The Change Company, America’s Community Development Financial Institution (CDFI), announced today the closing of a private placement (the “Offering”) of $75 million aggregate principal amount of its 4.75% Senior Notes due 2031 (the “Notes”). Investors in the Notes include over 35 socially responsible insurance companies, asset managers and banks seeking to participate in impactful ESG investment opportunities that provide access to capital in support of homeownership for Black, Latino, and Low-Income borrowers and communities. The Change Company and its affiliates have successfully raised over $300 million in new Sr. Debt and Perpetual Preferred Equity over past twelve months in support of its community development mission.

In 2020, The Change Company originated over 20,000 home loans totaling more than $7 billion – approximately 70% of which were to Black, Latino, and other underbanked borrowers. For the year-to-date ended September 15, 2021, the average home loan to our underbanked borrowers was for approximately $340,000, with an interest rate of 3.21%, and an LTV of 76%. The Change Company expects to originate over $8 billion in loans in 2021.

Steven Sugarman, Founder of The Change Company, stated, “We are humbled to announce another milestone for all CDFIs – demonstrating that CDFIs expanding access to homeownership for Black, Latino, and Low-Income borrowers are able to attract the capital and liquidity necessary to increase social and racial equity in America. We are encouraged by the strong, diverse consortium of socially responsible investors who participated in our offerings over the last twelve months, which has resulted in greater than $300 million in new capital. The Change Company will continue to expand its partnerships to reach more underbanked borrowers in more underserved markets across the United States.”

The Change Company will use net proceeds from the Offering, among other things, to continue to fund its initiatives to increase Black Homeownership, Latino Homeownership, and Homeownership in Low-Income Communities by $1 billion each. The Notes, which received an investment grade A- rating from Egan Jones, bear a fixed interest rate of 4.75% and a no-call feature during its first five years. Thereafter, the interest rate will vary each quarter based on a 4.08% spread over the three-month SOFR index.

Performance Trust Capital Partners served as exclusive financial advisor to The Change Company and sole placement agent in the Offering. Gaynor Law Group, P.C. and Michelman & Robinson, LLP served as The Change Company’s legal counsel in the Offering. Windels Marx Lane & Mittendorf, LLP served as legal counsel to Performance Trust.

About The Change Company

The Change Company empowers homeowners, small businesses, and consumers to pursue their American dreams by bringing social and racial equity to banking and lending. The Change Company’s team has built businesses that have lent over $50 billion to over 250,000 Americans.

For more information, visit us at

No Offer or Solicitation

This press release does not constitute an offer to sell, a solicitation of an offer to sell or the solicitation of an offer to buy any securities. There will be no sale of securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The Notes were offered and sold only to accredited investors and to qualified institutional buyers. The Notes have not been and will not be registered under the Securities Act or the securities laws of any other jurisdiction. Unless they are registered, the Notes may be offered and resold only in transactions that are exempt from registration under the Securities Act and applicable state securities laws.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements about our expectations, beliefs, plans, predictions, protections, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. Forward-looking statements are typically, but not exclusively, identified by the use of forward-looking terminology such as “believes,” “expects,” “could,” “may,” “will, “should,” “seeks,” “likely,” “intends” “plans,” “pro forma,” “projects,” “estimates” or “anticipates” or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and that do not relate solely to historical matters. You can also identify forward-looking statements by discussions of strategy, plans or intentions. Forward-looking statements involve numerous risks and uncertainties, and you should not rely on them as predictions of future events. The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: business and economic conditions generally and in the bank and non-bank financial services industries, nationally and within our local market areas; our ability to mitigate our risk exposures; our ability to maintain our historical earnings trends; our ability to successfully identify and address the risks associated with any possible future acquisitions, including risks related to integration; changes in management personnel; interest rate risk; credit risk associated with our loan portfolio; deteriorating asset quality and higher loan charge-offs; time and effort necessary to resolve nonperforming assets; inaccuracy of the assumptions and estimates we make in establishing reserves for probable loan losses and other estimates and projections; lack of liquidity; fluctuations in the fair value and liquidity of the securities we hold for sale; impairment of investment securities, goodwill, other intangible assets or deferred tax assets; our risk management strategies; increased competition in the bank and non-bank financial services industries, nationally, regionally or locally, which may adversely affect pricing and terms; the accuracy of our financial statements and related disclosures; system failures or failures to prevent breaches of our network security; the institution and outcome of litigation and other legal proceedings against us or to which we become subject; changes in federal tax law or policy; the impact of recent and future legislative and regulatory changes, including changes in banking, securities and tax laws and regulations, and their application by our regulators; governmental monetary and fiscal policies; and increases in our capital requirements.

While forward-looking statements reflect our good-faith beliefs, they are not guarantees of future performance. All forward-looking statements are necessarily only estimates of future results. Accordingly, actual results may differ materially from those expressed in or contemplated by the particular forward-looking statement, and, therefore, you are cautioned not to place undue reliance on such statements. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events or circumstances, except as required by applicable law.