Growth Capital Corporation

What it reported doing in 2025

During fiscal year 2025, the organization exceeded its annual loan production goal for the first time in three fiscal years. A total of 43 loans were approved, consisting of 22 sba 504 loans and 21 sba 7(a) loans, representing 103% of the annual production goal and reflecting a balanced mix of lending activity across programs. Loan production increased significantly compared to the prior year, with approved loan volume increasing by more than 42% based on the number of loans approved. The organization approved approximately 22.7 million in financing during the fiscal year, including 19.4 million through the sba 504 program and 3.3 million through the sba 7(a) program. While total approved loan dollars reached approximately 82% of the annual dollar- volume goal, average loan size declined due to a greater number of smaller loans. Management believes these loans continue to support the organization's mission of providing growth capital to small businesses and underserved borrowers. During fiscal year 2025, 32 loans closed, including 18 sba 504 loans totaling approximately 14.7 million and 14 sba 7(a) loans totaling approximately 2.7 million. Loan closings exceeded the annual production goal and contributed positively to operating results. The organization's loan portfolio grew by approximately 10.9 million during the fiscal year. Portfolio growth benefited from the funding of several larger sba 504 loans and a slower pace of loan payoffs compared to prior periods. Portfolio growth exceeded established annual targets and represented the strongest year-end growth achieved in recent years. The lending environment continued to be affected by prevailing interest rates. However, stabilization of the 10-year treasury rate supported sba 504 lending activity, while reductions in interest rates during the year are expected to provide payment relief to certain borrowers and support future portfolio performance. The organization also experienced improvements in portfolio quality during fiscal year 2025. The sba 504 stressed loan rate declined from 20.49% at the beginning of the fiscal year to 6.32% at year-end, primarily due to proactive workout efforts and sba-approved repayment arrangements. The sba 7(a) stressed loan rate decreased from 6.80% to 2.53% during the same period. In addition, the organization maintained a strong loan loss reserve position, which management believes provides meaningful protection against credit risk. The organization's mission-related lending results remained strong during fiscal year 2025. Loans made to sba-designated underserved markets represented more than 89% of total lending activity, exceeding applicable sba benchmarks. Lending to low-to-moderate-income borrowers and communities represented more than 82% of community advantage lending activity. Women-owned businesses accounted for approximately 28% of total lending, minority-owned businesses represented approximately 14%, veteran- owned businesses represented approximately 21%, rural businesses represented approximately 14%, and manufacturing companies represented approximately 17% of loans originated during the year. The organization estimates that businesses receiving financing through its programs created approximately 197 new jobs during fiscal year 2025, further advancing its mission of supporting economic development and small business growth within the communities it serves. S

Financial Efficiency

• Mission deployment rate: 76.4%; rating input score 76
• Program expense ratio: 85.8%; rating input score 86
• Fundraising efficiency: Limited

Transparency & Controls

• Consistency checks: 100%; rating input score 100; 63rd percentile among comparable filings
• Pay-setting controls: 3 of 6 controls in place; rating input score 50
  • Compensation committee: Missing
  • Independent consultant: Missing
  • Other Form 990s reviewed: Pass
  • Written employment contract: Missing
  • Compensation survey or study: Pass
  • Board or committee approval: Pass
• Foreign activity oversight: Limited
• Grant itemization coverage: Limited
• Major donor itemization: Limited
• Related-party transparency: Limited

Accountability

• Independent voting board: 100%; rating input score 100; 63rd percentile among comparable filings
• Governance controls: 8 of 8 controls in place; rating input score 100
  • Conflict-of-interest policy: Pass
  • Whistleblower policy: Pass
  • Document-retention policy: Pass
  • CEO compensation review process: Pass
  • Other executive compensation review process: NotApplicable
  • Form 990 shared with the board: Pass
  • Board meeting minutes documented: Pass
  • Audit committee oversight: Pass
  • Independent financial-statement audit: Pass

Sustainability

• Operating margin: 8.2%; rating input score 51; 51st percentile among comparable filings
• Total-asset coverage ratio: 1.97; rating input score 57; 57th percentile among comparable filings
• Liabilities to assets ratio: 0.25; rating input score 31; 31st percentile among comparable filings
• Officer compensation ratio: 35.6%; rating input score 5; 5th percentile among comparable filings

Growth

• Program expense growth: 2.4% per year; rating input score 100; 21st percentile among comparable filings
• Revenue growth: 5% per year; rating input score 100; 37th percentile among comparable filings
• Asset growth: 7.2% per year; rating input score 100; 45th percentile among comparable filings