Main Street Capital Loan Fund

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Overview

In partnership with Pursuit, the $10-million Main Street Capital Loan Fund (MSCLF) makes term loans of $100,000 or less available for start ups and early-stage businesses, particularly businesses in or of communities that have historically faced challenges in obtaining adequate credit or favorable terms. MSCLF loans can be used for working capital, acquiring equipment and other essential assets, and hiring talent.

How it works  

To apply for an MSCLF loan, businesses must complete a pre-application on Pursuit’s online platform (linked below). If approved, the MSCLF loan will be at a fixed interest rate and require only interest payments for the first year. After the first year, Pursuit will evaluate the borrower’s cash flow and revenue projections to determine if they may continue making interest-only payments for an additional year. Any deferred interest will be added to the loan balance, and both principal and interest will be amortized over the remaining term of the loan in equal monthly payments. 

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Eligibility

Eligible Businesses:  

To qualify for an MSCLF loan, eligible businesses must: 

  • Be owned by a New York State resident 
  • Operate in New York State 
  • Employ 100 or fewer full-time employees 
  • Maintain annual revenue of under $5 million 
  • Be a startup or early-stage business in operation for fewer than 4 years 
  • Provide a personal guarantee from owners with more than a 20% ownership stake 

Eligible uses of MSCLF loans:  

Loans can be used for: 

  • Startup costs  
  • Working capital 
  • Franchise fees 
  • Equipment and machinery
  • Inventory fees 
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Loan Terms & Restrictions

MSCLF Loan Terms:  

MSCLF loan terms include: 

  • Loans up to $100,000 
  • Interest fixed at 9.90% APR 
  • Maximum term of 6 years 
  • Principal deferred for the first year with interest-only payments and amortized over the remaining term of the loan in equal monthly installments

MSCLF Loan Restrictions: 

Loans cannot be used to: 

  • Refinance or eliminate existing debt or equity
  • Repay delinquent income taxes unless the borrower has a payment plan in place
  • Repay taxes held in trust or escrow (e.g., payroll or sales taxes)
  • Reimburse owners for an equity investment
  • Purchase any portion of the business’s ownership interest
  • Acquire or hold passive investments in real estate