Freshstart Venture Capital Corp., a specialized small- business investment company, received $3.9 million in debt financing from the Small Business Administration.
Specialized small-business investment companies are private firms, licensed by the SBA, that make equity investments in minority-owned small businesses.
The 10-year debentures, purchased by the SBA, will bear interest at 7.38% per year. Freshstart can defer interest payments if it is not making a profit.
Specialized small-business investment companies can receive as much as $4 in SBA funding for each dollar of private capital. The firm held an initial public offering in November.