Deciding to launch your dream business can be an exciting and rewarding experience. However, turning your vision into reality often takes more than just passion, you’ll also need funding to get it off the ground. For startups, though, securing financing can be a significant challenge. To help you overcome this, there are loan programs specially designed to help you access patient capital – an essential resource when funding a startup business.
In this overview, you’ll learn what patient capital is, why it’s important, and how you can access it, including the new loan programs specifically created for startup patient capital.
What is patient capital?
Patient capital is designed to give small businesses the chance to access financing to create a strong foundation with additional time and breathing room to repay the loan while ramping up operations. It has a patient period of repayment, meaning you’ll only have to pay less than interest-only during that time.
This is a great option if you have a startup or early-stage business because you’ll get the capital needed to launch your business, and more flexibility to pay it back over time.
Why is patient capital important?
When launching a startup business, you’ll need to get the right type of financing, which means having a loan that works for you now and in the future. You need a loan that builds your business up rather than making you feel like you’re always playing catch-up.
As you try to secure funding, most lenders are looking for “skin in the game” – meaning you have a personal investment in the business, like investing a percentage of your own money or equity. If you don’t have any equity to offer up, it can be hard for a lender to approve your loan, and even if they do, they will rarely finance 100% of the project.
This is where patient capital comes in.
Patient capital is a source of funding that addresses the barriers many entrepreneurs experience when trying to access capital. When you’re getting started, you may turn to family or friends for funding or even use your own savings to start your business. But this type of bootstrapping simply isn’t an option for every entrepreneur.
Historical financing inequities have prevented many entrepreneurs from building and accessing generational wealth. And when that’s not available, entrepreneurs either need to apply for financing with a traditional lender or turn to predatory lenders with too good to be true terms. The way to fix this gap is by knowing what financial institutions are offering successful startup patient capital programs.
How can you get patient capital?
You can access patient capital from many different sources. Here are a few options to explore:
Equity investors
Equity investors are the most patient source of capital. This is capital given to your business in exchange for a piece of ownership. The investors’ income is tied to your business’s performance, making them more willing to wait longer to start receiving payments from you. In some cases, they’ll go years without payments while waiting to sell their stake in the business. However, some investor may expect a specific repayment and revenue levels in a set period. Equity investors are suitable for:
- Research and development, especially more speculative research.
- Projects with intense spending to open or acquire market share, with little or no profitability for longer periods of time.
Short-term business needs are not a good fit for equity investors. For example, if you use money from equity investors to pay for inventory, you’re trading long-term ownership in your business in exchange for inventory that you’ll only need for a few months.
Alternative lenders
Traditional lenders often have strict requirements, such as strong credit history, collateral, and consistent revenue, which many early-stage or growing businesses can’t meet. These financing constraints put your business in a bind, as you would need long-term financing for starting and growth. Without having the cash flow needed to repay a long-term loan – you’re making these investments with the hope that your cash flow will eventually grow.
Alternative lenders, like community development financial institutions (CDFIs), that are certified by the U.S. Treasury, offer responsible options that address gaps in the lending landscape. CDFIs are mission-driven, community-based lenders that are dedicated to helping small businesses succeed by offering affordable and flexible access to capital and resources.
Patient capital programs through Pursuit
Pursuit has launched programs that offer patient capital for startup and early-stage businesses. The Main Street Capital Loan Fund and Flex Loan programs offer long-term loans with six-year repayment schedules and less than interest-only payments for the first year.
This supports your business’s cash flow and allows your business to start actually generating profits before needing to repay the full principal and interest. These programs were specifically created so that you can have the resources to launch and stay on track to succeed and achieve your longer-term business goals.
The Main Street Capital Loan Fund and Flex Loan can be used to finance:
- Slower-growing businesses starting from the ground up: These are businesses that require capital to build out and open, but can take up to two years to reach full financial viability. These businesses face challenges in accessing capital because of the longer time to reach profitability. The full year of less than interest-only payments offered by these programs gives your business breathing room while your cash flow builds up.
- Business development efforts that need more time to be effective: For small businesses less than 4 years old, many investments in long-term growth take time to pay off. For example, if you hire a marketing agency for marketing support, it can have a major positive impact on your market position, but it can take months or even a year to fully realize those results.
How patient capital from Pursuit has benefited small businesses
Since the Main Street Capital Loan Fund launched in September 2024, many entrepreneurs have been able to fund their business dreams. Here are some of their stories:
David Gardingham at Popularity Soda Popcorn Culture: David Gardingham co-owns Popularity Soda Popcorn Culture, a fast-casual snack bar that serves custom popcorn, soda, and baked goods. With the support of the Main Street Capital Loan Fund, he was able to launch the business in June 2025. He says:
“Interest-only payments will help immensely. It means more money that as we launch, we can put more money into the business and make it what we envision. It also boosted our confidence – I feel empowered to launch the way I want for short- and long-term success.”
Lasha Takalandze and Megi Endeladze at Penny’s Coffee Shop: Lasha and Megi co-own Penny’s Coffee Shop, a cozy café located in Downtown Buffalo, NY. Lasha and Megi had to use their own savings to finance their business because they couldn’t access funding as a new business, until they found the Main Street Capital Loan Fund. Megi shares:
“We’ve used the financing to help launch our coffee shop, including things like branded mugs and other goods. The interest-only payment is a huge help.”
Candyce Platt at The Lemon Room: Candyce Platt co-owns The Lemon Room, a cocktail bar and restaurant using fresh local ingredients in the Niagara County region. Candyce tried to access financing through traditional channels, but as a startup in the restaurant and bar industry, the bank couldn’t take the risk. Through community connections, she discovered the Main Street Capital Loan Fund, and now, she opened her business in May 2025! She shares her experience:
“Having this loan and the interest-only term is so important. It means we can focus on launching and building our business while also being able to stay afloat personally, because we have the operating funds we need to get through an important time.”
Pursuit can help you get the financing you need
Pursuit is empowering businesses in all communities by providing access to affordable loans and resources to reach higher and grow. We offer loan programs in New York, New Jersey, Connecticut, Pennsylvania, Illinois, Nevada, and Washington to keep small businesses thriving.
We offer more than 15 loan options, including the Main Street Capital Loan Fund and the Flex Loan, to meet your business needs and fuel your entrepreneurial dreams.
Contact us to learn more about ways we can help you make your business vision a reality.