The Business Development Company

What The Business Development Company does

The Business Development Company (BDCRI) is a privately held small business lender founded in 1953 and headquartered at 40 Westminster Street, Suite 702, in Providence, Rhode Island. It operates as an SBA-approved alternative lender under the federal 7(a) and Express programs, providing customized term loans, SBA-guaranteed loans, and revolving lines of credit in ticket sizes ranging from $90,000 to $600,000 to established, revenue-generating small businesses that cannot obtain full financing from traditional banks. The company targets companies in Rhode Island, Southeastern Massachusetts, and Eastern Connecticut, and positions itself as either a primary lender or a subordinate lender filling the gap between senior bank debt and equity for working capital, expansion, equipment, debt refinancing, and M&A use cases.

BDCRI's product suite consists of three core offerings — term loans repaid monthly over 5–7 years (with optional interest-only periods and tiered/staged funding), SBA loans with 50–75% government guarantees, and revolving lines of credit based on eligible accounts receivable and inventory ($75K–$300K). Revenue is generated through interest income on outstanding loans plus upfront fees: a 1% underwriting fee, $3,000–$5,000 in legal fees, and potential appraisal fees. The company does not operate a technology platform — it is explicitly described as a traditional lender without proprietary technology — and conducts underwriting through a relationship-based screening process that includes site visits, financial review, and Executive Committee approval.

BDCRI distributes and acquires customers through direct channels (website application, phone) and an institutional referral network of 11 member banks including Bank of America, Citizens, Santander, Webster, Washington Trust, BankNewport, Centreville Bank, Bristol County Savings, HarborOne, Shoreham Bank, and BankRI. It also partners with regional economic development organizations — chambers of commerce, Commerce Rhode Island, SBA, Slater Fund, RIMA, RISBDC, and Social Enterprise Greenhouse — for top-of-funnel lead generation. The company is led by President Peter C. Dorsey (30 years of small business lending experience) and a board chaired by Douglas Scala (Regional President, Webster Bank) with Vice Chairman Kevin Tracy (President, Bank of America RI), reflecting governance deeply intertwined with the regional banking community.

Name

The Business Development Company

Legal name

The Business Development Company

Website

https://bdcri.com

Company type

Private

Founded year

1953

Operating status

Operating

Headcount range

1–10 employees

Short description

The Business Development Company is a privately held, SBA-approved small business lender founded in 1953 in Providence, Rhode Island, providing term loans, SBA loans, and lines of credit ranging from $90,000 to $600,000 to established small businesses in Rhode Island, Southeastern Massachusetts, and Eastern Connecticut.

Ownership category

akta.pro rank

Product category

Small Business Lending

NAICS

Other Nondepository Credit Intermediation (52229), Credit Intermediation and Related Activities (522)

SIC

Miscellaneous Business Credit Institution (6159)

akta.pro primary industry

SME Term Loans & Growth Capital (FSAKAGAB)

akta.pro secondary industry

SBA/Government-Backed & Development Finance Loans (FSAKAGAI)

Keywords

• Small business lending
• SBA loans
• Commercial lending
• Mezzanine financing
• Small business financing

Headquarters

HQ city

Providence

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Marketing or Sales, Technology or R&D, Infrastructure

Revenue model

1. Small Business Lending: Provides term loans, lines of credit, SBA loans, and asset-based financing to established small businesses. Revenue generated from interest income on loans and upfront fees (underwriting fees of 1% of loan amount, legal fees of $3,000-$5,000, and potential appraisal fees). Loans range from $90,000 to $600,000 with 5-7 year repayment terms. Can structure interest-only periods for qualified borrowers.

Pricing tiers

Go-to-market motion1 record

Distribution channels4 records

Marketing channels7 records

Core offering

The Business Development Company is an alternative small business lender that provides term loans, SBA 7(a) and Express loans, and revolving lines of credit ranging from $90,000 to $600,000 to established, revenue-generating small businesses in Rhode Island, Southeastern Massachusetts, and Eastern Connecticut. The company fills the financing gap between senior bank debt and equity, often acting as a subordinate lender alongside a borrower's existing bank or participating in syndicated structures for larger needs. Revenue is generated primarily from interest income on loans and upfront underwriting (1%), legal ($3,000–$5,000), and appraisal fees.

Product overview

The Business Development Company offers a unified lending platform providing three core financing products: Term Loans (lump-sum financing for equipment, expansion, debt restructuring, and acquisitions with 5-7 year repayment terms and flexible structures including interest-only periods and staged funding), SBA Loans (government-guaranteed 7(a) and Express loans with 50-75% guarantees), and Lines of Credit (revolving credit based on accounts receivable and inventory for working capital). The company also provides educational resources including a White Paper on Cost of Capital analysis. These products are customized for each borrower's cash flow, collateral, and growth plans, with loan sizes ranging from $90,000 to $600,000 for established small businesses in Rhode Island, Southeastern Massachusetts, and Eastern Connecticut.

Differentiator

Problem solved

Functional benefit

Products and services

• Term Loans Lump sum loans of $90,000 to $600,000 for established small businesses to finance equipment purchases, growth capital, debt restructuring, acquisitions, and partner buyouts. Repaid monthly over 5-7 years using business operating cash flow, with fixed or floating interest rates, optional interest-only periods, and tiered staged funding available for qualified borrowers.
• SBA Loans Small Business Administration-guaranteed loans originated under SBA 7(a) and SBA Express programs. 50-75% of the loan amount is government-guaranteed, enabling longer repayment terms, lower down payments, and more flexible collateral options for SBA-eligible small businesses.

Quantifiable outcome

• Case studies show successful outcomes including five-fold growth for food company over 5 years, successful management buyouts, and expansion from 1 to 5 locations in 4 states for recreation business.
• +1 more outcomes

Named customers6 records

Segments3 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

Ten partnerships are on record, tiered core and support.

• U.S. Small Business Administration (SBA)coreStrategic or Co-development PartnerSBA-approved lender under the 7(a) and Express programs. BDCRI can facilitate SBA-guaranteed loans where 50-75% of the loan may be guaranteed by the U.S. government.
• Commerce Rhode IslandsupportStrategic or Co-development PartnerState economic development organization supporting business growth in Rhode Island.
• Greater Providence Chamber of CommercesupportStrategic or Co-development PartnerLocal chamber of commerce supporting business development and networking.
• Northern Rhode Island Chamber of CommercesupportStrategic or Co-development PartnerRegional chamber of commerce supporting business community.
• Newport County Chamber of CommercesupportStrategic or Co-development PartnerRegional chamber of commerce supporting Newport County businesses.
• Social Enterprise GreenhousesupportStrategic or Co-development PartnerNetwork of business and community leaders supporting social impact enterprises in Rhode Island, offering incubator and accelerator programs.
• Rhode Island Small Business Development CentersupportStrategic or Co-development PartnerProvides resources, connections, one-on-one support, and workshops to help Rhode Island entrepreneurs start and grow businesses.
• Slater FundsupportStrategic or Co-development PartnerRegional investment fund supporting small business development.
• Rhode Island Manufacturers Association (RIMA)supportStrategic or Co-development PartnerAssociation supporting manufacturing businesses in Rhode Island.
• RI Business Plan CompetitionsupportStrategic or Co-development PartnerBusiness plan competition supporting entrepreneurial development in Rhode Island.

Scale indicators2 records

Recent moves5 records

Expansion highlights5 records

Emerging players

• OnDeck (Enova): Online small business lender offering term loans and lines of credit to SMBs. Comparable ticket sizes and target borrower segment to BDCRI, though differentiated by a digital-only, automated underwriting model rather than BDCRI's relationship-driven approach.
• Funding Circle US: Online marketplace lender focused on term loans and lines of credit for small businesses. Comparable borrower profile (established, revenue-generating SMBs) and term-loan product to BDCRI, but operating as a technology-first marketplace rather than a regional relationship lender.
• Kapitus: Alternative SMB finance provider offering SBA loans, term loans, lines of credit, and working capital to established small businesses. Direct product overlap with BDCRI across SBA and non-SBA products, but national scale versus BDCRI's regional footprint.
• BlueVine: Fintech providing small business lines of credit and term loans using a digital underwriting platform. Overlaps with BDCRI on SMB lines of credit and short-term working capital needs, but competes via online speed and convenience rather than local relationships.

Direct peers

• Celtic Bank: Utah-based SBA preferred lender specializing in SBA 7(a) and SBA 504 loans for small businesses. Mirrors BDCRI's SBA-led, small-business lending focus and positions similarly as a non-traditional option for borrowers underserved by large commercial banks.
• Newtek Business Services: Alternative SMB finance platform and SBA preferred lender offering term loans, lines of credit, and working capital to small businesses. Directly comparable business model to BDCRI across SBA and non-SBA SMB lending, with broader product breadth and national reach.
• Accion Opportunity Fund: Mission-driven nonprofit small business lender providing loans and financial education to underserved SMBs. Highly comparable to BDCRI's community-development mission, focus on credit-invisible borrowers, and sub-$1M average ticket size.
• Coastal Enterprises Inc (CEI): Maine-based CDFI providing loans and business advisory services to small and emerging businesses in rural New England. Closely comparable as a regional, mission-oriented small business lender with a relationship-based underwriting model similar to BDCRI.
• Live Oak Bank: Publicly traded bank that grew to become one of the largest SBA 7(a) lenders in the U.S. Highly comparable to BDCRI as a direct small business / SBA lender targeting relationship-driven borrowers, though operating at much greater scale and with a national footprint.

Others

• Rhode Island Commerce / RI Small Business Development Center: State economic development agency and SBDC partner within BDCRI's network. Not a competitor but a referral and ecosystem partner that funnels prospective SMB borrowers into BDCRI's screening process.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat5 records

Key risks7 records

Key highlights7 records

Customer concentration

• Facebookfacebook.com/TheBusinessDevelopmentCompany
• LinkedInlinkedin.com/company/the-business-development-company-of-rhode-island

Revenue estimate

Valuation estimate

Number of profiles

Profiles7 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about The Business Development Company