Investment Strategies

BFTP/CNP’s primary investment objective is to assist small business owners in developing their products and increasing sales to a point where they can either fund their growth internally, become eligible for traditional bank financing, or attract outside capital.

We typically make investments that range from $50,000 to $150,000 per year up to three years. Our funding relationship with any one company typically does not go beyond three years and has a maximum investment of roughly $450,000.

We take calculated risks investing in young, unproven companies that cannot secure seed funding through conventional means. We also assist early stage firms as they prepare to raise additional capital, and provide an important initial endorsement for a new company.

CNP’s investment strategy, which is not intended to replace traditional bank financing, is executed in a phased, milestone-driven manner. There are no fees to apply, but there is a match requirement. To ultimately put the most money into the best candidates, we make follow-on investments in the client companies that demonstrate the most progress related to their stated plan. 

CNP has formed relationships with several investor groups and forwards investment opportunities to angel networks in Altoona, Harrisburg, Williamsport, and Lancaster. Efforts are being made to establish similar networks in other areas of CNP’s footprint. BFTP-funded venture capital groups such as Penn Venture Partners and Draper Triangle Ventures are available to assess and review the portfolio’s growth companies for possible investment.

Payback Terms

Start-up or Early Phase
Investment payback consists of a ten-year amortized loan at a rate of prime plus 2% with BF having the option to convert unpaid principal to equity. Company payback does not begin until BF funding ends. Interest does not accrue during the initial funding period or any subsequent funding periods that may occur.

Existing Company or Phase Four
Investment payback consists of a five-year amortized loan at the prime rate on the date of funding approval. Interest does not accrue during the initial funding period or any subsequent funding periods that may occur.