Equity Capital Source Banks

The investment community has shortened the business growth cycle, and now punishes public trading companies with slow revenue growth. This has had a chilling affect on financial institutions such as traditional banks, and private equity fund managers who make business loans and funds available to small businesses.  Because of this new climate, the NAHBB is making a new kind of capital financing service available, targeted exclusively for small and home based businesses. The best way to help small and home-based businesses start and grow successfully in the 21st century is to establish both public and private equity funding sources. 

The Fast Track Business Development Program includes a business and equity capital-banking program. The business capital source banking system offers two types of small business source banks; one will provide equity investment only and the other includes private-equity investors, pension funds, and more than 100 different investment funds, for small business start-ups and growing companies. To be eligible for equity funds from the Business Capital Bank or the Venture Capital Bank, the business owners must submit a third party verified business model, from an authorized business development program. These banks also assist companies who prepare private placement memorandums to raise large sums of capital. Both banks use equity funding from public and private investors including investment clubs.  

Venture Capital Bank

There are two distinct banks allowed under this program, there is a Business Capital Bank that offers a variety of equity funding packages to small businesses which has more than 100 mutual and equity investment funds. The other is a  

Venture Capital Bank, which only offers equity financing from private investors and venture capital firms. The Venture Capital Bank is an integrated part of the Fast Track program and no branches are allowed outside the program. The Venture Capital Bank is administrated in local communities by a public/private - Joint Venture Partnership, which supervises the Fast Track program. This equity investment bank only makes equity financing available to businesses with certified business models and franchises from authorized business development programs. Certified business models and franchises are developed in small business incubators, for a minimum of six months.   

Business Capital Banks  

The Business Capital Bank uses venture capital from private investors, pension funds, government grants and other investment funds. Only businesses with certified business or franchise models are eligible for funding through this private banking service. The bank will establish more than 100 equity-investment funds, for starting and growing small business ventures. These funds are established for private equity financing services through our Business Capital Banks. The Business Capital Bank is a small business source bank that addresses the needs of disadvantaged and hard to finance business ventures in urban and rural areas.  These banks are part of the small business development program and offers funding packages through the Fast Track program. They can be independently owned and managed by other business financial institutions such as credit unions and community savings and loan outlets.   

Business Models and Franchises -small businesses are entering a new era of increased competition where local, national and international markets are combined as one. The major difference between operating a new business in the old economy and the new economy is the ability to fully participate in the global marketplace on the first day it opens for business. Small business owners who want to grow their businesses beyond their local markets are encouraged to enroll in the small business incubator program and build a certified business model. Our Small Business Development Incubator, (SBDI) prepares our business models to meet and exceed the performance standards set by their owners’ business plans. Selected ventures must undergo a rigorous development program to produce a working business model.