sm capital, inc

Investor Presentation

www.thesmallbusinessfund.com

www.smequityfunds.com

www.smcapitalfunds.com

Iowa | Boston | Chicago Alternative Investment and Capital Specialists

http://www.thesmallbusinessfund.com/

http://www.thesmallbusinessfund.com/

http://www.smequityfunds.com/

http://www.smcapitalfunds.com/

http://www.smcapitalfunds.com/

The Problem for Small Business

Banks are not loaning $Investment Capital is Tight

Under $1M market is underserved


The Problem for Small Business


The Problem for Investors

CD Rates 06.07.12 *Bankrate.com

1 Year average: .71%5 Year Jumbo: 1.13%

Treasury’s 06.07.12 *WSJ1-Year Note .178%5-Year Note .716%

30-Year Bond 2.737%


Solution!


Small Business Fund of America, LLC

SM Equity Funds, LLC

A Secured Debt Fund providing working capital solutions for successful companies.

A Fixed Income Investment alternative with a history of paying over 9% net of fees since fund inception.

A Private Equity Solution for entrepreneurs seeking growth capital and value added expertise.

A Capital Appreciation Opportunity for investors seeking a unique alternative.

Two Distinct Funds


Small Business Fund of America Borrowers?

Established company with history of consistent revenues

Sales between $1-$20 million

Profitable or near profitable EBITDA

Broad range of industry No startup or development

stage companies Verifiable financial

statements Strong management team


How We Do It!

Extensive Referral Network

Disciplined due diligence

Ability to structure

Underwriting process

Portfolio Monitoring

Loan Term ProtectionsIowa | Boston | Chicago

Alternative Investment and Capital Specialists

SBF of America Investment Opportunity

A conservative investment with a preferred 10% annualized rate of return paid quarterly

Over two year fund history Invested for at least all of year 1 and can be distributed ¼

every quarter in year two to allow for complete withdrawal by the end of the

second year $25,000 minimum investment Can be funded via IRA


Other Opportunities - SM Equity Fund

A Private Equity fund seeking to invest in that great next business that

“you have not yet heard of”


SM Equity Fund - Portfolio


http://www.dibzees.com/

Fund Comparison Fund Comparison

SBF of America, LLC. SM Equity Fund, LLC Combination

Minimum Investment Required

$25,000 $25,000 $50,000

Type of Business invested in

Successful established small businesses ranging from $1Million - $20Million in

revenue

Primarily early stage but can include startup

See Fund Descriptions

Return on Investment

10% Preferred Annual Return Accrual of 10% Preferred Annual Return


Fee StructureOption of fund manager with a

maximum of 2% per year

No Management Fee$500 for Legal/Accounting

per $25,000 invested None

Additional ReturnPotentially from warrant

coverage

After the return of the initial investment and preferred

return, additional profits are split 80%/20%


PaymentMonthly or Quarterly

(investors choice)

Upon distributions from companies from within the

portfolioSee Fund Descriptions

Risk

Historically relatively a conservative investment, but

there is still risk with this investment

High risk - Investors could lose everything

Blended

Funds Insured / guaranteed

NO NO NO


The “Secret Sauce?”

Ability to originate loans through extensive referral network for companies that have limited financing sources

Ability to properly structure higher yielding investment assets to mitigate risk of payment defaults and maximize return

&


http://www.bizstrategygroup.com/

Business Strategy Group

Vision & Mission

• A one-stop shop for emerging entrepreneurial companies, our Client Partners

• Our partners and members deliver a tailored blend of advisory, implementation, and capital sourcing in order to help Client Partners focus on their strengths and breakthrough to the next level

Advice, CEO coaching, strategic planning, technology management,

crisis management

Equity & debt financing programs

Interim and long-term management

services, implementation &

outsourcing


Referral Opportunity


• Need for small business funding in the market place

• Incentive for anyone who refers not only an investor, but also a qualified borrower to the fund.

• We will pay 10% of all the net proceeds derived from the investor or borrower.

• This referral fee is perpetual, and paid on a quarterly basis as long as the investor or the borrower remains in the fund.

We view this as a win-win for everyone, as it allows investors to benefit from referrals but also continues to build the fund which

provides even more diversification for investors.

Fund Manager: Brian L. Mitchell

Private Equity and Venture Capital

12 years in financial services industry

Former Financial Planner

Former commercial bank manager specializing in residential and commercial lending

Former Professional Baseball Player

BBA Finance ‘99, University of Iowa


Fund Manager: Thomas R. Shane

Chairman and CEO of Business Strategy Group, LLC

Experienced fund manager with over 25 years in successfully originating, analyzing, underwriting and managing secured debt financing opportunities

through an extensive referral network.

Visionary Investments Limited Partnerships1990 – Present

Originated over $50 million in 350 small business loans

Co-founder, Vice Chairman, and General Counsel for Leading Edge Products, Inc

Founded Shane & Paolillo, P.C.,

Industry groups including manufacturing, distribution, marketing and service sectors

Babson College MBA 1981*Suffolk University Law School JD 1980Boston College BS 1977


Iowa City Chicago

332 S. Linn StreetSuite 18

Iowa City, IA 52240319-339-0220

Brian Mitchell

[email protected]

Jen [email protected]

75 Second Avenue Suite 200

Needham, MA 02494781-433-0400

Tom Shane

[email protected]

Michelle [email protected]

Office Locations

Boston

10 S. Riverside Plaza

Suite 1800Chicago, Il 60606

312-474-7766

Brian L. [email protected]

Tom [email protected]


mailto:[email protected]









Thank You!!!


Disclaimer

This presentation shall not constitute an offer to sell or a solicitation of an offer to buy any securities, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

Past performance is no indication of future performance


sm capital, inc

Documents

investment capital

capital specialists

investment alternative

conservative investment

year fund history

capital appreciationwith

growth capital

fund inception