Investing in Businesses that Invest in People
Social Capital Partners facilitates access to attractive subordinate debt financing for entrepreneurs looking to buy or grow a franchise business. In return, franchisees commit to hire a portion of their entry-level staff from community service agencies that refer job candidates. Social Capital Partners acts as a broker connecting our franchise clients to local agencies in their area – working with franchisees to better understand their HR needs and with the community agencies to make sure their candidates are properly screened to meet these needs.
We link the financial and social components of our investments through a socially-adjusted interest rate that directly ties financial incentives to employment outcomes – for every candidate the franchisee hires from a community agency, the interest rate on their loan declines.
Our clients receive access to subordinated debt at attractive rates along with financial savings associated to a declining interest rate, recruitment cost savings and potential wage subsidies provided by our agency partners. At the same time, franchisees receive assistance from Social Capital Partners and community agencies in hiring high quality staff members -- because when given the opportunity, they want to make the most of it.
