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Premier Capital Corp. has conducted annual meetings since its formation in 1976. But the event earlier this month had more of an uplifting aura as the SBA-backed lender announced plans to move into the venture capital arena.
Premier Venture Corp., its new subsidiary, will nurture small and medium-size businesses by providing cash for start-up and expanding companies. Some of those may include high-tech firms. Premier Capital's directors had kicked around the idea for a few years before concluding the time was right to enter the venture capital market.
"For the past 3-1/2 years, we've been in the position where we have funds to begin looking at other alternatives," said David Clegg of CEO Partners and a director of Premier Capital. "We formed a committee and began brainstorming ideas."
What they agreed to is an entity that will provide $50,000 to $250,000 investments. Premier Capital has invested $500,000 in its spin-off and is looking for more capital from its members and other outside sources. The goal is to manage a $10 million equity fund.
Premier Capital, directed by David Amick, has helped provide Small Business Administration 504 loans to 376 businesses and has $1.1 million in...