New York Life’s Impact Investment Strategy Commits $50 Million to Momentus Capital to Support Flexible Small Business Loans for Underserved and Undercapitalized Communities

New York Life | September 12, 2023

Innovative program offers flexible loan terms to deliver capital to an expanded pool of small business owners from underserved and undercapitalized communities who might not otherwise have access to credit

NEW YORK, NY; ARLINGTON, VA; WASHINGTON, DC; September 12, 2023 — New York Life and Momentus Capital today announced a commitment of $50 million by New York Life’s impact investment strategy to provide small business loans with flexible terms that are specifically intended to support entrepreneurs from underserved and undercapitalized communities.

This innovative program, the first of its kind from within the life insurance space, is designed to deliver an incremental source of capital to an expanded pool of business owners who might not otherwise have access to institutional markets. Featuring increased flexibility from a loan underwriting perspective, the program should expand small business financing opportunities for borrowers who often are not otherwise able to access this kind of capital.

“Since its inception in April 2021, our impact investment strategy has focused on helping address the racial wealth gap in America and expanding economic opportunity more broadly,” said Martin King, head of impact investing at New York Life. “Considering Momentus Capital’s impressive track record of innovation and impact, our partnership introduces another unique opportunity to support diverse small business owners and is one that has strong potential to scale further over time.”

Momentus Capital was selected by New York Life to manage the program and to originate and service Small Business Administration (SBA) 504 Wholesale First Mortgage loans throughout the United States.

“We are grateful to New York Life for recognizing how important it is to support small businesses and communities through lending products that expand access to affordable credit,” said said Ellis Carr, President and CEO of Capital Deployment for Capital Impact Partners and CDC Small Business Finance, each of which is part of the Momentus Capital branded family of organizations. The Momentus Capital branded family of organizations also includes Momentus Direct Capital, Momentus Securities, and Ventures Lending Technologies, among others. Momentus Capital aims to reinvent traditional financial systems that have failed to address systemic issues of inequality, economic empowerment, and the widening racial wealth gap. “This program will particularly help entrepreneurs from disinvested communities, who are often denied traditional financing.”

“Our goal is to make capital more accessible,” said Ken Rosenthal, Senior Advisor of the Wholesale SBA 504 First Mortgage program for Momentus Capital. Rosenthal is the National SBA 504 Lender of the Year and has more than three decades of experience marketing wholesale first mortgages to lending institutions around the country. “Although we are not exclusively serving disinvested communities with these loans, we hope that more entrepreneurs from these communities will now be able to receive the resources they need to grow their businesses.”

This new product is being offered through Momentus Direct Capital. For more information, visit momentusdirectcapital.com.

New York Life’s impact investment strategy aims to develop, alongside industry-leading partners, broad solutions and investment structures that will continue to deliver both investment returns and inclusive economic outcomes linked to job growth, health and wellness, and personal and household advancement.

About New York Life

New York Life Insurance Company (www.newyorklife.com), a Fortune 100 company founded in 1845, is the largest¹ mutual life insurance company in the United States and one of the largest life insurers in the world. Headquartered in New York City, New York Life’s family of companies offers life insurance, retirement income, investments, and long-term care insurance. New York Life has the highest financial strength ratings currently awarded to any U.S. life insurer from all four of the major credit rating agencies.²

¹Based on revenue as reported by “Fortune 500 ranked within Industries, Insurance: Life, Health (Mutual),” Fortune magazine, 6/5/2023. For methodology, please see Fortune. 

²Individual independent rating agency commentary as of 10/18/2022: A.M. Best (A++), Fitch (AAA), Moody’s Investors Service (Aaa), Standard & Poor’s (AA+).

About Momentus Capital

The Momentus Capital branded family of organizations refers to the combined operations of Capital Impact Partners, CDC Small Business Finance, Momentus Direct Capital, Momentus Securities, and Ventures Lending Technologies. While each organization under the Momentus Capital brand still operates as a separate entity, their clients will now have access to more resources and products.

The Momentus Capital branded family of organizations is transforming how capital and investments flow into communities to provide people access to the capital and opportunities they deserve. We are working to reinvent traditional financial systems that have failed to address systemic issues of inequality, economic empowerment, and the widening racial wealth gap by offering a continuum of financial, knowledge, and social capital to help local leaders build inclusive and equitable communities and create generational wealth. This includes a comprehensive package of loan products, impact investment opportunities, training and business advising programs, and technology services that advance locally-led solutions.

Leveraging 80 years of combined experience, nearly $3 billion in assets, and strong community engagement, we have delivered $23 billion in financing, created and preserved 250,000 jobs, and served 12,000 small businesses and five million people across their history.

With headquarters in Arlington, Virginia, and San Diego, California, Momentus Capital operates nationally with a focus on larger urban areas and cities in Arizona, California, Michigan, Nevada, New York, Texas, and the Washington metro area.

Media contact, Momentus Capital: David Greisman, dgreisman@capitalimpact.org

Learn more at momentuscap.org.