# ROI Project → Financing Instrument Matrix (2026-05-05)

**Purpose:** One-page decision tool. Map any capital need to the right instrument in 30 seconds. Sorted by capital amount.

**How to use:** When a project surfaces, find the row matching capital need + ecosystem brand. The "Best Instrument" column is the path of least resistance + best 7-year fit. "Backup" is fallback if primary doesn't qualify or is too slow.

**Caveat:** This is a framework, not a guarantee of approval. Actual qualifications vary by personal credit, business standing, and timing. Always pair with CPA + attorney review before 5-figure+ commitments.

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## Working capital tier ($1K - $5K)

| Project | Brand | Capital | Best Instrument | Why | Backup |
|---|---|---|---|---|---|
| Marketing burst (1 webinar / event push) | MM / RC | $500-$2K | Cash flow | ROI in 30 days; too small to leverage | Capital One Spark on 30-day float |
| Software / SaaS subscriptions (annual) | All brands | $500-$3K | Capital One Spark | 2% cash back compounds + sign-up bonus | Personal 0% APR card if no Spark yet |
| Event venue deposits (Fuega, ShareCraft) | RC / SS | $500-$2K | Cash flow | Recovered from RSVPs within event cycle | Capital One Spark |
| Equipment under $2K (mics, ingest gear) | SS / RC | $1-2K | Capital One Spark | Asset paid back through 2-3 events | Cash flow |

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## Operating tier ($5K - $25K)

| Project | Brand | Capital | Best Instrument | Why | Backup |
|---|---|---|---|---|---|
| **Solshine Phase 2 jar production** | WHG | $5-15K | **Prestamos CDFI Micro** | First CDFI relationship; mission-aligned (food/agrarian); SBA-Microloan if rate beats | Capital One Spark for shorter pieces |
| **Scout Report equipment package** (drone, soil testing, truck upfit) | GH | $10-25K | **Prestamos CDFI Micro or AZ Microbusiness Loan** | Asset-secured; revenue-tied to Brady's hands-on work | SBA Microloan (slower, similar rate) |
| **Mesa Kitchen lease + first 3 mo deposit** | WHG | $10-20K | Prestamos Micro or Spark | One-time setup; recoups in 5-event Solshine cycle | SBA Microloan if Brady needs longer term |
| **Studio / Small Stage gear bundle** | SS | $5-15K | Capital One Spark + Cash flow | Spark for fast turn; book contracts to repay | Prestamos if larger |
| **Web infrastructure round** (server hardware, MM hosting capacity) | MM | $5-10K | Capital One Spark | Compounds into MM Managed Hosting customer base | Cash flow |
| **Brady ecosystem photo/video shoot** (real assets) | All brands | $5-10K | Capital One Spark | One-time asset; reusable across all 7 brands × 7 years | Cash flow |

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## Strategic tier ($25K - $100K)

| Project | Brand | Capital | Best Instrument | Why | Backup |
|---|---|---|---|---|---|
| **Mesa Kitchen full year + Solshine bottling line** | WHG | $30-60K | **Prestamos Small Business Loan** ($50-500K product) | 7-year fit (durable production capability); CDFI relationship deepens | SBA Microloan (capped at $50K) |
| **Scout Report fleet expansion** (truck #2, drone fleet, surveying tools) | GH | $30-75K | **SBA Microloan via Prestamos** + **Spark for working capital** | Stacked: SBA for assets, card for cash | Prestamos Small Business Loan |
| **MM Studio buildout** (course production room, livestream rig) | MM | $25-50K | SBA Microloan | Fixed-cost asset, 5-7 year payoff | Prestamos Small Business |
| **RoseCourt commercial kitchen / event venue lease prep** | RC | $40-80K | Prestamos Small Business + Spark | Mixed: leasehold + working capital | SBA 7(a) Small if buying not leasing |
| **CDFI deepening: 2nd round with Prestamos** | All | $50-100K | Prestamos Small Business Loan | Existing relationship → faster + bigger | SBA 7(a) Small |

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## Acquisition + Real Estate tier ($100K - $1M)

| Project | Brand | Capital | Best Instrument | Why | Backup |
|---|---|---|---|---|---|
| **Small AZ business acquisition** ($150-500K SDE) — must fit Brady's 7-brand ecosystem (see Acquisition Playbook) | All | $150-500K total / **$7.5-25K cash** | **SBA 7(a) Small + Seller Note (5% standby)** | New 2026 rule: seller standby note counts as equity → 5% cash. Standard small biz acquisition path. | SBA 7(a) Standard if larger; CDFI down payment if banks balk |
| **Mid-size acquisition** ($500K-$2M SDE) — strategic fit only | All | $500K-$2M / $25-100K cash | **SBA 7(a) Standard + Seller Financing** | Standard acquisition stack; 90% of small biz acquisitions under $5M use 7(a) | Asset purchase + private bank if SBA delays |
| **Commercial real estate** (event venue / production hub / mixed-use) | RC / WHG / MM | $200K-$2M | **SBA 504** (50% bank + 40% SBA + 10% buyer) | Below-market fixed rate on SBA portion; owner-occupied required | SBA 7(a) if mixed-use exceeds 504 occupancy rules |
| **Land acquisition** (rural AZ for WHG / GH / RoseCourt retreats) | WHG / GH / RC | $50-500K | **Seller financing** (most rural AZ land deals); USDA Rural Dev if applicable | Sellers in rural AZ often carry; USDA has rural-specific terms | Personal-financed on small parcels |

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## What does NOT belong in this matrix (yet)

These are real but should wait:

- **Equity raise / investor capital:** Brady has not raised before; tax + ownership implications need CPA. Defer until $25K+ MRR proven.
- **Revenue-based financing (Pipe / Capchase):** Requires $10K+ MRR. Defer until MM Membership scaled.
- **Invoice factoring:** Requires steady $5K+/mo B2B invoice flow. Defer.
- **Personal HELOC:** Mixes personal + business risk. Discuss with CPA before any consideration.
- **Crypto-collateralized loans:** Speculative, mixes asset class risk. Skip.

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## The capital-stack logic for any acquisition

For an acquisition, the typical capital stack for Brady's situation looks like:

```
$500,000 example acquisition (small AZ service business)
─────────────────────────────────────────────────
$425,000 (85%) — SBA 7(a) Small from preferred lender
$ 25,000 (5%)  — Seller note on full STANDBY (no payments till SBA paid; counts as equity per 2026 SBA rule)
$ 25,000 (5%)  — Seller note with normal amortization (paid out over 5-7 years)
$ 25,000 (5%)  — Brady cash (down payment)
─────────────────────────────────────────────────
$500,000       — Total purchase price
```

**Brady actual cash out: $25K** (5% of price). **The other 95% is borrowed.**

That $25K can come from:
- CDFI Small Business Loan ($50K Prestamos product) — yes, you can borrow your down payment from a CDFI
- Cash savings + cash flow buildup
- Capital One Spark in interim (high-rate, refi later)

**This is the standard 2026 path.** Real example from research: 32-year-old buyer acquired $500K HVAC business with $25K cash, financed 95% via SBA + seller, business profit $140K covered $75K annual debt service, leaving $65K owner income year 1.

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## When to escalate vs. stick with simpler tools

**Stay with Capital One Spark + Cash Flow when:**
- Project is < $5K
- ROI is within 60 days
- You don't want a lien or covenant on WHG LLC

**Escalate to CDFI Microloan when:**
- Project is $5-50K
- ROI is 6-24 months
- You're building a CDFI relationship for future bigger rounds (this is Brady's medium-term path)

**Escalate to SBA 7(a) when:**
- You're acquiring a business or buying real estate
- Capital need is $50K+
- You have 60-90 days to wait

**Skip SBA, go private (CDFI / friends-and-family / personal) when:**
- Speed matters more than rate
- Deal won't survive 90-day SBA process
- Amount is small enough that paperwork burden > rate savings

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## 7-year ecosystem fit lens (for any capital decision)

Before borrowing, ask: **"Does this asset/expense compound my 7-brand ecosystem over the next 7 years?"**

- **5/5 fit:** Real estate Brady's ecosystem uses (RoseCourt venue, WHG production, retreat land); equipment that supports multiple brands; acquired businesses that feed existing brand customers
- **3-4/5 fit:** Equipment for one brand; working capital for proven product launch
- **1-2/5 fit:** One-time marketing burst; non-recoverable services; bridge financing

**Rule:** Higher-EASE instruments (Spark, CDFI Micro) for 3/5-fit needs. Reserve high-FIT instruments (SBA 7(a), SBA 504) for 5/5-fit acquisitions and real estate.

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_Filed S83-H197 (2026-05-05). Cross-references `financing_toolkit_2026-05-05.md` for instrument detail, `acquisition_playbook_2026-05-05.md` for acquisition specifics._