Lafayette Square USA, a business development company, announced that ING Capital has increased commitments to the hybrid credit facility that closed earlier this year. EverBank and First Citizens Bank will provide additional commitments which will increase the existing facility from $75 million to $150 million. Lafayette Square's revolving credit is expected to continue to grow through an uncommitted accordion feature through which existing and new lenders may, at their option, agree to provide additional financing up to $250 million. The annual interest rate applicable to borrowings under the facility is based on a range of alternative rates, including term SOFR plus a margin of 2.70%.

In addition, the annual interest rate will be adjustable based on an innovative sustainability linked loan ("SLL") pricing structure, with ING acting as the sole Sustainability Structuring Agent. The SLL's key performance indicators directly reference Lafayette Square's 2030 goals to 1) support 100,000 working-class jobs, 2) invest 50 percent of capital to support working-class communities, and 3) curate benefits for 50 percent of its portfolio companies through its Worker Solutions platform. This revolver works in tandem with Lafayette Square's recently announced Specialized Small Business Investment Company ("SSBIC") license, granted by the U.S. Small Business Administration ("SBA") and focused on providing financing to small business ventures owned and managed by historically underrepresented populations, specifically women, minorities, and veterans.

"We are uniquely positioned, with access to a sustainability-linked corporate revolver and two SBIC licenses providing 10-year SBA debentures, to benefit from low-cost, long-duration liabilities" said Damien Dwin, Founder and CEO of Lafayette Square's parent company. "ING's expanded commitment to this revolver, alongside new commitments from EverBank and First Citizens, indicates growing industry alignment with our mission to stimulate economic activity in working-class places while creating economic benefits for our shareholders."

"Lafayette Square broke new ground for the sector with the sustainability-linked financing back in June. It's great to see their ambition growing already, and we're pleased to be there to help them achieve their goal of empowering business in local communities," said Grace Fu, head of Fund Finance Americas at ING.