Rand Capital Corporation, a business development company providing alternative financing for lower middle market companies, announced the closing of a $25 million senior secured revolving credit facility. The funds are expected to be used for future portfolio investments. This new senior secured credit facility was provided by M&T Bank.

Daniel P. Penberthy, President and Chief Executive Officer of Rand, commented, “The new facility adds another source of capital to support our strategy, which is focused on continued portfolio expansion into income producing assets to drive investment income and future dividend growth. In addition to the increased liquidity, this facility provides greater flexibility and an increased funding commitment than our previous credit arrangement with the SBA, which was repaid in full during the fourth quarter of 2021.”

The new senior secured credit facility provides for a 5 year term through 2027, at an interest rate calculated using SOFR plus 3.5%.

Rand Capital is an externally-managed business development company (BDC). The Company’s investment objective is to maximize total return to its shareholders with current income and capital appreciation by focusing its debt and related equity investments in privately-held, lower middle market companies with committed and experienced managements in a broad variety of industries. Rand invests in early to later stage businesses that have sustainable, differentiated and market-proven products, revenue of more than $2 million and a path to free cash flow or up to $5 million in EBITDA.