NEW YORK, Oct. 8, 2013 /PRNewswire/ -- World Business Lenders, a provider of working capital to small businesses across the country, announced today that it has secured $20 million in debt financing and will complete a $5 million equity capital round from accredited investors. The equity round includes a $3.75 million investment by Business Development Corporation of America (BDCA), which also led the credit facility with participation from the company's current lender, Harvest Capital Credit Corporation.
World Business Lenders serves a diverse cross section of Main Street America and is committed to the growth of these businesses throughout the United States. "Slightly more than two years after making our first business loan, this equity and debt financing highlights the institutional validation of our business model," said Doug Naidus, CEO and founder of World Business Lenders. The additional financing will allow the company to expand its resources and more effectively deliver critically needed working capital to a greater number of small businesses.
"Our company welcomes a new partnership with Business Development Corporation of America and is happy to continue to grow its relationship with Harvest Capital Credit Corporation, both of which have strong track records of fueling long-term growth and enhancing value of innovative businesses such as ours," said Mr. Naidus.
In anticipation of raising this new capital, World Business Lenders recently began to scale its sales workforce and leased additional space at its headquarters in Times Square, New York.
About World Business Lenders
Based in New York City, World Business Lenders (www.wbl.com) is a lender specializing in serving the small business community. The company was founded by a group of successful international entrepreneurs with extensive experience and background in financial markets. Its mission is to help the underserved small business sector and satisfy the growing need for small business capital.
About Business Development Corporation of America
Business Development Corporation of America (BDCA), a SEC-registered non-traded fund, invests in both the debt and equity of private companies throughout the United States. BDCA was formed to allow individual investors the opportunity to invest in the debt and equity securities of privately owned middle market companies—those companies with annual revenues from $5 million to $1 billion.
About Harvest Capital Credit Corporation
Harvest Capital Credit Corporation (HCAP) is a publicly traded specialty finance company that provides customized financing solutions (including senior and subordinated debt) to privately held small and mid-sized companies located throughout North America, generally targeting companies with annual revenues between $5 million and $100 million and annual EBITDA between $1.5 million and $15 million.
Overview of Equity Capital Round
World Business Lenders is conducting a private offering of its securities ("Securities"), which are being offered and sold by the company in reliance upon an exemption under the registration requirements of the Securities Act of 1933, as amended ("Securities Act"), and in connection with such private offering the company is not required to comply with specific disclosure requirements that would apply to an offering of securities that is registered under the Securities Act. The U.S. Securities and Exchange Commission has not passed upon the merits of or given its approval to the Securities being offered and sold, the terms of the company's private offering or the accuracy of any information provided by the company to investors in connection with such private offering. The Securities may be sold only to "accredited investors" as such term is defined under Regulation D promulgated under the Securities Act, which for natural persons, are investors who meet certain minimum annual income or net worth thresholds. The Securities will not be registered under the Securities Act and, therefore, will be subject to legal restrictions on transfer and resale and investors should not assume they will be able to resell their Securities. An investment in the Securities in this private offering involves risks and each investor participating should be able to bear the loss of their investment.
- Investment & Company Information