CapSources provides investment in an amount range of $250,000 to $1.5 million to growth stage companies.  Investments are made in the form of subordinated debt with warrants for common stock.  The typical investment term is for five years at interest rates above commercial lending rates.  Application and closing fees are also applicable.  The debt may be made with "interest-only" monthly payments or with some periodic amortization of principal with a balloon at maturity.

The basic investment criteria for the CapSource Fund, LP and the CapSource 2000 Fund, LP are as follows:

• Company will have annual revenues in excess of $1 million.
• Company will be more than 2 years old.
• Company will be growing at 20% or more per year
• Company will be profitable at the operating level and have sufficient cash flow to cover all outstanding debt services and the proposed investment by the Fund.
• Company will have a strong and experienced management team that has demonstrated an ability to manage through various business cycles.
• Management team of the Company will be substantial owners of the Company.
• Management will have a defined exit plan for the Company.

Investments by the Funds will be principally targeted to companies located in the Southeast, Southwest and Western U.S.  The Funds will also look at co-investment opportunities with other investment funds for transactions located throughout the U.S.