Small and Growing Business (SGB) Portfolio
June 2023
$7.5M
Capital Outstanding
11
Active Clients
56
Active Loans
10
Countries Reached
SGBs often lack access to sufficient, appropriately structured growth capital, despite their importance in driving job creation and entrepreneurial activity in emerging markets. When SGBs in the informal economy are considered, the total credit gap is estimated between $2.1 - $2.6 trillion.
MCE’s Small and Growing Business (SGB) Portfolio addresses this market gap by serving SGBs in the “missing middle”—those that are too big for microfinance, yet too small for commercial lending. With a focus on investing in women and the environment, our SGB portfolio provides catalytic and flexible debt capital to SGBs in the agriculture, water and sanitation, and clean energy sectors. Our portfolio companies create economic opportunities in rural economies, raise small-holder farmers’ incomes, and facilitate access to basic needs in underserved areas.
MCE is committed to ongoing partnership with these enterprises as they grow and scale to better serve their customers, their employees, and their communities, generating sustainable and inclusive economic growth that supports a thriving environment.
As of June 30 2023, our SGB portfolio consisted of $7.5 million outstanding in 11 SGBs operating across 10 countries.
Why Small and Growing Businesses? »
SGBs often lack access to sufficient, appropriately structured growth capital. When informal SGBs are taken into account, the total credit gap is estimated between $2.1 - $2.6 trillion. This gap is even more pronounced for women-owned SGBs, 70% of which are unserved or underserved, which represents an additional $285 billion credit gap according to the World Bank Group.
The purpose of our SGB portfolio is to address some of the critical market gaps that exist by providing catalytic loans to support SGBs in the “missing middle” (that are too big for microfinance, yet too small for commercial lending)—businesses that otherwise lack access to financing on affordable and appropriate terms.
The SGBs in our portfolio are often the only sources of formal employment in the areas in which they operate. By financing and supporting their growth, we are able to create economic opportunities and impact the lives of people living in particularly marginalized communities through the agriculture value chain, renewable energy, and water and sanitation sectors.
SGB Investment Spotlights
For a full list of the SGBs in our portfolio, please visit our Portfolio List page.
Good Nature Agro (GNA) invests in Zambian small-scale farmers to generate lasting income by providing technical assistance, inputs and access to a readymade market. The result has been a two-fold increase in productivity for thousands of farmers.
Natural Extracts Industries (NEI) is a for-profit social enterprise based in Moshi, Tanzania that works to accelerate the economic growth of smallholder farmers by adding value to their crops through sustainable agricultural practices and providing access to global markets.
Sol Organica is a certified B-Corporation in Nicaragua that works to improve the livelihoods of tropical fruit farmers in Nicaragua while maximizing their agricultural potential and promoting the use of sustainable and organic farming practices.
SGB Portfolio Growth
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SGB Portfolio Diversification
Geographic Diversification
Sector Diversification
*Sector diversification data as of Q4 2022, updated on an annual basis.
SGB Investment Criteria
Company Financial Profile
> 2 years of operations
Sustainable and scalable sources of revenue >$1M/year and positive EBITDA (within 12 months of investment)
Positive equity with reasonable debt-to-equity and debt service coverage ratios
Audited financial statements for at least one year and quarterly financial statements
Key Impact Criteria
MCE prioritizes investments in companies that meet one or more of the following impact criteria:
Gender: Focus on companies founded and/or led by women and those who design products and services that reach and empower female end stakeholders
Climate Resilience and Environmental Sustainability: Clear focus on supporting sustainable, climate-smart agriculture, through regenerative farming practices, farmer adaptation to climate change, or other approaches
Livelihoods: Focus on job creation and improved livelihoods
SGB Deal Structure
DEal Structure
Size: US$100K - $2M
Currency: USD, EUR, or local currency
Pricing: 8 - 11% in USD
Term: 10 months - 3 years
Capital: Senior debt
SGB Impact
Portfolio List
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