2025-08-04T14:06:55-04:00 2024-12-31 341602442 H & J CERTIFIED PUBLIC ACCOUNTANTS INC 7555 FREDLE DR STE 110 CONCORD OH 44077 990 2024-01-01 341567708 GROWTH CAPITAL CORPORATION GROW 2165922332 1360 E 9TH ST STE 950 CLEVELAND OH 44114 JOHN KROPF PRESIDENT/EXEC DIR 2165922343 2025-08-03 true true ROLLAND B STANDISH P00169705 4409512997 2025-07-30 2024 2025-03-06 01:10:19Z JOHN KROPF 1360 EAST NINTH STREET IMG CENTER SUITE 950 CLEVELAND OH 44114 1952274 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 7 9 0 3562 0 1776991 1819020 84171 92250 35383 41004 1900107 1952274 0 0 925244 991711 0 0 810977 749696 1736221 1741407 163886 210867 4158077 3629501 1728414 988971 2429663 2640530 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 1473557 1819020 FISCAL YEAR 2024 CONTINUED TO DEMONSTRATE A WEAK LENDING ENVIRONMENT. LOAN PRODUCTION WAS EXTREMELY WEAK AS 2023 ENDED AND CONTINUED A NEGATIVE TREND EARLIER IN THE YEAR. HOWEVER, WE WERE ABLE TO INCREASE TOTAL LOAN PRODUCTION BY SOME 25%, EVEN AS ONE OF THE MOST CHALLENGING BUSINESS ENVIRONMENTS CONTINUED THROUGHOUT THE YEAR. WE FINISHED THE YEAR WITH SEVENTEEN (17) SBA 504 LOAN APPROVALS AND FOURTEEN (14) COMMUNITY ADVANTAGE APPROVALS FOR A TOTAL OF THIRTY-ONE (31). GROWTH CAPITAL STACKED UP EXTREMELY WELL INDUSTRY-WISE WITH SUBSTANTIALLY BETTER RESULTS THAN OUR MIDWEST REGION FIVE COUNTERPARTS, INCREASING LOAN PRODUCTION NUMBERS AND DOLLARS BY 42% AND 91% RESPECTIVELY WHILE MOST OTHER CDCS DECLINED IN LOAN VOLUME. ALL OF THESE LOANS SUPPORT SMALL BUSINESSES THAT ARE "FINDING GROWTH OPPORTUNITIES". THEY MAY BE OPPORTUNITIES TO EXPAND MARKET REACH, CAPTURE NEW CUSTOMERS, INVESTING IN NEW EQUIPMENT OR EXPANDING OPERATIONS WITH NEW COMMERCIAL REAL ESTATE OR CONSTRUCTION OF NEW PLANTS AND FACILITIES. THE PAGES OF THIS REPORT TELL THE STORIES OF SOME OF THOSE COMPANIES AND LIVES THAT WE HAVE IMPACTED. NO MATTER THE OPPORTUNITIES, OUR BORROWERS ARE FINDING THEM AND GROWTH CAPITAL IS HELPING THEM WHILE FINDING OUR OWN GROWTH OPPORTUNITIES. GROWTH CAPITAL IS FINDING GROWTH OPPORTUNITIES IN IT INFRASTRUCTURE PLATFORMS THAT WILL IMPROVE OUR PROCESSING EFFICIENCY. WE ARE FINDING GROWTH OPPORTUNITIES WITH OUR ENHANCED SBA 504 REFINANCE PROGRAM AND OUR RECENT APPROVAL FOR PARTICIPATION IN SBA'S NEW EXPORT EXPRESS PROGRAM THAT SUPPORTS SMALL BUSINESS FINDING GROWTH OPPORTUNITIES IN OVERSEAS MARKETS. ADDITIONALLY, SBA IS ALL IN ON ITS "MADE IN AMERICA MANUFACTURING INITIATIVE- AND GROWTH CAPITAL HAS THE SBA 504 LOAN TO SUPPORT THE MANUFACTURING COMPANIES POISED FOR GROWTH OPPORTUNITIES RIGHT HERE IN OHIO. 1473557 false false false false false false false false false false false false true true true 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 7 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 258693 0 79852 JUAN HERNANDEZ BUSINESS DEV 40.00 X 155384 0 6701 JEFFREY SOZIO SBA LOAN OFF 40.00 X 124825 0 30261 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 KELLY SMITH DIRECTOR 1.00 X 0 0 0 KEVIN SCHMOTZER DIRECTOR 1.00 X 0 0 0 538902 116814 3 false true false 7(A) LENDING ACTIVITIES 522298 1276397 1276397 504 LENDING AND SERVICING ACT 522298 542623 542623 1819020 92250 92250 ANNUAL MEETING 900099 41004 41004 41004 1952274 1860024 92250 298693 179216 119477 462981 436321 26660 59590 48541 11049 116460 94867 21593 53987 43977 10010 88727 88727 34144 34144 9736 9736 97346 87611 9735 94758 85282 9476 105402 100132 5270 31826 30235 1591 105986 105986 46330 27485 18845 LOAN SERVICING EXPENSE 93011 93011 PROV LOAN LOSS RESERVE 35680 35680 LOAN SALE FEES AND OTHER 6750 6750 1741407 1473557 267850 0 463171 578425 2800966 2309952 47968 43070 496430 383688 16141 16241 333401 298125 4158077 3629501 140509 174240 56897 15777 1251453 564400 279555 234554 1728414 988971 X 2429663 2640530 2429663 2640530 4158077 3629501 210867 X false true X true false RIGHT-OF-USE ASSET 221854 INTEREST RECEIVABLE 54207 SERVICING AND OTHER 22064 298125 LEASE LIABILITY 234554 234554 X 1952274 1952274 1952274 1741407 1741407 1741407 SCHEDULE D, PAGE 3, PART X GROWTH CAPITAL IS INCORPORATED AS A NOT-FOR-PROFIT ORGANIZATION UNDER CHAPTER 17 OF THE OHIO REVISED CODE, IS EXEMPT FROM FEDERAL INCOME TAXES UNDER INTERNAL REVENUE CODE SECTION 501(C)(4). X true true X X X false false false false false false false false false JOHN KROPF PRESIDENT/EXEC DIR 186193 72500 38491 41361 338545 JUAN HERNANDEZ BUSINESS DEV DIR 135384 20000 6701 162085 JEFFREY SOZIO SBA LOAN OFFICER 109825 15000 5728 24533 155086 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 FISCAL YEAR 2024 CONTINUED TO DEMONSTRATE A WEAK LENDING ENVIRONMENT. LOAN PRODUCTION WAS EXTREMELY WEAK AS 2023 ENDED AND CONTINUED A NEGATIVE TREND EARLIER IN THE YEAR. HOWEVER, WE WERE ABLE TO INCREASE TOTAL LOAN PRODUCTION BY SOME 25%, EVEN AS ONE OF THE MOST CHALLENGING BUSINESS ENVIRONMENTS CONTINUED THROUGHOUT THE YEAR. WE FINISHED THE YEAR WITH SEVENTEEN (17) SBA 504 LOAN APPROVALS AND FOURTEEN (14) COMMUNITY ADVANTAGE APPROVALS FOR A TOTAL OF THIRTY-ONE (31). GROWTH CAPITAL STACKED UP EXTREMELY WELL INDUSTRY-WISE WITH SUBSTANTIALLY BETTER RESULTS THAN OUR MIDWEST REGION FIVE COUNTERPARTS, INCREASING LOAN PRODUCTION NUMBERS AND DOLLARS BY 42% AND 91% RESPECTIVELY WHILE MOST OTHER CDCS DECLINED IN LOAN VOLUME. ALL OF THESE LOANS SUPPORT SMALL BUSINESSES THAT ARE "FINDING GROWTH OPPORTUNITIES". THEY MAY BE OPPORTUNITIES TO EXPAND MARKET REACH, CAPTURE NEW CUSTOMERS, INVESTING IN NEW EQUIPMENT OR EXPANDING OPERATIONS WITH NEW COMMERCIAL REAL ESTATE OR CONSTRUCTION OF NEW PLANTS AND FACILITIES. THE PAGES OF THIS REPORT TELL THE STORIES OF SOME OF THOSE COMPANIES AND LIVES THAT WE HAVE IMPACTED. NO MATTER THE OPPORTUNITIES, OUR BORROWERS ARE FINDING THEM AND GROWTH CAPITAL IS HELPING THEM WHILE FINDING OUR OWN GROWTH OPPORTUNITIES. GROWTH CAPITAL IS FINDING GROWTH OPPORTUNITIES IN IT INFRASTRUCTURE PLATFORMS THAT WILL IMPROVE OUR PROCESSING EFFICIENCY. WE ARE FINDING GROWTH OPPORTUNITIES WITH OUR ENHANCED SBA 504 REFINANCE PROGRAM AND OUR RECENT APPROVAL FOR PARTICIPATION IN SBA'S NEW EXPORT EXPRESS PROGRAM THAT SUPPORTS SMALL BUSINESS FINDING GROWTH OPPORTUNITIES IN OVERSEAS MARKETS. ADDITIONALLY, SBA IS ALL IN ON ITS "MADE IN AMERICA MANUFACTURING INITIATIVE- AND GROWTH CAPITAL HAS THE SBA 504 LOAN TO SUPPORT THE MANUFACTURING COMPANIES POISED FOR GROWTH OPPORTUNITIES RIGHT HERE IN OHIO. 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.