Debt Capital Management Services for Businesses

Debt Capital Management

Businesses seeking capital for growth, liquidity, or financial relief to help maintain operations or plan for their future have funding options, but taking on loans or refinancing current ones is a strategic and tactical decision that’s not made easily.

Understanding available options, applying for loans, and securing financing requires significant time and resources, with many considerations related to the specifics of your business. Concerns to manage and meet loan obligations could also mount after you’ve been approved.

Our professionals can guide you through these complex processes so you can manage your debt capital effectively and stay focused on the things that matter most to your business.

Your Path Forward

Conducting a thorough review of your current financial standing, we’ll help you understand and evaluate your loan options—and weigh them against your current debt structure—to determine what type of loan is right for your business.

Once decided, we’ll guide you through the procurement process and support you with the necessary resources to keep you on track for your commitments.

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Federally-Sponsored Financing Programs

In response to the COVID-19 pandemic, the Coronavirus Aid, Relief, and Economic Security (CARES) Act marked the largest economic relief bill in US history and includes three major programs aimed at providing loans to impacted businesses of all types.

Each program has its own terms, eligibility requirements, and other specifics that are important to keep in mind.

  • Paycheck Protection Program (PPP). Navigate the significant accounting and documentation needs required by lenders when requesting forgiveness if you’ve successfully secured a PPP loan.
  • Main Street Lending Program (MSLP). Businesses with up to 15,000 employees or $5 billion in 2019 annual revenue are eligible to receive loans of $250,000 to $300 million, depending on loan type, from the US Department of the Treasury.
  • Economic Injury Disaster Loan Program (EIDL). Provided directly to small businesses by the Small Business Administration (SBA), these loans can reach up to $2 million over 30 years.

Additional Financing Options

Traditional lending options outside the CARES Act are also available.

Our professionals have deep experience working with companies and lenders, and have a strong understanding of how borrowers can best position themselves to be accepted for a loan program.

  • Senior Bank Lenders. The least expensive option after government programs, traditional banks focus on loans in the $5 to $500 million range, but often require significant collateral and cash flow. Senior bank lenders focus on seniority, security, and underlying collateral. They deploy covenants meant to help reduce risk and could require personal guarantees.
  • Junior Debt Capital Providers. These modestly expensive sources of capital target a 7%-15% required annual return for loans typically in the $10 to $50 million range. They focus on the remaining available collateral—after senior bank lenders—and cash flow. 
  • Equity Capital Providers. A more expensive form of capital, these providers target a 15%-30% annual required return on their capital with a focus on a business’ cash flow and long-term growth prospects.

All benefits, costs, and restrictions should be weighed against other options available in the market given your business’ goals and objectives, financial position, growth opportunities, and preparedness for financing discussions.

Insights


Article
The $600 billion Main Street Lending Program intends to replace the PPP and facilitate lending to small- and medium-sized businesses. Learn about eligibility.

Alert
The SBA clarified long-standing ambiguity on its Paycheck Protection Program loan forgiveness application. Learn more about critical updates.

Alert
If you received a PPP loan with an original amount of less than $2 million, the SBA will presume the loan was requested in good faith. Learn details.

Article
Learn about the rules and ambiguities of calculating and determining loan forgiveness scenarios for PPP loans as well as alternative finance options.

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