Valley Capital Corporation

Valley Capital Corporation's primary objective is to provide long-term debt and equity capital to small business concerns which are at least 51% owned by economically or socially disadvantaged entrepreneurs. Operating within the Tennessee Valley Region, Valley Capital Corporation seeks investment opportunities where there exists a viable market for a product or service and a management team that can capitalize on the opportunity.

Investment Philosophy

Valley Capital Corporation seeks to invest in acquisitions of majority-owned companies with successful operating records and emerging companies with the potential for substantial growth in revenues and profits.

Investments are usually structured as equity instruments or long-term debentures with a detachable warrant, which when converted will represent less than 50% of the outstanding securities. Valley Capital Corporation will consider investments between $25,000 and $300,000 and expects to hold an investment for a period of five to seven years.

Investment Profile

Valley Capital Corporation prefers to make investments in companies that have the potential to become a significant factor in a particular market (e.g., manufacturing, service and chain retail operations) anywhere in the Tennessee Valley Region. Valley Capital Corporation looks for the following characteristics in all of its investments:

Distinctive proprietary product lines
Continued market potential
A return on investment commensurate with risk and above industry averages
An experienced and dedicated management team

Investment Syndications

To enhance the probability of successfully financing each venture, the capabilities and resources of Valley Capital Corporation's management staff is available to assist the portfolio and non-portfolio companies in the acquisition of existing companies and overall corporate management assistance.

Valley Capital Corporation has an experienced management team that enables the company to take a lead roll in syndicating investments with venture companies which are of smaller or larger size and scope which will assure its clients of the successful completion of an acquisition or expansion financing.

Evaluating The Investment Opportunity

Valley Capital Corporation's well qualified investment staff is responsible for identifying, analyzing, structuring and recommending investments to the Board of Directors for final approval. Additionally, the staff is responsible for ongoing monitoring of each investment to protect the interest of Valley Capital Corporation and the entrepreneur. Valley Capital Corporation will review any practical business proposal and will seek to provide timely, thoughtful responses within a reasonable time period.

To initiate the evaluation process, an applicant must submit a well formulated business plan, which states the goals of the company and delineates the following:

Management Plan (Organization Chart and resumes with hiring schedule)
Marketing Plan
Financing Plan (including the financing requirements)

To become familiar with an applicant's operation, a representative from Valley Capital Corporation will conduct a site visit and perform a detailed analysis once Valley Capital Corporation has expressed an initial level of interest.

Finally, should the staff make a positive recommendation for investment, a presentation will be made to the Board of Directors for the final investment decision.