U.S. Bridge Loan Fund Trust

Form N-PORT is an updated portfolio reporting form adopted by the SEC in October 2016 to modernize portfolio reporting, and disclosures by Registered Investment Companies (RICs) and ETFs organized as UITs, but excluding Money Market Funds (MMF) and Small Business Investment Companies (SBICs).

Form N-PORT is a portfolio reporting form requiring registered funds to provide portfolio-wide and position-level holdings every month reportable to the SEC. The form will require data on the fund's investments, including data related to the pricing of portfolio securities.

The total USBLF U.S. withholding tax held in 2021 was less than USD 900. RICs are a very efficient tax structure for foreign investors.

US BLFT represents a single investor in the "U.S. based private credit fund" without needing a more complex off-shore or blocker fund structure.  See the US BLF Investment Plan chart above.

Unlike a C-corporation, a RIC can deduct dividends distributed to its shareholders. A RIC is, therefore, not subject to an entity-level tax on net investment income and net capital gain if it distributes these amounts to its shareholders within certain time limits.

RIC shareholders generally recognize ordinary income on distributions received from a RIC unless the distribution is eligible for the reduced rate for qualified dividends, is a designated capital gain dividend, is an exempt-interest dividend, or is a return of capital. Designated capital gain dividends are taxable to RIC shareholders as a long-term capital gain.*

To qualify as a regulated investment company, the company needs to register itself as an investment company with the Securities and Exchange Commission under the Investments Company Act of 1940. Only the registered investment companies meeting specific criteria are eligible to qualify as regulated investment companies. Companies that earn at least 90% of their income from capital gains, interest or dividends derived from the investment are considered qualified as regulated investment companies. These companies are obliged to distribute at least 90% of their net investment income to their shareholders as interest, dividends or capital gains.

The Internal Revenue Service may collect an excise tax from the company if they fail to distribute at least 90% of its net investment income. Also, to qualify as a regulated investment company, a company must have a minimum of 50% of its asset in cash, cash equivalents, or securities. The regulated investment companies are not allowed to invest more than 25% of their total assets in securities offered by a single issuer other than the government and regulated investment companies.*

Regulated investment companies are regulated by the Securities and Exchange Commission (SEC) and the Investment Company Act of 1940 and have the primary business purpose of investing the owners' assets.

Any company, including mutual fund or exchange-traded fund, real estate investment trust, or a unit investment trust which issues security and is engaged in the security business, may qualify as a regulated investment company if they meet specific requirements

The U.S.-based private credit fund that U.S. Bridge Loan Fund Trust invests in is a Regulated Investment Company (RIC), providing excellent foreign investment tax benefits.

The U.S. private credit fund (RIC) has regulatory oversight by the SEC, which includes the filing requirements of the Manager of the Form N-PORT on the SEC website.

Investors can view the details of loans issued by the "U.S.-based private credit fund" online.

Details include the corporate borrowers' names and the loan terms, including the loan amount, interest and origination fees charged.  See more Form N-PORT details below.  Please contact Steepe & Co. Ltd. for the US BLFT offering documents and for further information on the U.S. manager and fund.

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The Trust provides a unique opportunity for investors in Canada to earn income by participating in funding a portfolio consisting of a wide range of private credit-oriented or other cash flow producing investments, including corporate loans and credit facilities, equipment leasing transactions, real estate backed loans, corporate and consumer receivables, and other specialty finance opportunities or income producing assets in the U.S., which have been sourced and vetted by the “U.S. based private credit fund”, manager.

The investment strategy of USBLF is to preserve the invested capital and to deliver current income on a quarterly basis for USBLF investors. In this regard, the Trust has retained the Manager to execute its investment strategy. Michael Steepe, the principal of the Manager, is an experienced investment professional with pooled loan funds and U.S. based credit funds.

The net proceeds from the Offering will initially be invested in two ways, (i) primarily by purchasing interests in the “U.S. based private credit fund*”, and (ii) to a lesser extent, if at all, direct co-investing with the “U.S. private credit fund”. (see depiction of initial investment plan for proceeds in the USBLF Offering Memorandum). It is anticipated that most of the net proceeds of the Offering will initially be invested in the purchase of units of the “U.S. based private credit fund”, and that the allocation of net proceeds of the Offering for direct co-investment with the “U.S. based private credit fund”, will increase over time as opportunities arise.

*The use of the phrase, “U.S. based private credit fund”, explained. The U.S. Securities And Exchange Commission,(SEC), prevents the U.S. based Manager of the, “U.S. based private credit fund”, from publicly displaying the name or identity of the fund.