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.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.