# Capital Financing Toolkit — Brady's Ecosystem (2026-05-05)

**Purpose:** Inventory of practical capital instruments for Witch Haven Grove LLC, ranked by **ease/flow** and **7-year ecosystem fit**. Filed S83-H197.

**Honest caveats:**
- This is a research framework, not legal or financial advice.
- All limits, rates, and program details verified May 2026 — refresh in 6 months.
- Personal credit pull required for most paths; Brady-only.
- Consult CPA + business attorney before any acquisition or 5-figure+ application.

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## How to read this doc

Each instrument is rated on two axes:

- **EASE/FLOW (1-5):** Speed to capital + paperwork burden. 5 = "apply this week, money in days." 1 = "60-120 days of process."
- **7-YEAR FIT (1-5):** How well the capital served compounds Brady's 7-brand ecosystem (RoseCourt / Grove House / Witch Haven Grove / Mirror Mirror / LongHouse / Small Stage / Brady Hugins). 5 = "directly funds a brand asset that pays back 7+ years." 1 = "one-time bridge, no compounding."

**Rule of thumb:** start with high-EASE for working capital, escalate to high-FIT when buying durable assets (property, businesses, equipment).

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## Tier 1 — Fast cash, low paperwork (start here)

### 1. Capital One Spark Cash Plus

- **Type:** Business credit card with personal guarantee
- **Limit:** $5K-$50K typical; trade limit grows with use
- **Rewards:** 2% cash back on everything; sign-up bonus $1,200 ($30K spend in 6mo) or 30K points ($3.5K spend in 30 days)
- **Annual fee:** $150 (waived in some offers); $0-fee Spark Cash Select also available
- **Qualification:** Personal credit primarily — FICO 670+ recommended. WHG LLC standing checked but lighter than SBA.
- **Timeline:** Application → decision in days; card in 7-10 days
- **EASE: 5/5** | **7-YEAR FIT: 3/5** (working capital, not asset)
- **First call:** apply at capital.one/business; have EIN + revenue estimate ready
- **Best use:** Solshine Phase 2 production runs ($3-8K), event marketing burst, ingest equipment, bridge cash for upcoming 1099 deposit

### 2. Personal 0% intro APR cards (strategic bridge only)

- **Type:** Personal credit card with 0% intro APR for 12-21 months
- **Limit:** $5K-$25K typical
- **Examples:** Chase Freedom Unlimited, Wells Fargo Active Cash, Citi Diamond Preferred (15-21 mo 0%)
- **Risk profile:** Personal liability; convert to high APR after intro window
- **EASE: 5/5** | **7-YEAR FIT: 1/5** (bridge only, no compounding, personal exposure)
- **Best use:** ONLY for known-payback expenses (e.g., $2K equipment that books $5K of contract work in 60 days). Never for acquisitions, never long-term.
- **Brady caveat:** mentioned for awareness — separating personal/business credit is the long game, so use sparingly.

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## Tier 2 — CDFI relationship paths (Brady's strongest realistic path)

### 3. Prestamos CDFI (Phoenix) — Micro Enterprise Loan

- **Type:** CDFI mission-aligned business loan
- **Limit:** $2,500 - $50,000
- **Rate:** Typically 8-12% (CDFI rates vary)
- **Term:** 1-7 years
- **Qualification:** Lower bar than SBA — CDFIs exist to fund businesses banks won't. Brady's WHG LLC + AZ-based + business plan is enough to start a conversation. Often funds owner-operators with thin credit history if business plan is solid.
- **Timeline:** 30-90 days from first call to funded
- **EASE: 4/5** | **7-YEAR FIT: 4/5** (mission-aligned + relationship establishes Brady in AZ small business community for future rounds)
- **Address:** 1024 E Buckeye Rd Suite 270, Phoenix AZ 85034 | **Phone:** 602-258-9911
- **First call:** 15-min intro call to learn current product mix; ask about Latino/AAPI/woman-owned set-asides if relevant
- **Best use:** Solshine Phase 2 jar production line ($5-15K), Scout Report equipment + truck upfit ($10-25K), down payment on small acquisition

### 4. Prestamos CDFI — Small Business Loan

- **Type:** Same lender, larger product
- **Limit:** $50,000 - $500,000
- **Qualification:** Tighter than micro — typically requires 1-2 years operating history + collateral or PG
- **EASE: 3/5** | **7-YEAR FIT: 5/5** (this is the right size for AZ-based acquisition or property down payment)
- **Best use:** Acquisition equity injection, real estate down payment for venue/kitchen, equipment package for GH

### 5. Arizona Microbusiness Loan Program (State-funded)

- **Type:** State-backed loans deployed via CDFI partners (Prestamos + others)
- **Limit:** $2,000 - $50,000
- **Pool:** $5M total state allocation (per AZ Office of Economic Opportunity)
- **Qualification:** AZ-based microbusiness, owner-operator
- **EASE: 3/5** | **7-YEAR FIT: 4/5**
- **First call:** AZ Office of Economic Opportunity (oeo.az.gov/microbiz) → they route to participating CDFI
- **Best use:** Same as #3 but with state-subsidized terms (potentially lower rate)

### 6. AZ CDFI Network (6 lenders)

- **Type:** Network of mission-aligned lenders across Arizona
- Beyond Prestamos: Native Community Capital, LISC Phoenix, Self-Help Federal Credit Union, others — sizes and missions differ
- **EASE: 3-4/5** | **7-YEAR FIT: 4-5/5**
- **First call:** azcdfi.org → see directory; pick 1-2 with mission alignment to Brady's ecosystem (rural land, herbal/agrarian, BIPOC, etc.)
- **Best use:** Round 2 capital after Prestamos relationship established; specialized missions (e.g., Native Community Capital for tribal-adjacent ventures)

---

## Tier 3 — SBA programs (slower but bigger checks)

### 7. SBA Microloan (via CDFI)

- **Type:** SBA-guaranteed loan delivered through nonprofit CDFI intermediaries (Prestamos is one)
- **Limit:** $50,000 max
- **Rate:** 8-13% typical (CDFI sets the rate within SBA caps)
- **Term:** Up to 6 years (no real estate)
- **Qualification:** Easier than 7(a) — SBA Microloan is designed for early-stage and underbanked
- **Timeline:** 25-90 days
- **EASE: 3/5** | **7-YEAR FIT: 4/5**
- **First call:** Same as Prestamos — they administer SBA Microloans
- **Best use:** Equipment + working capital combo, especially if rate is better than CDFI's own product

### 8. SBA 7(a) Small ($50K - $350K)

- **Type:** Standard SBA-guaranteed term loan, lower-tier
- **Rate:** Prime + 3-4.75% (typically 11-13.5% in May 2026)
- **Term:** 7-10 years (working capital), 25 years (real estate)
- **Qualification:** 2 years business history preferred; personal credit 680+; SBA Form 1919 + 413 + 3 years business + personal tax returns
- **Timeline:** 60-90 days
- **EASE: 2/5** | **7-YEAR FIT: 5/5** (right size for AZ acquisition or property)
- **First call:** SBA preferred lenders list at sba.gov/funding-programs/loans/lender-match → Arizona-active lenders include Bank of America, Chase, Wells Fargo, Live Oak Bank (national SBA specialist)
- **Best use:** Small business acquisition $150-500K range, single property purchase

### 9. SBA 7(a) Standard ($350K - $5M)

- **Type:** Full SBA 7(a)
- **EASE: 1/5** | **7-YEAR FIT: 5/5**
- **Best use:** Mid-size acquisition ($500K-$2M SDE business) — full-document underwriting required
- **Note:** 90% of small business acquisitions under $5M use this path. Standard for buying a service business with cash flow.

### 10. SBA 7(a) Express ($500K max)

- **Type:** Fast-track 7(a)
- **Rate:** Slightly higher than standard 7(a) (Prime + up to 6.5%)
- **Timeline:** ~36 hours SBA approval (vs. weeks); total 30-45 days end-to-end
- **EASE: 3/5** | **7-YEAR FIT: 4/5**
- **Best use:** Working capital line of credit, smaller acquisitions where speed > rate

### 11. SBA 504 (real estate / heavy equipment)

- **Type:** Two-loan structure (50% bank + 40% SBA via CDC + 10% buyer)
- **Limit:** Up to $5M (or $5.5M for green/manufacturing)
- **Rate:** Below-market on SBA portion (fixed, ~5.5-6.5% range)
- **Use restriction:** Only for owner-occupied commercial real estate or heavy equipment
- **EASE: 1/5** | **7-YEAR FIT: 5/5** (if buying property)
- **Best use:** Buying a commercial building for RoseCourt events / WHG production / mixed-use Brady-ecosystem hub. **The right path if Brady is buying real estate.**

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## Tier 4 — Acquisition-specific financing structures

### 12. Seller financing (NOT a separate instrument — a deal structure)

- **Type:** Owner of the business carries part of the purchase price as a note
- **Typical share:** 20-50% of purchase price
- **Term:** 5-10 years at 6-9% interest
- **CRITICAL 2026 update:** If seller carries **5% on full standby** (no payments until SBA loan paid off), SBA counts that 5% as equity injection — **reducing buyer cash from 10% to 5%** of purchase price.
- **EASE: variable** (depends on finding a willing seller; 70-80% of small biz sales involve some seller financing per IBBA)
- **7-YEAR FIT: 5/5** (the standard tool for low-cash acquisition)

### 13. Earnouts

- **Type:** Pay seller a % of acquired company's future revenue or profit over 1-3 years
- **Use:** Bridge valuation gaps; acquire with less upfront cash
- **EASE: 4/5** (negotiation, not paperwork)
- **7-YEAR FIT: 4/5**

### 14. Equity rollover

- **Type:** Seller stays as minority partner; converts part of sale price to ownership in newco
- **Use:** Reduces buyer cash; retains seller's expertise during transition
- **Best fit:** If seller is the operator and you want their hands on the wheel for 1-3 years

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## Tier 5 — Lower-priority paths (mention only)

### 15. Grants

- **Reality:** SBA does NOT do general business grants. Federal grants are R&D-specific (SBIR/STTR) or industry-specific.
- **Practical AZ + national options:** Hello Alice (rolling, $5K-$25K), Visa Small Business (rolling, $10K), Comcast RISE (rolling, $10K), AZ Commerce Authority programs (variable), USDA Rural Development (if Cottonwood / rural AZ siting matters for WHG).
- **EASE: 2/5** (heavy paperwork, low hit rate)
- **7-YEAR FIT: 3/5**
- **Best use:** Apply opportunistically — 2-3 hours each, free money if won. Don't build the plan around grants.

### 16. Revenue-based financing (Pipe / Capchase / Clearco)

- **Type:** Capital advance against future recurring revenue
- **Reality for Brady:** Requires $10K+ MRR to underwrite. Brady's MM Membership is at $0 MRR currently. **Not a fit until MM Membership crosses $5-10K MRR.**
- **EASE: 4/5** | **7-YEAR FIT: 2/5**
- **Defer until:** post-Round 5 when MM Membership has 30+ paying members

### 17. Invoice factoring

- **Type:** Sell accounts receivable to a factor at discount
- **Reality for Brady:** Only useful if running Net-30/60/90 B2B invoicing at meaningful volume
- **EASE: 4/5** | **7-YEAR FIT: 1/5**
- **Defer until:** Brady has steady $5K+/mo invoice flow

### 18. Brex / Ramp corporate cards (NOT a fit currently)

- **Brex:** Requires $50K cash reserves; doesn't accept sole props
- **Ramp:** Requires $75K in U.S. business bank account
- **Reality for Brady:** WHG LLC may not currently meet reserve thresholds. **Revisit after first CDFI/SBA loan funds and reserves are deployed.**
- **EASE: 4/5 (if qualified)** | **7-YEAR FIT: 3/5**
- **Note:** Capital One acquired Brex Jan 22, 2026 ($5.15B deal). Policies may shift in 2026-2027.

### 19. HELOC / personal real estate leverage

- **Type:** Home Equity Line of Credit on personal residence
- **EASE: 3/5** | **7-YEAR FIT: 1/5** (mixes personal + business risk)
- **Mention only:** Brady-private decision; only consider if no other path works AND project cash flow is rock-solid AND CPA approves.

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## Brady's recommended capital order (next 90 days)

Given his current state (low revenue, established LLC, AZ-based, ecosystem-focused, prefers ease/flow):

1. **Week 1:** Apply Capital One Spark Cash Plus → $5-25K immediately available for working capital
2. **Week 2:** 15-min intro call with Prestamos CDFI → understand product fit, build relationship
3. **Week 3-4:** Build "lender packet" (entity docs + 2 yr returns + bank statements + business plan one-pager)
4. **Month 2:** Apply Prestamos Micro Enterprise Loan ($10-25K) for Solshine Phase 2 OR Scout Report equipment
5. **Month 2-3:** Pre-qualification conversations with 2 SBA lenders (Live Oak Bank — national SBA specialist; one AZ regional like National Bank of AZ or Western Alliance)
6. **Month 3 (if acquisition target identified):** Submit SBA 7(a) Small or Standard application

**Stop-go criteria:** If by Day 90 no capital source has approved, pivot to "build current ecosystem to MM Membership $5K MRR before next capital round."

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## Sources (verified May 2026)

- [SBA 7(a) loans](https://www.sba.gov/funding-programs/loans/7a-loans)
- [SBA Microloans](https://www.sba.gov/funding-programs/loans/microloans)
- [Prestamos CDFI Phoenix](https://prestamoscdfi.org/phoenix/)
- [AZ Microbusiness Loan Program (OEO)](https://oeo.az.gov/microbiz)
- [AZ CDFI Network](https://azcdfi.org/azcdfi-lending/)
- [Capital One Spark Business](https://www.capitalone.com/small-business/credit-cards/)
- [Brex Business Credit Card requirements](https://ramp.com/blog/brex-business-credit-card-requirements)
- [Ramp corporate card guide](https://www.creditcards.com/card-advice/ramp-card-guide/)
- [SBA 7(a) acquisition financing 2026 changes](https://www.crestmontcapital.com/blog/sba-loan-to-buy-a-business)

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_Filed S83-H197 (2026-05-05 by CC). Refresh recommended Q4 2026 for updated SBA limits + CDFI offerings._