The Fund provides U.S. Federal Government contractors with access to timely, affordable, and flexible financing. Founded in 2013 by industry executives who were aware that commercial banks had walked away from their middle and smaller market client base after the banking crisis of 2008-2010 – and left many Federal services contractors with few financing options, the Fund created a source of senior secured capital for the Federal contracting industry. Government agencies have mandates to work with small businesses. The market opportunity is large, since by law 23% of federal contracts must be awarded to “Small Businesses” as defined by the Small Business Administration. Over 47,000 U.S. Federal contractors are considered a “Small Business” and approximately 10% are based in the Washington D.C. area. The market size for outsourced Federal services contracts is in excess of $300 Billion per year, with work being performed by U.S. companies domestically. Companies grow their revenues by competing to win contracts, increasing the number of contracts they are working on across multiple Federal agencies, based on technical qualifications and past performance. Contracts are generally 3-5 years and can significantly increase a small company’s revenues. Few small Federal contractors have the ability to fund their growth in payroll-related working capital. This working capital growth requirement is the basis for the Fund’s lending. The Fund lends against both billed and unbilled accounts receivable, loans are secured through first lien positions, full cash dominion over all contracts (not just the one against which the Fund is lending), and personal guaranties from all of the borrowing clients’ majority owners. Commitments average $1.4M and range from $50K to over $5M per loan. Management believes the government contracting industry is an underserved market and believes the Fund offers a better solution than traditional banks, which are often unwilling to accommodate borrower growth needs; and factoring companies, which offer an inflexible and expensive financing option. Fund management has over 50 years of leadership experience in the Federal contracting industry, including both as founders of Federal services companies, veterans and holding high level security clearances, allowing for collaborative work with Defense Department and classified companies. This position has allowed the Fund to grow significantly in this underserved and inefficient capital market, resulting in the Fund becoming one of the leading providers of working capital to the Federal contracting industry. As part of its ongoing review of loans, the Fund performs a quarterly analysis of client financials, bi-weekly reviews of borrower compliance and daily monitoring of borrowers’ activity. The majority of the Fund’s client loans are asset based revolving lines of credit with 6-12-month terms. The Fund offers investors the opportunity to invest in a three-year 9% promissory note, with cash interest paid quarterly. Investors have quarterly liquidity with 90 days’ notice after a one-year lock-up. Interest may be withdrawn or re-invested. The Fund’s founders/principals have over $2.6M invested in the Investor Notes. The University of Minnesota Foundation is an investor in the strategy in a separate account.