The S.E.L.F – Social Equity Loan Fund is seeking to secure an infusion of $1M dollars, in addition to a commitment of $26M dollars to support the fund The fund will then be in a position to potentially service the 26 social equity cannabis license holders in Arizona. While the fund doesn’t expect all license holders to enroll in the program, the commitments would enable it to be prepared to service the license holders as the need arises.

Up to $1M loans will be disbursed to each license holder who enrolls in the program. An additional $1M will be held in reserves to cover administrative expenses and any potential overruns.

Fund participation requires a minimum commitment of $250,000 per individual investor. In order to enroll in the fund, 10% of each $250,000 commitment ($25,000) is required to be deposited in the general S.E.L.F account upon execution of the Fund Commitment Letter. The monies will be used to cover the fund’s administrative costs and potential project overruns.

Once a license holder is accepted into the S.E.L.F program and a start-up budget is developed, the fund administrator will notify the next investor. The administrator will provide wiring instructions for the balance of the financial commitment. Investors will be selected based upon the date they joined the program, executed the Fund Commitment Letter and wired their 10%.

An accounting of all administrative expenses, in addition to the monthly disbursements made on behalf of the license holders, will be released by the 15th day of the following month.

Loan terms are low interest (5-6%) loans payable over 36 months, commencing 1 year after the dispensary opens.

Although the loans do not require a credit check or personal guarantees, an individual designated by the advisory board, will be named a board member of the licensed entity.

In addition to the repayment of the principal and annual interest payment, investors will collectively receive 4% equity in each of the multi-million dollar legal cannabis enterprises. The S.E.L.F will receive 1% in each of the entities, for a total of a 5% equity share.

Licenseholders will be required to commit 5% of their gross revenues to non-profit organizations that service people from disproportionately impacted areas. The licenseholder can designate their preferred charities. The advisory board intends to work directly with the Urban League of Greater Phoenix to oversee the charitable contributions.

An Advisory Board of highly qualified industry professionals will oversee the program in an advisory capacity. It is expected that the board will meet monthly, either in-person or electronically. Investors will be invited to networking events with the license holders and the advisory board to ensure open channels of communication.

The Advisory Board will dictate regulations and policies to ensure compliance with state law while servicing the ongoing needs of the license holders. The direct contact for the license holders and investors will be the full-time administrator, who will be responsible for weekly payouts as well as regular reporting to the board and investors.

A full-time experienced Administrator will be responsible for the weekly disbursements to the loan recipients. The Administrator will report to the Advisory Board of highly qualified industry professionals who will have veto authority over any unauthorized disbursement. Fund investors will receive monthly progess reports and an accounting of all disbursements.

Once repayments commence, principal repayment as well as the return on investment will be issued quarterly.