FUNDING THE future ECONOMY
BY BREAKING DOWN BARRIERS
Empowering entrepreneurs is essential to building a more equitable and thriving economy. By ensuring that all founders—especially those historically underserved—have access to the resources, funding, and support they need, we can drive innovation, create jobs, and foster sustainable economic growth for everyone.
Women-led businesses have the potential to add $12 trillion to the global economy by 2025 (Source: McKinsey Global Institute (MGI) Report). Ensuring we equally support women entrepreneurs is an opportunity to unlock immense economic growth and prosperity for all.
SOCAP FUND
STRATEGIC INTENT
The SoCap Fund is dedicated to breaking down systemic barriers that prevent entrepreneurs from accessing the capital they need to grow and sustain their businesses. By offering patient, flexible, and affordable loans to historically underserved founders, this pilot initiative creates opportunities to learn alongside entrepreneurial partners and influence traditional financial institutions and their underwriting processes.
THE SOCAP FUND IS A PARTNERSHIP
BETWEEN FORGE AND SOUTHERN CAPITAL PROJECT
Recognizing the barriers that many entrepreneurs face in accessing capital, Southern Capital Project and FORGE have developed an alternative approval process to create more equitable funding opportunities.
- Clear and concise process and documentation to ensure accessibility for all entrepreneurs.
- Investment committee of experienced entrepreneurs and ecosystem leaders who understand the challenges founders face.
- Approval based on character, commitment, and ability to repay, rather than traditional credit barriers.
- Ongoing access to resources and networks to support long-term success.
HOW IT WORKS
1. Business owners are connected to Southern Capital Project (SoCap) from other ecosystem partners.
2. Borrowers apply for a loan with the endorsement of SoCap.
3. Loan capital is provided by FORGE.
4. The SoCap Fund partners with technical assistance providers and entrepreneur support organizations (ESOs). ESOs provide referrals, technical assistance, and mentorship.
5. After FORGE makes the loan, the borrower must continue to work with Southern Capital Project during the duration of the loan and provide outcomes data on an annual basis.
ELIGIBILITY CRITERIA
The criteria for eligibility is as follows:
- Majority owned (51%+) by an individual from historically underserved communities, including women.
- Business operations must be based in Arkansas, though incorporation in the state is not required. A Federal Employer Identification Number is not required, but a business bank account is highly encouraged.
- Business must demonstrate viability, with at least six months of positive revenue history.
- Entrepreneur must demonstrate capacity, ability, and commitment to executing the business model.
- Applicant must be endorsed by a SoCap Fund Verifier or the Southern Capital Project.
QUALIFYING PURPOSE AND USE OF LOANS
Examples of impact sought from investments:
Fund Details:
- Character-based/Alternative lending
- Size of investment: $1,000 – $25,000
- Type of Investment: Debt
- Loan Management: FORGE
- Decided by investment committee, including women entrepreneurs and ecosystem partners
- Geographic Focus: Arkansas
- Flexible Terms up to 10 years
Data & Outcomes (Collected Annually):
- Demography and geography
- Credit score
- Gross revenues
- Net revenues
- Net worth
- Number of employees
