Mezzanine Finance

RSF Mezzanine Finance is an excellent complement or alternative to pure equity financing for growth-stage, for-profit enterprises seeking to create maximum social impact. If you are unable to find equity investors, or you don’t want to sell equity, this program can be appropriate even when other debt options are not. Financing ranges from $500,000 to $1 million, primarily through a mix of debt, warrants, royalty streams, fee notes or convertible notes.

RSF Mezzanine Finance Criteria

RSF Mezzanine Finance may be appropriate if you are seeking growth capital and:

• Want to avoid stock dilution;
• Intend to preserve the mission and keep control of the business;
• Have no quick exit plan;
• Have modest market and/or growth projections;
• Have had “hiccups” in sales or profitability in the past 3 years;
• Have insufficient or intangible collateral; and/or
• Have historically concentrated sales.

Successful applicants to RSF Mezzanine Finance will demonstrate the following:

• Operations in alignment with RSF’s criteria for social enterprises (see above);
• Incorporated and have main offices located in the US;
• Meet a need in one or more of the following sectors: organic and/or biodynamic food, personal care, consumer products, green building materials, health and wellness;
• Have demonstrated beyond proof of concept and are ready to scale, as evidenced by $5 million+ revenues and at least two years of operating history;
• Can show a clear path to EBITDA positive, if not already operating at that level;
• Plan to use financing for organic growth, acquisition, recapitalization, capital expenditure, working capital, or some combination thereof.

Learn More

If you would like to learn more about RSF Mezzanine Finance, please contact Joe Avenatti at 415.561.6172 or joe.avenatti@rsfsocialfinance.org.

Please be prepared to submit the following:

• At least 2 years of historical financial statements;
• 3-5 years of projections;
• Narrative business plan or slide presentation;
• Organizational chart and board compositions, including biographies of key employees;
• Capitalization table and historical funding sources;
• Financing needs, including projected sources and uses.

• Printed from http://rsfsocialfinance.org/services/lending/mezzanine/