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.
About Flagstar
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.
For more information contact:
Susan Bergesen
Flagstar Bank
(248) 312-6237
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SOURCE Flagstar Bancorp, Inc.