan amount.
Terms and Conditions: The length of time for repayment depends on the use of proceeds and the ability of the business to repay; however the term of any given loan may not exceed four years. Single borrowers may remain in the program for up to four years from the date of the initial loan. The rate of interest is set by the CBL; however, the maximum rate may not exceed 3% over prime.
Other BCF Loan Programs and Services:
The BCF also provides long-term financing through its Specialized Small Business Investment Company, Triad Capital Corporation; and professional consulting services through BCF Business and Financial Advisory Services, Inc.
Information:
If you are interested in the BCF, please contact Dr. Floyd Rose, President of Council Enterprises, Inc., at (608) 241-5858 or wsdcrose@aol.com or councilenterprises@sbcglobal.net and we will gladly assist you.
