June 9, 2016
Liberty SBF Secures $75 Million in B Round Capital Raise, Expands Credit Facility Commitments
Includes Increase to Credit Facility Led By Capital One Bank; Company Meets Surging Need From Small Business Owners For Commercial Property Financing
Liberty SBF (www.LibertySBF.com), the experts in commercial real estate lending, announced today that it has added $75MM to its balance sheet after closing on a Series B round of equity funding led by Frankel & Associates, Exigent Capital, and Mainline Investment Partners. In conjunction with the equity raise Liberty SBF has expanded credit facilities with Capital One Bank.
Liberty SBF has participated as a national wholesale lender in the SBA 504 market since 2011, providing much needed liquidity to small business borrowers at a time when many banks and lenders left the market or significantly reduced their participation in national 504 lending. Liberty SBF estimates the potential market for SBA 504 loans originated through the wholesale channel to be $2B annually.
Liberty SBF will revitalize and transform the 504 market, filling an exceedingly large void in secondary market lending with its National First Lien SBA 504 Wholesale Program. Liberty SBF will partner with approved banks, non-bank lenders and other SBA loan intermediaries to originate 504 loans across the country and can pay up to 4 points of premium to its partners. Liberty SBF also services the loans in its portfolio and will introduce a third party loan servicing platform to banks and credit unions later this year.
“Liberty SBF expects to originate over $200MM in 504 loans in the next 12 months on asset types that range from industrial and self-storage facilities to hotels among others,” said Alex Cohen CEO of Liberty SBF. “By increasing our already substantial nationwide network we will help serve more small businesses seeking commercial property financing.”
Congress recently passed legislation to permanently reinstate the SBA 504 Refinance Program. When this program comes online in 2016, it will help to refinance some of the almost $1 trillion in commercial mortgage debt predicted to mature over the next three years, exponentially expanding the market for 504 loans. Liberty SBF plans to capture a significant volume of the refinance wave through its National First Lien SBA 504 Wholesale Program.
“We’re excited to invest directly in a platform that is transforming the commercial real estate lending business,” said Elie Brender, Chief Investment Officer at Exigent Alternative Capital. “Liberty SBF’s lending focus and existing portfolio presents a compelling opportunity that is consistent with our investment strategy ”
About Liberty SBF
Liberty SBF has built one of the most innovative commercial lending and servicing platforms in the SBA industry. Liberty provides short term and permanent financing for owner occupied commercial real estate and provides third party servicing and capital markets services to its bank and credit union partners. Liberty SBF is financed by some of the nation’s leading private equity firms, including EBF & Associates, Exigent Alternative Capital, Napier Park Global Capital, and Mainline Investment Partners. For more information about Liberty SBF and its lending, servicing and investment platforms, please visit www.LibertySBF.com.