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Can an origination partner focus on only one industry of entrepreneurs?
Origination partners have the flexibility to propose criteria based on their pipeline as long as it is within the GroundBreak overall criteria, meaning industry-specific or industry-agnostic
Are these loans actually grants or are they forgivable loans? Is the language precise?
While the capital is from GroundBreak’s grant pool, the product is a forgivable loan that can be fully forgiven within three years. Terms should be less stringent than a traditional loan.
Can we include our administrative fee in our proposal?
Yes, it is best to put your administrative fee as part of your proposal.
Do you have a maximum fee that you support?
We do not have a maximum fee and are open to market rate negotiations during the process.
When you say partners will receive an origination and servicing fee for each loan closed, do you mean that we would need to invoice for these fees only AFTER the loans have closed?
We are open to a standard fee for each loan closed or an overall administrative fee to administer the program.
Can origination partners work together on an RFP?
Nothing prevents origination partners from collaborating on an RFP.
What are the requirements to receive a forgivable loan (initial $25k)? What are the conditions of forgiveness for the first $25k and second, matching $25k?
GroundBreak will work with selected origination partners to co-create requirements and conditions. The goal of the forgivable loan is to deliver capital as fast as possible to the entrepreneur with as few restrictions as possible. The intention is for the entrepreneur to use this forgivable loan to leverage other forms of capital. We anticipate forgiveness will occur in a three-year window with as little restriction as possible while supporting the sustainability and growth of the venture.
How many forgivable loans will each partner administer? How are funds provided — for example, the partner has a pool of funds it manages, or Minneapolis Foundation disperses funds as the partner sends them approvals?
We anticipate each partner will originate up to 20-25 loans within a three-year period. We, however, will negotiate the capacity of each partner selected. The partner will work with GroundBreak to access the pool of funds. Once all origination partners are selected, GroundBreak will work with the group of partners to determine the best deployment methodology for the pool.
How are partners compensated for providing business support services for recipients of forgivable loans?
The origination fee is intended to cover the incremental costs incurred by the origination partner to deploy the forgivable loan in a timely and streamlined manner. GroundBreak assumes that a core and essential part of applicants’ existing business is providing technical assistance, predevelopment work, and other due diligence on these types of projects and not a new, unfunded body of work. As we live into this work, GroundBreak is committed to collaborating with originating partners to identify resources for any additional capacity-building needs that emerge.
Who is responsible for developing the application for forgivable loans, managing applications as they come in, communicating with applicants whose applications are not complete to gather missing paperwork, and informing applicants who do not qualify for funds? If the partner is responsible for managing this process, how are they compensated for that work?
GroundBreak will develop the application for forgivable loans, ensuring the same application is available across the board. We anticipate the origination partners will have a pipeline in place, and the forgivable loan will be a resource to unlock other forms of capital. The forgivable loan is designed to be as least restrictive as possible so that wealth builders and origination partners have a new resource previously unavailable to them. We are also open to discussions and learning during this process. As we live into this work, GroundBreak is committed to collaborating with origination partners to identify resources for any additional capacity-building needs that emerge.
In the section titled, Resource Availability, it states, “Partners should also offer resources as part of their core function, such as business incubation programs, technological tools, or ongoing training that support startup founders as they scale their businesses.” Are there specific documents you are looking for that would demonstrate this?
No, GroundBreak does not require specific documentation to demonstrate resource capability. We encourage using the narrative section to outline and describe your range of services and capabilities.
Is the northwest suburb of Minneapolis included in this opportunity?
Currently, GroundBreak covers the seven metro areas, which includes the suburbs of Minneapolis.
