Nmsc (Lisc) - Anyone Worked With Them? $15K Just To Apply For Funding..? - Search Fund Community

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11/26/2020 Redacted Redacted

searcher The University of Auckland - The University of Auckland Business School

NMSC (LISC) - ANYONE WORKED WITH THEM? $15K JUST TO APPLY FOR FUNDING..?

New Markets Support Company (a subsidiary of LISC) could be an interesting as alternative non-SBA lenders.  
Importantly, no PG required.
Also no citizenship requirement = amazing! 
Too good to be true?
The LOI requests $15K non-refundable deposit before they will move forward or present to committee.
My offer to pay in stages was refused.  Deferral was refused.
Fund is new - 5 months.
I've dealt with 80 lenders over the last 16 months - $15K up front for each is $1.2M (still have not closed) so I'm wary.
LOI also requires I accept liability for any and all costs whatsoever arising from DD (wide indemnity).
Thanks

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searcher Seton Hall University - Stillman School of Business - 11/27/2020

Do you have a link for this loan? I'm familiar with LISC and have never come across this fee deposit. I've met several people who have worked with this organization in the past.

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searcher The University of Auckland - The University of Auckland Business School - 11/27/2020

Thanks Vijar, here are the links -

New Markets Support Company (NMSC) which is 100% owned by LISC - https://www.lisc.org/our-model/investment-companies/

Specifically it's the Good Jobs Fund - https://www.lisc.org/our-stories/story/kaiser-permanente-announcement/

Everything seems great but I think the deposit and unlimited costs liability is driving away a lot of potential deals.

Happy thanksgiving!

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searcher University of California, Santa Barbara - 11/27/2020

Sounds like they are a finder not the primary capital provider? I would be weary of giving a finder a down stroke under the premise of getting a deal that seems to good to be true

like reply | 1 like

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