1.Investments 

The Company primarily invests in private US companies. The Company focuses on three strategies. First, the Company provides bridge loans to private companies that have been conditionally approved for government-guaranteed loans by an approved lender under Agency programs, but are waiting for formal approval from the government agency.

Second, the Company focuses on acquiring BDC-qualified loans to warehouse for resale. This is done by both acquiring loans directly and by investing in firms that acquire and hold loans for resale. The primary loan-type focus is government-guaranteed loans or participating interests in government-guaranteed loans.

Finally, the Company may provide debt or equity to private companies to fund growth or acquisitions.

All the participating interest loans are 100% guaranteed by the US Government. As such, these participating interest loans are typically priced and traded similarly to US Government Agency paper. All these loans are held by the subsidiary CBT SF LLC.

For the bridge loans, we expect to be refinanced out of the position once the US Government approves the permanent loan application submitted by third-party, unrelated banks.

Finally, we have made one traditional private loan to fund a recapitalization.

Currently, all investments are to U.S.-domiciled companies.

The Company anticipates most of its debt investments will not be rated, and that, if rated, most investments (except for loans guaranteed by the US Government) would be classified as “junk bonds / high yield bonds” as compared to “investment grade.” That being said, the Company believes its investments that are guaranteed 100% by the US Government should be treated as government securities.

Investment-grade bonds are bonds rated at a level that signifies a relatively low risk of default. Credit rating agencies like Moody's, Standard & Poor's, and Fitch assign ratings to these bonds. Bonds rated at or above 'BBB-' (or its equivalent, depending on the rating agency) are considered investment grade. Junk bonds (high-yield bonds) are bonds rated below 'BBB-'. These ratings indicate a higher risk of default or financial instability of the issuing entity. The term "junk" does not denote the quality of the bond per se but rather signifies a higher risk and, consequently, a higher potential return. The higher yield serves as compensation for investors willing to take on greater risk. Junk bonds are often utilized by companies with less established credit histories or those undergoing financial restructuring, providing them with necessary capital at the cost of higher interest rates.