2026-06-09T15:47:23-04:00 2025-12-31 341602442 H & J CERTIFIED PUBLIC ACCOUNTANTS INC 7555 FREDLE DR STE 110 CONCORD OH 44077 990 2025-01-01 341567708 GROWTH CAPITAL CORPORATION GROW 2165922332 1360 E 9TH ST STE 950 CLEVELAND OH 44114 JOHN KROPF PRESIDENT/EXEC DIR 2165922343 2026-06-20 true ROLLAND B STANDISH P00169705 4409512997 2026-06-08 2025 2025-03-06 01:10:19Z JOHN KROPF 1360 EAST NINTH STREET IMG CENTER SUITE 950 CLEVELAND OH 44114 2059430 false X GROWTHCAPITALCORP.COM X 1981 OH TO PROVIDE FINANCING ASSISTANCE TO AREA BUSINESSES AS PART OF AN OVERALL MISSION TO FOSTER ECONOMIC GROWTH AND JOB CREATION IN NORTHEAST OHIO. 9 9 9 12 0 0 1819020 1955769 92250 62201 41004 41460 1952274 2059430 0 0 991711 1099488 0 0 749696 790833 1741407 1890321 210867 169109 3629501 3732333 988971 922694 2640530 2809639 X TO PROVIDE FINANCING ASSISTANCE TO AREA BUSINESSES AS PART OF AN OVERALL MISSION TO FOSTER ECONOMIC GROWTH AND JOB CREATION IN NORTHEAST OHIO. false false 1622825 1955769 DURING FISCAL YEAR 2025, THE ORGANIZATION EXCEEDED ITS ANNUAL LOAN PRODUCTION GOAL FOR THE FIRST TIME IN THREE FISCAL YEARS. A TOTAL OF 43 LOANS WERE APPROVED, CONSISTING OF 22 SBA 504 LOANS AND 21 SBA 7(A) LOANS, REPRESENTING 103% OF THE ANNUAL PRODUCTION GOAL AND REFLECTING A BALANCED MIX OF LENDING ACTIVITY ACROSS PROGRAMS. LOAN PRODUCTION INCREASED SIGNIFICANTLY COMPARED TO THE PRIOR YEAR, WITH APPROVED LOAN VOLUME INCREASING BY MORE THAN 42% BASED ON THE NUMBER OF LOANS APPROVED. THE ORGANIZATION APPROVED APPROXIMATELY 22.7 MILLION IN FINANCING DURING THE FISCAL YEAR, INCLUDING 19.4 MILLION THROUGH THE SBA 504 PROGRAM AND 3.3 MILLION THROUGH THE SBA 7(A) PROGRAM. WHILE TOTAL APPROVED LOAN DOLLARS REACHED APPROXIMATELY 82% OF THE ANNUAL DOLLAR- VOLUME GOAL, AVERAGE LOAN SIZE DECLINED DUE TO A GREATER NUMBER OF SMALLER LOANS. MANAGEMENT BELIEVES THESE LOANS CONTINUE TO SUPPORT THE ORGANIZATION'S MISSION OF PROVIDING GROWTH CAPITAL TO SMALL BUSINESSES AND UNDERSERVED BORROWERS. DURING FISCAL YEAR 2025, 32 LOANS CLOSED, INCLUDING 18 SBA 504 LOANS TOTALING APPROXIMATELY 14.7 MILLION AND 14 SBA 7(A) LOANS TOTALING APPROXIMATELY 2.7 MILLION. LOAN CLOSINGS EXCEEDED THE ANNUAL PRODUCTION GOAL AND CONTRIBUTED POSITIVELY TO OPERATING RESULTS. THE ORGANIZATION'S LOAN PORTFOLIO GREW BY APPROXIMATELY 10.9 MILLION DURING THE FISCAL YEAR. PORTFOLIO GROWTH BENEFITED FROM THE FUNDING OF SEVERAL LARGER SBA 504 LOANS AND A SLOWER PACE OF LOAN PAYOFFS COMPARED TO PRIOR PERIODS. PORTFOLIO GROWTH EXCEEDED ESTABLISHED ANNUAL TARGETS AND REPRESENTED THE STRONGEST YEAR-END GROWTH ACHIEVED IN RECENT YEARS. THE LENDING ENVIRONMENT CONTINUED TO BE AFFECTED BY PREVAILING INTEREST RATES. HOWEVER, STABILIZATION OF THE 10-YEAR TREASURY RATE SUPPORTED SBA 504 LENDING ACTIVITY, WHILE REDUCTIONS IN INTEREST RATES DURING THE YEAR ARE EXPECTED TO PROVIDE PAYMENT RELIEF TO CERTAIN BORROWERS AND SUPPORT FUTURE PORTFOLIO PERFORMANCE. THE ORGANIZATION ALSO EXPERIENCED IMPROVEMENTS IN PORTFOLIO QUALITY DURING FISCAL YEAR 2025. THE SBA 504 STRESSED LOAN RATE DECLINED FROM 20.49% AT THE BEGINNING OF THE FISCAL YEAR TO 6.32% AT YEAR-END, PRIMARILY DUE TO PROACTIVE WORKOUT EFFORTS AND SBA-APPROVED REPAYMENT ARRANGEMENTS. THE SBA 7(A) STRESSED LOAN RATE DECREASED FROM 6.80% TO 2.53% DURING THE SAME PERIOD. IN ADDITION, THE ORGANIZATION MAINTAINED A STRONG LOAN LOSS RESERVE POSITION, WHICH MANAGEMENT BELIEVES PROVIDES MEANINGFUL PROTECTION AGAINST CREDIT RISK. THE ORGANIZATION'S MISSION-RELATED LENDING RESULTS REMAINED STRONG DURING FISCAL YEAR 2025. LOANS MADE TO SBA-DESIGNATED UNDERSERVED MARKETS REPRESENTED MORE THAN 89% OF TOTAL LENDING ACTIVITY, EXCEEDING APPLICABLE SBA BENCHMARKS. LENDING TO LOW-TO-MODERATE-INCOME BORROWERS AND COMMUNITIES REPRESENTED MORE THAN 82% OF COMMUNITY ADVANTAGE LENDING ACTIVITY. WOMEN-OWNED BUSINESSES ACCOUNTED FOR APPROXIMATELY 28% OF TOTAL LENDING, MINORITY-OWNED BUSINESSES REPRESENTED APPROXIMATELY 14%, VETERAN- OWNED BUSINESSES REPRESENTED APPROXIMATELY 21%, RURAL BUSINESSES REPRESENTED APPROXIMATELY 14%, AND MANUFACTURING COMPANIES REPRESENTED APPROXIMATELY 17% OF LOANS ORIGINATED DURING THE YEAR. THE ORGANIZATION ESTIMATES THAT BUSINESSES RECEIVING FINANCING THROUGH ITS PROGRAMS CREATED APPROXIMATELY 197 NEW JOBS DURING FISCAL YEAR 2025, FURTHER ADVANCING ITS MISSION OF SUPPORTING ECONOMIC DEVELOPMENT AND SMALL BUSINESS GROWTH WITHIN THE COMMUNITIES IT SERVES. S 1622825 false false false false false false false false false false false false true true false true false false false false false false false false false false false false true false false false false false true false true false false false false false false false false true 4 0 true 9 true false false false false true true false false false X 9 9 false false false false true true true true true false false true true true true true true true true false X X JOHN KROPF 2165922332 1360 EAST NINTH STREET IMG CENTER SUITE 950 CLEVELAND OH 44114 JOHN KROPF PRESIDENT/EX 40.00 X 278445 0 73520 JUAN HERNANDEZ BUSINESS DEV 40.00 X 160127 0 24660 JEFFREY SOZIO SBA LOAN OFF 40.00 X 128837 0 6605 WESLEY GILLESPIE CHAIR 3.00 X X 0 0 0 DANIEL PRENDERGAST TREASURER 3.00 X X 0 0 0 TIM BRECKNER DIRECTOR 1.00 X 0 0 0 GLORIA GATES DIRECTOR 1.00 X 0 0 0 DAVID KINZEL DIRECTOR 1.00 X 0 0 0 CHRISTOPHER KOLAR DIRECTOR 1.00 X 0 0 0 JAY RUTTER DIRECTOR 1.00 X 0 0 0 KEVIN SCHMOTZER DIRECTOR 1.00 X 0 0 0 KELLY SMITH DIRECTOR 1.00 X 0 0 0 567409 104785 3 false true false 504 LENDING AND SERVICING ACT 522298 1329554 1329554 7(A) LENDING ACTIVITIES 522298 626215 626215 1955769 62201 62201 ANNUAL MEETING 900099 41460 41460 41460 2059430 1997229 62201 309693 185816 123877 548218 526157 22061 64199 53570 10629 115849 96669 19180 61529 51342 10187 77886 77886 34643 34643 6661 6661 89008 80107 8901 113104 101794 11310 101188 96129 5059 55424 52633 2791 39909 39909 46711 27853 18858 LOAN SERVICING EXPENSE 111779 111779 PROV LOAN LOSS RESERVE 93485 93485 LOAN SALE FEES AND OTHER 11139 11139 SBA GUARENTY FEE 9896 9896 1890321 1622825 267496 0 578425 252778 2309952 2920922 43070 36945 383688 238413 16241 34931 298125 248344 3629501 3732333 174240 212597 15777 27302 564400 493850 234554 188945 988971 922694 X 2640530 2809639 2640530 2809639 3629501 3732333 169109 X false true X true false RIGHT-OF-USE ASSET 188945 INTEREST RECEIVABLE 59399 248344 LEASE LIABILITY 188945 188945 2059430 2059430 2059430 1890321 1890321 1890321 X true true X X X false false false false false false false false false JOHN KROPF PRESIDENT/EXEC DIR 205945 72500 41596 31924 351965 JUAN HERNANDEZ BUSINESS DEV DIR 140127 20000 5496 19164 184787 SEE BELOW false SCHEDULE L, PART V PART IV - LINE 28C: MEMBERS OF THE BOARD AND CERTAIN STANDING COMMITTEES INCLUDE EMPLOYEES OF LENDING INSTITUTIONS WHO MAY BE A PARTY TO THE LOAN AGREEMENT WITH AN APPLICANT. GROWTH CAPITAL'S POLICY IS FOR THESE APPLICABLE MEMBERS TO ABSTAIN FROM VOTING ON APPROVAL OF THESE APPLICANTS. FORM 990, PAGE 2, PART III, LINE 4A DURING FISCAL YEAR 2025, THE ORGANIZATION EXCEEDED ITS ANNUAL LOAN PRODUCTION GOAL FOR THE FIRST TIME IN THREE FISCAL YEARS. A TOTAL OF 43 LOANS WERE APPROVED, CONSISTING OF 22 SBA 504 LOANS AND 21 SBA 7(A) LOANS, REPRESENTING 103% OF THE ANNUAL PRODUCTION GOAL AND REFLECTING A BALANCED MIX OF LENDING ACTIVITY ACROSS PROGRAMS. LOAN PRODUCTION INCREASED SIGNIFICANTLY COMPARED TO THE PRIOR YEAR, WITH APPROVED LOAN VOLUME INCREASING BY MORE THAN 42% BASED ON THE NUMBER OF LOANS APPROVED. THE ORGANIZATION APPROVED APPROXIMATELY 22.7 MILLION IN FINANCING DURING THE FISCAL YEAR, INCLUDING 19.4 MILLION THROUGH THE SBA 504 PROGRAM AND 3.3 MILLION THROUGH THE SBA 7(A) PROGRAM. WHILE TOTAL APPROVED LOAN DOLLARS REACHED APPROXIMATELY 82% OF THE ANNUAL DOLLAR- VOLUME GOAL, AVERAGE LOAN SIZE DECLINED DUE TO A GREATER NUMBER OF SMALLER LOANS. MANAGEMENT BELIEVES THESE LOANS CONTINUE TO SUPPORT THE ORGANIZATION'S MISSION OF PROVIDING GROWTH CAPITAL TO SMALL BUSINESSES AND UNDERSERVED BORROWERS. DURING FISCAL YEAR 2025, 32 LOANS CLOSED, INCLUDING 18 SBA 504 LOANS TOTALING APPROXIMATELY 14.7 MILLION AND 14 SBA 7(A) LOANS TOTALING APPROXIMATELY 2.7 MILLION. LOAN CLOSINGS EXCEEDED THE ANNUAL PRODUCTION GOAL AND CONTRIBUTED POSITIVELY TO OPERATING RESULTS. THE ORGANIZATION'S LOAN PORTFOLIO GREW BY APPROXIMATELY 10.9 MILLION DURING THE FISCAL YEAR. PORTFOLIO GROWTH BENEFITED FROM THE FUNDING OF SEVERAL LARGER SBA 504 LOANS AND A SLOWER PACE OF LOAN PAYOFFS COMPARED TO PRIOR PERIODS. PORTFOLIO GROWTH EXCEEDED ESTABLISHED ANNUAL TARGETS AND REPRESENTED THE STRONGEST YEAR-END GROWTH ACHIEVED IN RECENT YEARS. THE LENDING ENVIRONMENT CONTINUED TO BE AFFECTED BY PREVAILING INTEREST RATES. HOWEVER, STABILIZATION OF THE 10-YEAR TREASURY RATE SUPPORTED SBA 504 LENDING ACTIVITY, WHILE REDUCTIONS IN INTEREST RATES DURING THE YEAR ARE EXPECTED TO PROVIDE PAYMENT RELIEF TO CERTAIN BORROWERS AND SUPPORT FUTURE PORTFOLIO PERFORMANCE. THE ORGANIZATION ALSO EXPERIENCED IMPROVEMENTS IN PORTFOLIO QUALITY DURING FISCAL YEAR 2025. THE SBA 504 STRESSED LOAN RATE DECLINED FROM 20.49% AT THE BEGINNING OF THE FISCAL YEAR TO 6.32% AT YEAR-END, PRIMARILY DUE TO PROACTIVE WORKOUT EFFORTS AND SBA-APPROVED REPAYMENT ARRANGEMENTS. THE SBA 7(A) STRESSED LOAN RATE DECREASED FROM 6.80% TO 2.53% DURING THE SAME PERIOD. IN ADDITION, THE ORGANIZATION MAINTAINED A STRONG LOAN LOSS RESERVE POSITION, WHICH MANAGEMENT BELIEVES PROVIDES MEANINGFUL PROTECTION AGAINST CREDIT RISK. THE ORGANIZATION'S MISSION-RELATED LENDING RESULTS REMAINED STRONG DURING FISCAL YEAR 2025. LOANS MADE TO SBA-DESIGNATED UNDERSERVED MARKETS REPRESENTED MORE THAN 89% OF TOTAL LENDING ACTIVITY, EXCEEDING APPLICABLE SBA BENCHMARKS. LENDING TO LOW-TO-MODERATE-INCOME BORROWERS AND COMMUNITIES REPRESENTED MORE THAN 82% OF COMMUNITY ADVANTAGE LENDING ACTIVITY. WOMEN-OWNED BUSINESSES ACCOUNTED FOR APPROXIMATELY 28% OF TOTAL LENDING, MINORITY-OWNED BUSINESSES REPRESENTED APPROXIMATELY 14%, VETERAN- OWNED BUSINESSES REPRESENTED APPROXIMATELY 21%, RURAL BUSINESSES REPRESENTED APPROXIMATELY 14%, AND MANUFACTURING COMPANIES REPRESENTED APPROXIMATELY 17% OF LOANS ORIGINATED DURING THE YEAR. THE ORGANIZATION ESTIMATES THAT BUSINESSES RECEIVING FINANCING THROUGH ITS PROGRAMS CREATED APPROXIMATELY 197 NEW JOBS DURING FISCAL YEAR 2025, FURTHER ADVANCING ITS MISSION OF SUPPORTING ECONOMIC DEVELOPMENT AND SMALL BUSINESS GROWTH WITHIN THE COMMUNITIES IT SERVES. S FORM 990, PAGE 6, PART VI, LINE 6 GROWTH CAPITAL MAINTAINS A MEMBERSHIP OF AT LEAST 25 PERSONS ELECTED FROM EACH OF THE FOLLOWING FOUR GROUPS: (I) GOVERNMENT; (II) PRIVATE SECTOR LENDING INSTITUTIONS, (III) COMMUNITY ORGANIZATIONS; AND (IV) BUSINESS ORGANIZATIONS. FORM 990, PAGE 6, PART VI, LINE 7A IF IT IS NECESSARY TO ELECT ADDITIONAL MEMBERS, AN APPOINTED OFFICER OF THE BOARD SHALL NOTIFY THE BOARD CHAIR WHO IMMEDIATELY APPOINTS A COMMITTEE FROM AMONG THE BOARD. NOMINATIONS ARE REPORTED AND NEW MEMBERS ARE ELECTED AT A MEETING OF THE MEMBERS WHERE A QUORUM IS PRESENT AND BY AN AFFIRMATIVE VOTE BY A MAJORITY OF THOSE MEMBERS PRESENT. FORM 990, PAGE 6, PART VI, LINE 7B THE MEMBERS ELECT THE BOARD OF DIRECTORS AND NEW MEMBERS. FORM 990, PAGE 6, PART VI, LINE 11B THE 990 IS PREPARED BY AN INDEPENDENT CPA AND THEN PRESENTED TO THE FINANCE COMMITTEE, FINANCE STAFF, AND THE EXECUTIVE DIRECTOR FOR REVIEW AND APPROVAL. THE COMPLETE RETURN IS THEN ELECTRONICALLY DISTRIBUTED TO THE BOARD OF DIRECTORS FOR REVIEW PRIOR TO FILING WITH THE IRS. AN OFFICER SIGNS THE 990. FORM 990, PAGE 6, PART VI, LINE 12C EACH YEAR, THE BOARD MEMBERS ARE ASKED TO REVIEW THE ORGANIZATION'S CONFLICT OF INTEREST POLICY. AMONG OTHER THINGS, THE POLICY MAKES CLEAR THAT ALL DECISIONS OF THE BOARD, OFFICERS, AND EMPLOYEES OF THE ORGANIZATION ARE MADE SOLELY ON THE BASIS OF A DESIRE TO PROMOTE THE BEST INTEREST OF THE ORGANIZATION AND THE PUBLIC GOOD. THE CONFLICT OF INTEREST STATEMENT REQUESTS BOARD MEMBERS TO IDENTIFY TO THE BEST OF THEIR KNOWLEDGE AFFILIATIONS WITH ORGANIZATIONS THAT MAY BE POTENTIALLY RELATED TO THE FINANCIALS OR OTHER SUBSTANTIVE OPERATIONS OF THE ORGANIZATION. THEY ARE ALSO ASKED TO IDENTIFY CIRCUMSTANCES INVOLVING EITHER THEMSELVES, OR A MEMBER OF THEIR EXTENDED FAMILY, THAT MAY BE CONSTRUED AS A CONFLICT OF INTEREST. AT THE STAFF LEVEL, THE ORGANIZATION'S PERSONNEL ALSO ENSURE THAT THERE ARE NO CONFLICTS OF INTEREST WHEN CONSIDERING THE ENGAGEMENT OF A NEW VENDOR. IF A POTENTIAL CONFLICT IS IDENTIFIED, APPROPRIATE STEPS ARE TAKEN TO BOTH ASSESS THE NATURE OF THE POTENTIAL CONFLICT AND, SUBSEQUENTLY, TO ENSURE THAT THE POSSIBILITY OF AN ACTUAL CONFLICT IS MITIGATED. SUCH MITIGATION IS MANAGED AND THE LETTER AND SPIRIT OF THE CONFLICTS POLICY ARE UPHELD. FORM 990, PAGE 6, PART VI, LINE 15A THE BOARD OF DIRECTORS ANNUALLY EVALUATES THE PERFORMANCE OF THE EXECUTIVE DIRECTOR. COMPENSATION IS BASED ON PERFORMANCE AND COMPARED TO OTHER STATE AND NATIONAL SBA LENDERS AS WELL AS LOCAL BANKING INDUSTRY COMPENSATION LEVELS. THE BOARD OF DIRECTORS HAS ADOPTED THE IRS-WRITTEN "REBUTTABLE PRESUMPTION" CHECKLIST WHICH IS COMPLETED CONTEMPORANEOUS WITH THE EXECUTIVE DIRECTOR'S PERFORMANCE REVIEW. FORM 990, PAGE 6, PART VI, LINE 15B COMPENSATION FOR STAFF WITHIN THE ORGANIZATION IS DETERMINED BY THE EXECUTIVE DIRECTOR. COMPENSATION IS BASED ON PERFORMANCE AND COMPARED TO OTHER STATE AND NATIONAL SBA LENDERS AS WELL AS LOCAL BANKING INDUSTRY COMPENSATION LEVELS. THIS COMPENSATION IS A COMPONENT OF THE BUDGET, WHICH IS REVIEWED AND APPROVED BY THE EXECUTIVE AND FINANCE COMMITTEES AND ALSO BY THE BOARD AS A WHOLE. FORM 990, PAGE 6, PART VI, LINE 19 THE ORGANIZATION'S CURRENT GOVERNING DOCUMENTS, FORM 990 CONFLICT OF INTEREST POLICY AND FINANCIAL STATEMENTS ARE MADE AVAILABLE TO THE PUBLIC UPON REQUEST. THE FORM 990 CAN ALSO BE FOUND ON SEVERAL PUBLICALLY- ACCESSIBLE WEBSITES.