Press Release: CDC Small Business Finance Earns #1 Spot as Top SBA 504 and Community Advantage Lender Nationwide
The mission-driven lender aided small businesses with $630 million in 504 loans and Community Advantage loans in Fiscal Year 2022.
October 10, 2022 (San Diego, CA) – CDC Small Business Finance, long considered one of the nation’s leading mission-driven lenders, has finished Fiscal Year 2022 as the foremost SBA 504 and Community Advantage lender in the United States.
“As always, we lead with our values and put our borrowers first. These results are proof that working in and with communities can put us on top. Every dollar we lend and every loan we make has a tangible impact on the life of a business owner pursuing their dream,” said Ellis Carr, president and CEO of the Momentus Capital family of organizations, which includes CDC Small Business Finance, Capital Impact Partners, and Ventures Lending Technologies. “These are great achievements that speak to our dedication to our borrowers, the businesses they run, and the communities they serve.”
In the federal fiscal year running from October 2021 through September 2022, CDC Small Business Finance approved $592,271,000 in SBA 504 loans, which is $5.6 million more than the next SBA lender.
With 428 approved SBA 504 loans, this meant an average of more than $1.383 million per loan.
The SBA 504 commercial real estate loan is often the preferred financing product for small business owners looking to purchase real estate for their business. Entrepreneurs can obtain long-term, fixed-rate financing for a variety of projects. Whether a business owner is buying a warehouse to help expand their business or looking to shift from leasing to ownership, the 504 loan is a valuable option and smart addition to their business strategy.
During the same time period, CDC Small Business Finance approved $37,561,700 in Community Advantage loans, far surpassing all other lenders nationwide by nearly six times.
With 253 approved Community Advantage loans, this meant an average of more than $148,000 per loan.
The U.S. Small Business Administration’s Community Advantage loan program is a key tool that prioritizes equitable access to capital for borrowers with low-to-moderate incomes and those from disinvested communities.
Community Advantage makes credit more accessible to promising small businesses who have not been able to obtain traditional financing. The program is a tool for advancing racial equity: Community Advantage lenders lend to Black-owned businesses at double the rate of traditional financial institutions. For Hispanic-owned small businesses, the rate is nearly triple that of traditional financial institutions.
CDC Small Business Finance also earned the top spot on the state level in California and Arizona, where it was #1 in the number of loans approved, combined, for 504 and Community Advantage loans, with 513 loans in California totaling $505,789,100 and 99 loans in Arizona totaling $95,034,500.
“These achievements are all the more impressive because our colleagues made them happen during a busy year of transition at Momentus,” said Mr. Carr. “This shows the SBA, the rest of the industry, and — most importantly — our borrowers that we remain committed to small businesses and the positive change they can drive.”
About Momentus Capital
Momentus Capital is transforming how capital and investments flow into communities to provide people access to the capital and opportunities they deserve.
Through our family of mission-driven organizations including Capital Impact Partners, CDC Small Business Finance, and Ventures Lending Technologies, 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.
Each organization under the Momentus Capital brand will continue operating as a separate entity committed to serving its key market and clients, albeit with additional resources and product offerings.
We offer 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, a portfolio of nearly $3 billion, and strong community engagement, the family of companies has delivered more than $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, Michigan, Nevada, New York, Texas, and Washington, D.C.
Learn more at momentuscap.org.
About CDC Small Business Finance:
CDC Small Business Finance is transforming how capital and investments flow into communities to provide people access to the capital and opportunities they deserve. The nation’s leading mission-based small business lender CDC delivers small business and commercial real estate loans paired with small business owner assistance to bolster entrepreneurship, economic development, and job creation.
CDC offers numerous financing products including the Small Business Administration (SBA) 504 commercial real estate loans; SBA Community Advantage working capital loans; and the SBA Microloan. We also offer non-SBA products to provide more equitable access to credit for those who are unable to qualify for traditional financing. CDC also provides free business advising to support both potential borrowers to get loan-ready as well as to help existing small business borrowers grow and expand their business.
CDC is now part of the Momentus Capital family of organizations, including Capital Impact Partners and Ventures Lending Technologies. Together, we offer 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.
Since 1978, CDC has provided more than $21.3 billion in funding to 12,000 borrowers and helped create and preserve over 214,000 jobs.
Learn more at cdcloans.com and momentuscap.org
Media Contact
David Greisman
Media Relations Manager, Momentus Capital
dgreisman@capitalimpact.org