Top Black-Led Financial Organizations to Provide Up To $100 Million in Mission-Focused Lending to Underserved Small Business Owners - Seite 2

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.