Press Release: From Leasing to Owning: New “Impower” Loan Product Helps Previously Denied Small Businesses Grow With No Minimum Credit Score

August 30, 2022

CDC Small Business Finance expands Impower to Arizona, California, Florida, Georgia, Maryland, New York, Texas, Virginia, and Washington, D.C.

August 30, 2022 (San Diego, CA) – There is a new, first-of-its-kind alternative for small business entrepreneurs who want to go from leasing to owning but do not qualify for the traditional Small Business Administration (504) loan.

CDC Small Business Finance – the nation’s leading mission-based small business lender – is proud to launch the expansion of its Impower loans, a responsible and affordable way to purchase commercial real estate – with no minimum credit score requirement.

This unique loan program is now available in Arizona, California, Florida, Georgia, Maryland, New York, Texas, Virginia, and Washington, D.C.

An estimated 8,000 small business owners are turned down annually for commercial real estate financing sought through traditional sources. Once denied traditional financing, approximately 50% – or 4,000 small businesses – turn to predatory hard money and subprime loans, which often lead to disastrous economic outcomes where small businesses cannot keep pace with astronomical interest rates.

“There needs to be another way forward for small business owners,” said Raymond Guthrie, head of capital deployment for the Momentus Capital family of companies, which includes CDC Small Business Finance, Capital Impact Partners, and Ventures Lending Technologies. “We need to look past the traditional, outdated approaches that have prevented so many small business entrepreneurs, especially entrepreneurs of color, from realizing their dreams.”

CDC Small Business Finance specifically designed Impower to help entrepreneurs – especially entrepreneurs of color – build wealth, create jobs, and stay in the communities they serve:

  • Impower was created for those who do not qualify for traditional 504 financing.
  • There is no minimum credit score requirement. Credit scores only tell part of a story; instead, Impower loans look holistically at a borrower’s credit – at what is in the credit report, rather than basing a decision on the credit score.
  • Impower offers up to 95% financing, so that business owners can retain their working capital to help them grow.
  • Impower loans have low, fixed-interest rates.
  • These loans are for entrepreneurs in several target demographics, including businesses in census-designated low- to moderate-income communities.

“Traditional financial industry products and policies have reinforced racial inequality. Impower is more equitable and more inclusive,” Guthrie added. “For entrepreneurs who think they may have hit a dead end, we’re able to get them back on the road toward the dreams they envisioned.”

Impower loans do more than help businesses grow. They are focused on supporting small businesses in low- and moderate-income communities, improving economic opportunities in the surrounding community and creating jobs.

This loan is part of a concentrated effort from the Momentus Capital family of companies to provide a continuum of financial, knowledge, and social capital designed to uplift historically disinvested communities and keep money spent in a community, in that community. That’s because $68 of every $100 spent on a small business stays in that local community, compared to just $43 out of every $100 spent at a non-local business.

Once Turned Away, Now Tripling Revenue: Pablo Quintero’s Impower Success Story

When a large national bank denied Pablo Quintero’s request for a traditional 504 SBA loan, he turned to CDC Small Business Finance to help purchase a new building for his expanding business, Clean Initiative.

Using an Impower loan, this Colombian entrepreneur acquired a warehouse space — in a designated low- to- moderate income area —  and is now able to bring solar power and other sustainable energy solutions to even more residents across California.

The new space allowed Pablo to procure larger amounts of product inventory at a volume discount and therefore service larger contracts. As a result, projected revenue for Clean Initiative is up 300% and the company is on track to hire more than 20 new employees.

“With Pablo, we saw a business that was just outside qualifying for a traditional 504 SBA loan, and it was clear that our Impower loan product would help him and his business step up to the next level,” said LaKisha Gant, senior vice president of commercial real estate lending at CDC Small Business Finance.

“It was great that we were able to find a loan that worked for everyone involved,” Gant added. “Seeing his growth really highlights the importance of offering these loans and helping small businesses invest in themselves and their communities.”

Read more about Pablo’s story.

How Small Business Owners Can Apply for Impower

Impower provides commercial real estate loans, ranging from $250,000 to $4 million, for those who don’t qualify for standard 504 financing. For more information, please visit cdcloans.com/impower.

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.

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.

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