The Fundworks, a technology-enabled small business finance company, closed a $25 million credit facility with a commercial bank and the sale of $20 million of senior secured notes to a group of U.S.-based institutional investors. The credit facility is expandable up to a maximum of $50 million, representing a total capital raise of up to $70 million. These transactions refinanced the company’s existing senior credit facility and subordinated debt and provide excess capital to fund the continued growth of the company’s small business funding platform.
“We are very pleased to announce this financing, which will allow us to significantly expand our ability to provide funding to our small business client base,” Evan Smiedt, co-founder and CEO of The Fundworks, said. “This new capital strategically positions The Fundworks to be the funder of choice for small businesses as they re-accelerate growth after a difficult and uncertain 2020. Quick access to capital is key for small businesses to succeed and we are very happy to be well capitalized when our clients need us the most.”
“Given the volatile markets and challenging funding environment in our sector, our ability to close these transactions with multiple, large and established financial institutions is a strong endorsement of the The Fundworks and the continued efforts by our employees and partners to put our clients first,” Bradley Smiedt, co-founder and chairman of The Fundworks, said. “We look at the closing of this financing as a significant next step in the growth and success of our company.”
Brean Capital served as The Fundworks’ exclusive financial advisor and placement agent on both transactions.
