Citi Announces Partnership with Minority-Owned Depository Institutions to Purchase Paycheck Protection Program Loans
May 20 2020 - 8:00AM
Business Wire
Part of Citi’s Ongoing Commitment to Expand
Networks and Facilitate the Inclusion of Community Banks and
Minority-Owned Depository Institutions
Citi today announced a partnership program with the National
Banking Association (NBA), where Citi has created a purchasing
facility that allows it to buy loans in the secondary market from
Minority-Owned Depository Institutions (MDIs) originated under the
Small Business Administration (SBA) Paycheck Protection Program
(PPP). Citi’s purchasing facility will assume up to $50 million in
SBA loans from MDIs, which serve urban and underserved
communities.
This is part of Citi’s ongoing commitment to expand networks and
facilitate the inclusion of community banks and MDIs to better
serve diverse communities. Citi was the first bank to help launch
and pilot the US Department of Treasury’s Financial Agent
Mentor-Protégé Program that pairs designated financial agents with
MDIs.
NBA Member Banks that are MDIs and have SBA PPP lender approval
(Member Banks) are able to take part in this purchasing program
with Citi. This partnership will provide Member Banks with capital
by enabling them to sell loans originated under the PPP to Citi in
the secondary market. This asset purchase will move the loans off
the MDI’s balance sheet and over to Citi. Servicing of the loans
will remain with the originator banks and MDIs participating in the
program have the potential to retain 100% of the fees earned
through the origination of the loan through the SBA.
As part of the program, Citi will purchase up to $50 million of
existing SBA approved PPP loans from MDI Member Banks, including
Unity National Bank, with the expectation that other MDI Member
Banks will participate.
“Our country needs banks of all sizes to serve businesses of all
sizes and from all communities. Citi actively partners with
minority-owned banks to support their vital efforts to serve their
diverse client base, and we applaud the work they did to ensure
that the benefits of the PPP program reached minority-owned
businesses,” said Michael Corbat, CEO of Citi.
“We are pleased to participate in this asset sale with Citi.
Unity was one of the first MDIs to solidify terms on this important
initiative as we have witnessed firsthand how this pandemic has
been felt most acutely by small business owners in the communities
where we operate. By moving these loans off our balance sheet, we
are able to redeploy capital into further assisting our customers
and supporting our local economy,” said Laurie Vignaud, CEO of
Unity National Bank.
Citi also recently announced its decision to donate its net
profits earned through its own participation in the PPP to the Citi
Foundation. The Citi Foundation will use the funds to expand its
support of Community Development Financial Institutions delivering
recovery capital to underserved communities. This new effort
complements the Foundation’s COVID-19 U.S. Small Business Relief
Program, which it launched earlier this month with an initial $7.5
million in funding to support efforts by Community Development
Financial Institutions to serve small, diverse entrepreneurs.
Citi, the leading global bank, has approximately 200 million
customer accounts and does business in more than 160 countries and
jurisdictions. Citi provides consumers, corporations, governments
and institutions with a broad range of financial products and
services, including consumer banking and credit, corporate and
investment banking, securities brokerage, transaction services, and
wealth management.
Additional information may be found at www.citigroup.com |
Twitter: @Citi | YouTube: www.youtube.com/citi | Blog:
http://blog.citigroup.com | Facebook: www.facebook.com/citi |
LinkedIn: www.linkedin.com/company/citi
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version on businesswire.com: https://www.businesswire.com/news/home/20200520005171/en/
Danielle Romero Apsilos, (212) 816 2264
danielle.romeroapsilos@citi.com
Sophia Anthony, (212) 816 7140 sophia.anthony@citi.com
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