No. Your money will be locked up for six months. As we grow the program we may look at having options for early exit, but for the early days of the program we are requiring investors to wait the full six months before they can withdraw their funds.  

Initially Sheltowee will not charge any fees for this program on the investor side. We are offering this as a service to our clients and to our members. However, it should be noted that much of the funding that is provided to the company through this program may be spent with the Sheltowee Business Network or one of Sheltowee’s affiliates to assist the companies in securing additional equity funding.  

Sheltowee has discretion on how much is loaned to a single entity. In general the maximum amount is anticipated to be $300,000.  

The Sheltowee Business Network, LLC provides a guarantee for the loan, so it is incumbent on us to insure the companies are successful in their efforts. This aligns the investors interests and Sheltowee’s interests. If Sheltowee is not successful they have to pay the money back to the investors.   

Sheltowee partners with the company to develop a use of funds plan, and then we oversee the company to insure that the funds are used for the purposes identified. The goal of the funds is to be directed towards efforts that will allow the company to secure equity investment. In most instances the companies will use the funds to secure additional investment.    

We will be providing a conversion option at the time of maturity of the note. The company in which you can convert will be dependent on the participants in the program. Venture Debt investors will have the opportunity to convert at enhanced valuations for the companies.   

You can download a template of the legal document for the debt instrument here and the equity conversion instrument here.