E-Packaging and Fulfillment Company Receives Funding Through City of Chicago Small Business Loan Fund
E-Packaging and Fulfillment Company, a woman- and minority-owned start-up on the city’s Near South Side, was approved in September for the first loan from the City of Chicago Small Business Loan Fund, managed by CCV. Andrea Peters, the company's founder turned to CCV for financing because as a new business she had trouble qualifying for the financing she needed.
Ms. Peters saw a unique niche for herself to enter the pharmaceutical packaging industry because there were no other companies in the Chicago area that were certified as a woman- or minority-owned enterprise and she knew she could easily attract clients that were looking to add supplier diversity. However, despite her enthusiasm for the project, Ms. Peters couldn't convince a bank to fully finance the project. She initially got a loan to fund her venture from an area bank, but it did not cover all of her costs – she was $175,000 short and still needed to purchase equipment.
Unable to get additional funding from her bank because of a high loan to value ratio, Ms. Peters applied for a loan from the City of Chicago Small Business Loan Fund. The City was able to approve the loan despite the high loan to value ratio because in additon to available collateral, Ms. Peter's posessed 15 years of industry experience, and the business showed strong job creation potentila. By taking into account these factors, the City approved the loan and Ms. Peters now expects to open her doors in early 2009.