Bortech, in Keene, N.H., was nearly sold to a Seattle-based company before a local entrepreneur, Leo White, stepped in to buy it. White was committed to keeping the enterprise in N.H. and needed some growth capital.

“Like many small businesses that are in a phase of growth or selling the business to an individual or the employees, Bortech was too risky to qualify for bank loans and its projected 20% annual growth was not large enough to attract equity,” said Vested for Growth Managing Director John Hamilton.

Bortech employee at work station

The obstacle

Bortech was a solid business, but had lost money two years earlier, was bringing in a new ownership team, and had insufficient collateral.

As a result, banks viewed the company as a risky loan. The company’s projected growth wasn’t large enough to attract venture capitalists.

Why VFG made this investment

Bortech’s specialty-welding product dominated its niche market and White, its new owner, had learned the right lessons from the business's earlier loss. He had a strong management team and a convincing growth plan, which included capturing new markets. Royalty payments on the investment were based on a percentage of future sales.

The result

Three years after Vested for Growth’s 2002 investment, Bortech had doubled its sales and staff, and expanded employee benefits including profit sharing, a 401K plan, and short- and long-term disability insurance. White repaid VFG just three years into the 10-year loan, when Bortech became fully bankable.


Bortech website
Business success story on New Hampshire Community Loan Fund site: Bortech worker feels her voice counts

Press release: Growing manufacturer becomes bankable

Leo White
Flexible capital from VFG got me into the game, and the CEO peer group keeps me playing at my best.