OperationsJul 9, 2026
Pipeline update: 14 approved loans awaiting funding
The approved-loan pipeline stands at $6.2M against $3.48M committed, keeping the fund on pace for full deployment within two quarters of final close.
All opportunities
OpenPrivate Credit Southeastern United States
Main Street Business Credit Fund
Senior-secured small-business lending targeting 10.1% annual yield, paid monthly.
Sponsored by Main Street Capital Strategies 312 members participatingLast updated Jul 9, 2026
Overview
Executive Summary
Main Street Business Credit Fund II originates senior-secured loans of $250K–$1.5M to established small businesses across the Southeast — companies with 5+ years of operating history that banks increasingly underserve. The predecessor fund paid 48 consecutive monthly distributions at a 9.6% average annual yield. Fund II targets 10.1%, paid monthly, over a three-year note term.
Project Description
The fund will hold 25–35 loans at full deployment, diversified across industries and states. Every loan is first-lien on business assets, personally guaranteed by owners, and sized below 60% of collateral value. Average loan term is 30 months with monthly amortization.
Market Opportunity
Regional bank consolidation has left profitable small businesses with fewer credit options, pushing quality borrowers to private lenders at premium rates. The sponsor's pipeline consistently exceeds available capital by 3x, allowing selective underwriting — historically approving under 12% of applications.
Investment Thesis
Short duration, monthly income, first-lien collateral, and a manager with a 24-year, sub-1%-loss underwriting record — designed as the income anchor of a member's portfolio allocation.
Current Status
87% committed. The current pipeline holds 14 approved loans totaling $6.2M awaiting funding as commitments close.
Investment Highlights
Monthly income
Fixed monthly distributions targeting a 10.1% annual yield.
48-for-48 track record
The predecessor fund paid every scheduled monthly distribution across its full term.
First-lien collateral
Every loan is senior-secured against business assets and personally guaranteed.
Sub-1% lifetime losses
Realized loss rate under 1% across 310 originated loans over 24 years.
Short three-year duration
Principal returns as the loan book amortizes — no exit event required.
Selective underwriting
Fewer than 12% of loan applications are historically approved.
Investment Terms
- Offering entity
- Main Street Business Credit Fund II, LLC
- Investment type
- Debt / Note
- Security type
- Fund Notes
- Minimum investment
- $10,000
- Maximum investment
- $400,000
- Target raise
- $4,000,000
- Maximum raise
- $5,000,000
- Price per unit
- $1,000
- Target annual return
- 10.1%
- Target hold period
- 3 years
- Distribution frequency
- Monthly
- Offering deadline
- Sep 15, 2026
- Accreditation
- Open to all approved members
Financials
Sponsor projections — explore how the numbers move under different scenarios.
The sponsor's underwritten projection. All figures are sponsor projections.
Projected Revenue vs. Expenses
Projected Investor Distributions
| Five-Year Forecast | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $485,000 | $514,100 | $544,946 | $577,643 | $612,301 |
| Expenses | $87,300 | $92,538 | $98,090 | $103,976 | $110,214 |
| Operating Income | $397,700 | $421,562 | $446,856 | $473,667 | $502,087 |
| Cash Flow | $342,022 | $362,543 | $384,296 | $407,354 | $431,795 |
| Distributions | $331,761 | $351,667 | $372,767 | $395,132 | $418,841 |
Capital Stack
Total capitalization $4,000,000
Member Equity (The Circle)$4M · 100%
Sponsor Co-Investment$0 · 0%
Est. stabilized value
$4M
Projected exit value
$4M
Sources & Uses
Sources
- Member Fund Notes$4M
- Total$4M
Uses
- Loan Originations$3.8M
- Loss Reserve$120K
- Fund Administration$80K
- Total$4M
Model your investment
Your investment$20,000
$10,000 min20 units @ $1,000$400,000 max
Per monthly payment
$168
Projected annual income
$2,020
Income over 3 yrs
$6,060
Projected value, yr 3
$26,693 · 1.33x
Portfolio fit: Private Credit would move from 21% to 26% of your committed portfolio with this investment.
Illustrative projection compounding the base scenario of the sponsor's target return over the full hold. Estimates only — never a guarantee.
Invest $20,000Business Plan
Business Model
Interest income from a diversified loan book funds fixed monthly distributions to members. Underwriting is based on historical cash flow — not projections — with a lifetime realized loss rate under 1% across 310 originated loans.
Use of Funds
Loan originations (95%), loss reserve funding (3%), and fund administration (2%). No leverage is used at the fund level.
Potential Exit Strategy
Notes mature 36 months from issuance, with principal returned as the underlying loan book amortizes and matures. Members may elect to roll into successor funds at maturity.
Sponsor
Main Street Capital Strategies originates senior-secured loans to established small businesses across the Southeast, targeting monthly income for members. Every loan is first-lien, personally guaranteed, and underwritten against historical — not projected — cash flow.
24
Years experience
310
Completed projects
74
Current projects
$129M
Total project value
Team
- RE
Robert Ellison · Chief Investment Officer
Former commercial-bank credit chief; $1B+ in originated small-business credit.
- DW
Dana Whitcomb · Head of Underwriting
Leads a five-person credit team; lifetime realized loss rate under 1%.
Previous projects
Credit Fund Predecessor (2019–2023)
48 consecutive monthly distributions; 9.6% average annual yield
Track record provided by the sponsor. Past performance does not predict future results.
Documents
The complete document room for this offering.
Project Timeline
Apr 1, 2026
Opportunity Announced
Opportunity introduced to The Circle with preliminary materials.
Apr 15, 2026
Member Preview Opened
Full data room, financial model, and sponsor Q&A opened to members.
May 1, 2026
Offering Opened
Commitments accepted from approved members.
Sep 15, 2026
Target Funding DateCurrent
Offering expected to reach its target raise.
Oct 1, 2026
Loan Book Deployment
Capital deployed and the project moves into execution.
Mar 31, 2027
Fully Deployed (25–35 Loans)
Key operating milestone on the path to stabilized performance.
Nov 1, 2026
Projected First Distribution
First member distribution expected, subject to performance.
2029 (note maturity)
Projected Exit Window
Targeted period for sale, refinance, or other liquidity event.
Updates
Risks
Private investments involve substantial risk, including illiquidity and possible loss of the entire amount invested. Read every factor below before committing. Projected returns are estimates only and are not guaranteed.
Credit & Default Risk
Borrowers may default. Although loans are collateralized and guaranteed, recovery may be partial or delayed, reducing yield or principal.
Concentration Timing Risk
Early in deployment, the book holds fewer loans, temporarily concentrating exposure until the fund reaches 25–35 positions.
Market Risk
Economic conditions, interest rates, and local market dynamics may change and could reduce revenue, valuations, or the pace of lease-up and sales relative to projections.
Liquidity Risk
This is a private investment with no public market. Members should expect to hold their investment for the full target hold period; early liquidity is not guaranteed and may not be available at all.
Loss of Capital
Private investments involve substantial risk, including the possible loss of the entire amount invested. Members should only commit capital they can afford to lose.
Projection Risk
All financial projections shown are illustrative demonstration estimates prepared by the sponsor. Actual results will differ, and the difference may be material.
Sponsor & Execution Risk
Performance depends heavily on the sponsor's ability to execute the business plan, retain key personnel, and manage costs. Departure of key team members could adversely affect results.
Regulatory Risk
Changes in zoning, licensing, tax, or securities regulation could affect the project's operations, timeline, or member distributions.
Economic Risk
Recession, inflation, labor shortages, or credit-market disruption could increase costs or reduce demand beyond what the sponsor has underwritten.
Questions
Frequently asked
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Sponsor presentations and group Q&As are listed on the member events calendar.
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