PINE BLUFF ENTREPRENEURSHIP COLLABORATIVE

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Pine Bluff Entrepreneurship Investment Initiative
(PBEII)

Are you starting or growing a business but cannot qualify for a loan?
Are you interested in obtaining and investment or partner?

PBEII is a program of the Pine Bluff Entrepreneurship Collaborative (PBEC) that will provide up to $25,000 in equity for start up and existing businesses located in Pine Bluff. For more information, call (870) 348-5406.



Investment Criteria
Entrepreneur must provide:

• 10% equity investment in project
• Personal credit history review (credit history not credit score)
• Personal financial statements to be included in package
• All startups have to provide feasibility plan and clear exit strategy for investor
• Existing businesses provide a business plan with clear exit strategy must be included
• Proof that entrepreneur is not delinquent on any taxes or is current on all payment plans and should be in good standing with the Arkansas Secretary of State
• Entrepreneur/Business owners who have not started their business or have not been in business at least 6 months should attend a one-day training session
• Entrepreneur/Business owner must agree to work with a technical assistance provider after an investment is made
• Business must have ability and willingness to provide quarterly financial statement
• Entrepreneur/Business owner must agree to Investor participation on company Board or Directors or on advisory board

Investment Process

1. Clients with completed business plans are referred to ERDC or alt.Consulting to perform due diligence on the investment opportunity. Upon completing the due diligence the TA provider will make a recommendation to the Investment Board.

2. The Client will make a presentation to the Investment Board that includes a Power Point Presentation.  The Power Point should address the feasibility of the business or expansion including the financial projections, which should show a clear exit strategy for the investor.

3. The Investment Board will make decision based on business plan and presentation.  The PBEII decision will stipulate:
1. Ownership position (no more than 15%)
2. Expected return on Investment
3. Proposed exit strategy
4. Board representation
5. Technical assistance required

4. As an equity investment, there is no set repayment method or interest rate. Investments will be made for three years and are expected to be repaid through an agreed upon exit strategy.

5. Entrepreneur continues to work with technical assistance provider to ensure good management systems and monthly monitoring of business situation.