City First Bank, Capital Impact Partners, and
CDC Small Business Finance team up to support low-to-moderate
income areas in California; Washington, D.C.; Maryland; and
Virginia with flexible owner-occupied commercial real estate
options via their Small Business Administration 504 First Mortgage
program.
The pathway for underserved small businesses owners to obtain
affordable owner-occupied commercial real estate mortgages just got
easier — thanks to a new loan product meant to help small
businesses in low-to-moderate income areas. By working in these
disinvested communities, this loan product will also help
entrepreneurs of color and female entrepreneurs.
This effort reinforces the shared vision of City First Bank,
Capital Impact Partners, and CDC Small Business Finance to address
systemic barriers to accessing capital by providing Small Business
Administration (“SBA”) 504 First Mortgage loans.
“This is a creative, flexible loan product with competitive
rates that is tailored to the needs of entrepreneurs who live in or
serve disinvested communities — or who otherwise have been left out
due to historical lending practices,” said Ellis Carr, President
and CEO of Capital Impact Partners and CDC Small Business Finance,
each of which is part of the Momentus Capital branded family of
organizations.
This mission-focused SBA 504 First Mortgage partnership is
designed to intentionally attract and invest private capital into
the low-income neighborhoods and/or minority-owned businesses in
the overlapping markets of City First Bank and Momentus Capital in
California, Maryland, Virginia, and Washington, D.C.
“City First Bank is thrilled to partner with Momentus Capital
and leverage its track record for originating and servicing SBA 504
First Mortgage loans that can benefit our small business
customers,” said Brian Argrett, President and CEO of City First
Bank, National Association.
“With this partnership, it is our aspiration to provide up to
$50 million in initial capital direct from City First Bank, which
will be leveraged up to $100 million in capital through the SBA’s
504 First Mortgage program to provide financing for minority small
business owners and entrepreneurs seeking to grow their businesses
in low- and moderate-income communities,” said Argrett.
“Partnerships with other value-aligned institutions are imperative
in addressing the racial wealth gap and absolutely fundamental to
City First’s mission. Through our partnership, City First and
Momentus Capital will be able to collectively expand access to
financing for owner-occupied commercial real estate for
minority-owned businesses located in our current markets in a way
that multiplies our effectiveness and reach.”
Through this partnership, the two organizations have developed a
new SBA 504 First mortgage loan product that builds on the
longstanding effort by Momentus Capital to offer a variety of SBA
first mortgages on a wholesale basis throughout the United States.
Wholesale SBA 504 First Mortgage loans are marketed to financial
institutions such as regional banks, community development
financial institutions (CDFIs), certified development companies,
non-bank lenders, and other financial institutions that have a
local presence and relationships with borrowers in the community —
but who are not able to finance the borrower for a variety of
reasons. Those institutions can instead refer those borrowers to
this more flexible loan product offered by Momentus Capital and
City First Bank, who may be able to provide financing in
coordination with the SBA.
“This partnership with Momentus Capital enables us to provide
loans to small business customers with terms that are more
affordable than typical commercial mortgage loans. The 90%
financing, as opposed to conventional financing, enables business
owners to retain working capital needed to run and ramp up their
businesses,” said John Tellenbach, Executive Vice President, West
Commercial Regional Executive for City First Bank.
One of the first loans offered under this partnership helped The
Little Butterflies — a child care, daycare and preschool in
Pleasanton, California — expand its operations by acquiring a
nearby daycare practice’s building. With the expansion, this
woman-owned small business will be able to retain all 10 of the
existing daycare’s employees, and create 21 new full-time jobs
serving its rapidly growing clientele.
Another recently funded project helped beloved authentic Mexican
restaurant Kalaveras open an additional location in Corona,
California. The financing allowed this Hispanic-owned small
business to retain the working capital it needed to ramp up
operations; the owners anticipate creating 20 new jobs.
This new product is being offered through Momentus Direct
Capital. Loans originated pursuant to an SBA 504 First Mortgage
program are designed to preserve cash and cash flow for small
businesses through attractive terms, such as low down payments (at
10 percent); 10-year, below-market, fixed interest rates; and a
minimum loan amount of $500,000. These advantageous terms for
borrowers are made possible by support from the SBA. Loan proceeds
may be used to purchase, refinance, or make improvements to
owner-occupied commercial real estate.
“I’m excited about this opportunity to develop and deliver a
product for these small business owners,” said Ken Rosenthal,
Senior Advisor of the Wholesale SBA 504 First Mortgage program for
Momentus Capital. Rosenthal is the National SBA 504 Lender of the
Year and has more than three decades of experience marketing
wholesale first mortgages to lending institutions around the
country. “With City First, we are able to use our wholesale first
mortgage product to help businesses that have never had the same
access to capital as others do, and to help these business owners
and their communities.”
For more information, visit momentusdirectcapital.com.
More About Us
Capital Impact Partners, CDC Small Business Finance, and City
First Bank are Black-led and have major presences in California and
the greater metropolitan area in and around Washington, D.C. In
2021, City First Bank merged with Broadway Federal Bank, f.s.b. to
become the largest Black-led Minority Depository Institution (MDI)
in the nation, with approximately $1.2 billion in assets as of
3/31/23.
About Momentus Capital
The Momentus Capital branded family of organizations refers to
the combined operations of Capital Impact Partners, CDC Small
Business Finance, Momentus Direct Capital, Momentus Securities, and
Ventures Lending Technologies. While each organization under the
Momentus Capital brand still operates as a separate entity, their
clients will now have access to more resources and products.
The Momentus Capital branded family of organizations is
transforming how capital and investments flow into communities to
provide people access to the capital and opportunities they
deserve. We are working to reinvent traditional financial systems
that have failed to address systemic issues of inequality, economic
empowerment, and the widening racial wealth gap by offering a
continuum of financial, knowledge, and social capital to help local
leaders build inclusive and equitable communities and create
generational wealth. This includes a comprehensive package of loan
products, impact investment opportunities, training and business
advising programs, and technology services that advance locally-led
solutions.
Leveraging 80 years of combined experience, nearly $3 billion in
assets, and strong community engagement, we have delivered $23
billion in financing, created and preserved 250,000 jobs, and
served 12,000 small businesses and five million people across their
history.
With headquarters in Arlington, Virginia, and San Diego,
California, Momentus Capital operates nationally with a focus on
larger urban areas and cities in Arizona, California, Michigan,
Nevada, New York, Texas, and the Washington metro area.
Learn more at momentuscap.org.
About City First Bank, N.A.
City First Bank, National Association, a wholly owned subsidiary
of Broadway Financial Corporation (Nasdaq-CM: BYFC), collectively
referred to as CityFirstBroadway, is a leading provider of
financial products and services to economically underserved urban
communities.
Backed by 75 years of experience and operations in Washington,
D.C. and Los Angeles, California, City First Bank offers a variety
of commercial real estate loan products, services, and depository
accounts that support investments in affordable housing, small
businesses, and nonprofit community facilities located within
low-to-moderate income urban neighborhoods.
City First Bank, National Association is part of the City First
branded family of community development finance companies, which
also includes City First Enterprises, Homes by CFE, and City First
Foundation, delivering a robust lending and deposit platform, plus
triple-bottom line results: people, planet and profits.
The Bank is a Community Development Financial Institution
(CDFI), Minority Depository Institution (MDI), Certified B Corp, as
well as a member of the Global Alliance of Banking on Values.
Learn more at cityfirstbank.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20231003177821/en/
Investor Relations Brenda J. Battey, Chief Financial Officer,
(323) 556-3264 Investor.relations@cityfirstbroadway.com
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