Entrepreneur Information

FRIENDS AND FAMILY FUNDING

RUNWAY partners with values-aligned financial institutions and investors to provide economically disadvantaged entrepreneurs with early-stage "We believe in you" funding and holistic business support to bridge the wealth gap for historically Black communities. We provide weekly coaching and a thriving community of support consisting of other entrepreneurs in the portfolio in partnership with Uptima Entrepreneur Cooperative.

OFFERINGS | QUALIFICATIONS | OUR PROCESS | TERMS & CONDITIONS | FAQS

Did you know that on average, friends & family invest $60 Billion a year into early-stage businesses? Most businesses need an average of $30,000 in capital just to get started. Friends and Family capital is typically more flexible and is not tied to your credit score, rather, it is based on the level of preparation and strength of relationship. For many communities, the racial wealth gap is the leading factor for why many great ideas don't leave the napkin. 

 

Understanding friends and family funding

What does the RUNWAY ecosystem offer?

  • A tight-knit network of peer businesses in the Bay Area and Massachusetts

  • Weekly one-on-one business advising

  • Bi-monthly peer business coaching

  • Access to expansive funding & resource networks

How do I qualify for RUNWAY Friends and Family Funding?

Location Matters

Bay Area, Northern California: We work with local banking partners and investors to provide funding for entrepreneurs located in Alameda, Contra Costa, and San Francisco counties in partnership with Self Help Federal Credit Union.

 

You are an entrepreneur with a business in a historically Black community

We prioritize entrepreneurs who have historically been economically oppressed and underfunded. We work with entrepreneurs from all industries who are committed to restoring wealth to Black people through governance, employment and other non-extractive business practices.

 

You are Capital Ready

We prioritize entrepreneurs that have been nominated by our partner accelerator/technical support organization, Uptima Entrepreneur Cooperative. 

Otherwise, completion of a local business incubator or training program that includes development of the business plan and financial forecast. In some cases, this requirement can be waived based on experience.

We welcome early-stage businesses with a strong business model and financial plan that has been tested and validated over time. This means that you are generating sales/revenue and/or have a strong pipeline of business ahead of you.

 

You Get Us, We Get You

RUNWAY partners with businesses that share our values and are interested in growing their businesses in ways that build community wealth and benefit people and the planet over profits alone.

 

What is the process?

  1. Application Referral: Our relationship-based application process helps us get to know you and your business’ immediate and long-term plans. In the spirit of friends and family, we do not rely on traditional bank requirements such as your credit score, or past business performance. Instead we focus deeply on your business model and plan, financial projections, your passion, relationships in the community, and dreams for the future. Applications are referred through RUNWAY partners.

  2. Transparent & Collaborative Analysis: We have a consultative, trust-based underwriting process where you will be supported each step of the way while we conduct our analysis. 

  3. RUNWAY Community Pitch: You will participate in a pitch presentation and discussion with the RUNWAY Credit Committee made up of local community members and business leaders and advisors prepared to support your growth. 

  4. Approval: Upon approval, funding is promptly processed by our local banking partner.

  5. Post-funding Support: You qualify immediately for weekly business advising, peer entrepreneur circles, and recurring RUNWAY community gatherings. 

 

What are the terms of the Friends & Family loans?

We provide funding ranging between $2,500 - $20,000 with a friends & family rate of 4% fixed interest rate for the life of the loan. We recognize growth takes time, so we offer an interest-only period for the first 1.5 - 2 years. See our detailed terms and conditions below.

loan overview

 

MATURITY: 36 Months (3 Years)

AMOUNT: $2,500–$9,999

ORIGINATION FEE: $0

INTEREST RATE: $4%

INTEREST-ONLY PERIOD: 18 Months

 

MATURITY: 60 Months (5 Years)

AMOUNT: $10,000–$20,000

ORIGINATION FEE: $0

INTEREST RATE: $4%

INTEREST-ONLY PERIOD: 24 Months

 

How do I get started?

Step 1: Download the One-Pager to learn more.

Step 2: Obtain a Referral from a RUNWAY Partner

Step 3: We schedule a call to get to know each other more deeply.

Step 4: We then extend an invitation to apply or share other resources to prepare for funding to grow your business.

Questions? No problem - check out our Frequently Asked Questions!

Can I pay the loan off sooner than 5 years?

Yes, you can. There is no prepayment penalty associated with our loan product. If you pay off your loan obligation early, you will no longer receive the one-on-one advising and coaching support

Do you only fund Black & Brown entrepreneurs?

We prioritize businesses that support Black communities.

Do you fund non-profits?

We do not fund 501c3 organizations, but fund for-profit social enterprises.

I have bad credit, can I still apply?

Yes, RUNWAY uses a holistic character-based approach to lending and does not rely on your credit score in determining your eligibility for the loan.

**However you can NOT currently be in foreclosure, bankruptcy, or under any liens. If you would like to There are some requirements based that we will work with you to guage eligibility.**

Do your loans require collateral or a co-signer?

No, applicants are not required to have any material collateral; material collateral is being posted by the loan loss reserve. You do not need a co-signer because credit score is not a determining factor for our loan.

Do you fund youth?

Applicants must be 18+.

I was formerly incarcerated am I eligible to apply?

Yes, you are. We encourage you to apply.

Does RUNWAY fund tech start ups?

RUNWAY funds businesses that can demonstrate a proof of concept, meaning the business’ revenue model has been proven to be viable. RUNWAY generally does not fund tech businesses seeking proof of concept due to the larger amounts of capital required.

Does RUNWAY fund cannabis businesses?

At this time we can not fund any businesses that touch the flower but we can fund auxiliary services in the cannabis industry.

Am I qualified to apply for a RUNWAY Loan if I am also applying for other loans at the same time?

Yes, you are qualified. It is not unusual for businesses owners to combine different loans and financing sources to fulfill their capital needs. Through our consultative credit analysis process we will work with you to determine the best financing plan based on your funding goals and your business's financial projections.

Does Runway fund pre-revenue businesses?

We **do not** fund pre-revenue businesses. Fundamentally we do not advise businesses in our communities to take on debt financing, if they are not generating consistent monthly sales/revenue.

We prioritize early-stage businesses that have already tested out their business model and have a clear proof of concept. This means they have either already generated sales/revenue OR have a contract in hand with a clear pathway forward toward generating increasing monthly revenue.