A partnership between the City of Oklahoma City and i2E Inc. has expanded the financing options by $2 million for Oklahoma City-based small businesses seeking capital to grow their ventures and create new jobs.
The city, i2E and the Oklahoma City Economic Development Trust created the $2 million GrowOKC Fund through a Memorandum of Understanding, which was unanimously approved by the City Council on Aug. 13.
i2E committed $1 million to the new fund from its GrowOK Fund, which is part of the federal State Small Business Credit Initiative (SSBCI) funds it manages on behalf of the U.S. Department of Treasury and the Oklahoma Department of Commerce.
Oklahoma City and the Economic Development Trust committed $1 million to the fund from its Strategic Investment Program (SIP) low-interest loan program.
“We believe this partnership will help Oklahoma City-based small businesses close a critical capital gap they need to finance expansion projects and create new jobs,” said Scott Meacham, i2E President and CEO. “GrowOKC won't compete with local banks, but leverage bank financing to ultimately help create jobs and wealth that benefits all of Oklahoma.”
The GrowOKC Fund will support existing Oklahoma City small businesses with growth capital financing of $100,000 to $250,000 per investment through low-interest loans, and equity and convertible debt investments. It will require a dollar-for-dollar co-investment from the small businesses which can be in the form of cash, borrowed funds or new equity invested by the participating companies.
In many cases, the fund will supplement bank financing to achieve specific levels of investment capital.
Funds will be available only for companies retaining or creating primary jobs in areas such as manufacturing, distribution, and warehousing and business services. Retail businesses will not qualify for funding under applicable guidelines.
White House Program Cuts Up to $1k off Monthly Payments! (3.05% APR)
We believe this partnership will help Oklahoma City-based small businesses close a critical capital gap they need to finance expansion projects and create new jobs. GrowOKC won't compete with local banks, but leverage bank financing to ultimately help create jobs and wealth that benefits all of Oklahoma.”
i2E President and CEO