The STEF program is designed to help select businesses with proven track records gain access to a pool of lenders whom specialize in bridge loans. Aside from these lenders, we may on occasion offer introductions to potential investors. The program is designed to assist with funding gaps in the range of $100,000 to $5m.
How is it structured?
STEF consists of two complimentary pieces designed to work
together:
1. A pool of specialized lending partners ready to consider providing short-term funding. Applicants can expect a response typically within 1 business day and resolutions within 3 weeks from listing their information on our website for general dissemination.
2. In order to ensure that participating businesses are well prepared for bridge loan requests, we have developed a structured application process that outlines the basic criteria lenders use when reviewing request for short term funding. This program offers no guarantees but will give an applicant's financials a better chance at securing a short-term loan, especially when put through the filters of our participating lenders.
How does it work?
Applicants can request their interest in STEF be made available publicly in our network. All information provided is then listed for general distribution to our lender network and on a case-by-case basis also our investor network and added to an internal database maintained by General Software.
Who is eligible?
Businesses in the following industries that can provide at least three years of financial history:
1. Healthcare and biotech / life sciences companies.
2. Technology firms with products on the market at time of loan request. (Products sold prior to the request date are also considered). Start-ups engaged in product development, sales and marketing will be considered if they meet our other criteria included below. We have found this sector to be particularly challenging and we recommend an evaluation before any attempt is made.
Are there any restrictions?
Please see below for a list of businesses not eligible for consideration:
1. Companies already funded by private equity firms or VCs within 3 months prior to listing on our site.
2. Short term bridge loans to fund working capital or for acquisitions are not eligible
3. Expansion of existing facilities, R&D, working capital and other activities typically funded by private equity firms or VCs.
4. Companies that have filed for protection under the U.S Bankruptcy Code within past 3 years or are otherwise subject to regulatory filings on behalf of debt holders (i.e., submission of annual financial statements). This restriction includes companies whose assets are being sold off by a court-appointed trustee and/or debt payment plan approved by a regulator (i.e., Chapter 11 reorganizations, 2345 proceedings, etc.). This restriction does not apply to companies that are seeking bridge funding as part of their exit strategy. Examples of such companies are those in the process of a merger, sale or spin-off where the proceeds will be used to pay off debt holders in an orderly fashion.
What happens if I place my information on your website and don't receive any interest?
There is no obligation to move forward with STEF and listing your information online is free and accessible only by registered users who have passed our verification processes. General Software will remove this information from its website after a period of time (typically 90 days) if it has received no requests for additional information about you or your company.
What are the Terms?
Bridge loans typically range from $100,000 to $5,000,000 and can be paid-back in as little as 30 days. A flat fee is charged for each loan requested and processed through the STEF program. This fee will be determined on a case by case basis depending on the strength of your plan/project. It is suggested that interested applicants contact more than one lender for an opportunity to have their needs met at lowest possible cost. For bridge funding requests over $5 million, we strongly encourage you to seek additional capital elsewhere outside of this program.
