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Business Consortium Fund (BCF)
The Business Consortium Fund Inc. (BCF) is the non- profit financial services program offered by the PRMPC. 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 the Pittsburgh Regional Minority Purchasing Council) 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.
Pittsburgh Area Certified Bank Lender (CBL):
PNC Bank
If you are interested in the BCF, please contact the Pittsburgh Regional Minority Purchasing Council at 412-391-4423 and we will gladly assist you. |
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