TROY, Mich., Sept. 27, 2017 /PRNewswire/ -- Flagstar Bank today announced the first disbursement—$500,000—of its $2.5 million investment in small business development in Pontiac. This small business initiative is part of Flagstar's five-year, $10 million commitment to help revitalize the city.
"We're happy to have partnered with Flagstar to bring this $10 million commitment to Pontiac," said Pontiac Mayor Deirdre Waterman. "Small businesses are the backbone of any economic revitalization, and this funding from Flagstar gives a welcome boost to our community."
Flagstar's initial disbursement of $500,000 will be leveraged through a partnership with CEED Lending, a Small Business Administration lender. Although the program will offer direct grants and loans, most of the disbursements are expected to be a combination of SBA loans and Flagstar grants to achieve maximum leverage. By blending grants with loans, Flagstar is able to add collateral and security to loan requests, thus making the loans more creditworthy, providing more capital to borrowers, and lowering the repayment amount.
"This kind of funding can be a lifeline for struggling businesses that need a little help to thrive," said Beverly Meek, CRA director for Flagstar. "One small business in Pontiac has already been approved for a loan/grant combination in the pilot phase, and another is awaiting CEED loan approval."
Meek said funding also will be used to support manufacturing in Pontiac, non-SBA loans, and grant opportunities identified by Pontiac Main Street Advisory Council.
"Everything we're doing, we're doing with input from the community," Meek said. "It was the community who told us small businesses—especially micro-businesses—needed grant money to help them qualify for SBA loans. Zero percent loans and grants was what we heard from the community.
"Another thing the community wanted was a one-stop website where small businesses could find everything they needed to start and do business in Pontiac. And Flagstar responded with a $10,000 grant to build a web portal for the city."
CEED Lending, an initiative of the Great Lakes Women's Business Council, provides small business loans to start-up and existing enterprises in nine counties in Southeast Michigan. CEED is the lender for the SBA loans associated with the program.
"The partnership with Flagstar is a great opportunity to move the needle on small business lending in Pontiac," said Michelle Richards, executive director of CEED Lending. "We're looking for good things to happen in Pontiac with CEED's expertise in SBA lending enhanced by small business grants from Flagstar."
For more information or to obtain an application for Pontiac loans and grants, visit CEED's website.
Flagstar Bancorp, Inc. (NYSE: FBC) is a $16.0 billion savings and loan holding company headquartered in Troy, Mich. Flagstar Bank, FSB, provides commercial, small business, and consumer banking services through 99 branches in the state. It also provides home loans through a wholesale network of brokers and correspondents in all 50 states, as well as 85 retail locations in 26 states, representing the combined retail branches of Flagstar and Opes Advisors mortgage division. Flagstar is a leading national originator and servicer of mortgage loans, handling payments and record keeping for $87 billion of home loans representing 402,000 borrowers. For more information, please visit flagstar.com.
About CEED Lending
CEED Lending is an initiative of the Great Lakes Women's Business Council, a 33-year old nonprofit organization committed to supporting women, minority-owned and other small businesses in southeastern Michigan. Loans up to $ 50,000 are available to businesses in Wayne, Oakland, Macomb, Monroe, Washtenaw, Jackson, Hillsdale, Lenawee and Livingston counties. More than $ 6 million in microloans have been made creating over 1,700 jobs and retaining more. For more information, please visit ceedlending.org.
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SOURCE Flagstar Bancorp, Inc.