The Griggs-Steele Empowerment Zone can participate in financing primary sector businesses by making an equity investment in the company. The company must create new wealth in the region and must be legally structured to accommodate an investment transaction.

General Information

• Applicants must provide a business plan that addresses the product, market, management, GSEZ impact, and financial plan.
• Applicants must be deemed in the review process to have the character and capacity to sustain a successful project.
• Investments must be economically productive or socially desirable to the area.
• Applicant must have a committed lead lender
• The company is responsible for all closing costs associated with the equity investment.
• The equity investment will not exceed 50% of the funding needs.
• A 10% equity injection is required of the applicant in either cash or balance sheet equity.

Investment Parameters

• Up to $250,000 per company in project funding based on $20,000 per FTE job projected to be created.
• Up to $50,000 per company in seed or development stage funding of company.
• Generally, a preferred stock investment with a pre-determined rate of return is the investment vehicle of choice.
• A clearly defined exit strategy is required at closing.
• Funds will not be released until firm commitments are in place from all other sources.

Funding Decisions

Once application is deemed to be complete and the GSEZ Board of Directors approves further review, due diligence will be performed on the company and its project by the GSEZ office and possibly by a third party with specific industry knowledge. The GSEZ Board of Directors would then be responsible for final approval or denial of an investment.

For more information on the GSEZ Equity Fund contact 701.524.2240.