Momentus Securities aims to deliver additional liquidity to mission-driven lenders on their guaranteed and unguaranteed interests of SBA 7(a) loans.
NEW YORK–(BUSINESS WIRE)–Momentus Securities — an investment bank with a social purpose — today announced that the U.S. Small Business Administration (SBA) has approved it as an SBA Pool Assembler in the 7(a) Loan Guarantee Program.
Under the Secondary Market Program, approved SBA Pool Assemblers are authorized to assemble eligible 7(a) loans and market Guaranteed Loan Pool Certificates (SBA Pools). In addition, SBA Pool Assemblers are granted authority to issue and market interest-only investments on these pools known as COOFs. SBA Pools carry the unconditional full faith and credit guarantee of the United States Government.
“This is an opportunity to provide enhanced secondary market liquidity to mission-driven lenders that primarily serve business owners working in underserved communities,” said Jaime Aldama, Momentus Securities’ Head of Capital Markets. “These pools offer institutional investors the opportunity to support and bolster America’s entrepreneurs who are committed to job creation and economic growth – especially women, veterans, people of color, and rural and low-to-moderate income communities.”
7(a) loans are the SBA’s primary business loan program for providing financial assistance to America’s small businesses. However, mission-based lenders often run into scale and liquidity limitations. They need to move loans off their balance sheets, creating more liquidity so that they can make more loans to help the communities they serve.
This work is just one way that Momentus Securities seeks to drive institutional capital to America’s small businesses and nonprofits — and to position “social impact” as a fully investable asset class for institutional investors. This approval by the SBA helps Momentus Securities connect with investors to facilitate these impactful transactions.
“In response to rising borrowing costs, we have seen renewed interest by community-centric lenders in secondary markets as an alternative way to secure capital,” said Tian Wu, Momentus Securities’ Head of Debt Capital Markets. “These lenders can sell their loans for immediate cash that is then used to issue further loans, amplifying their social impact. Momentus Securities is dedicated to helping these underserved lenders by diversifying the investor base for this asset class.”
About Momentus Securities LLC
Momentus Securities, a registered broker-dealer and FINRA member, offers a range of financial products and services to support its mission of connecting mainstream capital sources and impactful investment opportunities. These services include debt and equity capital raising, asset-backed and structured finance as well as corporate finance and advisory services, and will be offered across five key segments: Affordable Housing, Healthcare, Education, Small Businesses and Food. Momentus Securities seeks to bolster the mission-driven investing space by addressing the current scale and liquidity limitations in the sector that inhibit the deployment of institutional capital. Learn more at momentussecurities.com.
Momentus Securities is part of the Momentus Capital branded family of organizations, which also include, among other organizations, Capital Impact Partners (a nonprofit Community Development Financial Institution, or CDFI) and CDC Small Business Finance (a leading SBA Community Advantage Small Business Lending Company, or CA SBLC).
Contacts
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David Greisman
