Crossroads Systems to Acquire Leading Small Business Lender, Fountainhead | Texas News
DALLAS, December 16, 2021 / PRNewswire / – Crossbreeding Systems, Inc. (OTCQX: CRSS) (“Carrefour” or the “Company”), a holding company focused on investing in businesses that promote economic vitality and community development, today announced that it has entered into a tentative agreement to acquire Fountainhead, a leading national direct commercial lender , non-banking, specializing in business financing for small and medium-sized enterprises.
Founded by some of the industry’s most experienced and accomplished Small Business Administration (SBA) lenders, Fountainhead finances the growth of small business borrowers, in addition to working with referral partners in community banks, credit unions and others through their industry leader. referral program. The Fountainhead team has been collectively involved in funding over $ 28 billion in total projects throughout their careers by providing conventional SBA 7 (a), SBA 504 and Low Value (LTV) loans in all 50 US states and territories.
Fountainhead’s SBA products provide capital to deserving small businesses through the SBA 7 (a) program. Additionally, their SBA 504 and conventional loan programs provide low leverage lending opportunities with up to 65% LTV Senior Commercial Real Estate Loans on owner occupied / operated properties.
For the past two years, Fountainhead has also been at the forefront of helping small businesses in America through the SBA’s Paycheck Protection Program (PPP). Since the inception of the program, Fountainhead has concluded and financed nearly 300,000 PPP loans, becoming the sixth-busiest PPP lender in the country in 2021 alone.
“Our acquisition of Fountainhead, a national SBA and a leading PPP lender, allows us to further diversify our product line for small business and to offer more financing solutions to even more deserving businesses across the country,” said declared Eric Donnelly, CEO of Carrefour. “This combination, added to our existing partnerships with Enhanced Capital Group and Rise Line Business Credit, two other leading national credit companies, will allow us to capture additional SBA lending business that fits perfectly into our growing portfolio of opportunities for small businesses. On behalf of our entire organization, I would like to officially welcome Fountainhead to the Crossroads family. “
Founder and CEO of Fountainhead, Chris hurn added, “We couldn’t have found a better partner to help us expand our mission of providing the smartest, fastest possible financing to owners of all well-run small and medium-sized businesses in America. We look forward to working alongside the Crossroads team over the months and years to come to make this a reality. “
This agreement was unanimously approved by the members of the boards of directors of Crossroads and Fountainhead. The deal remains subject to SBA consent and final approval and is expected to close in the first half of 2022. Additional terms were not disclosed.
Fountainhead is one of 14 non-bank lenders licensed to provide SBA 7 (a) loans under its Small Business Loan Company (SBLC) license. Additionally, Fountainhead has one of the SBA’s Preferred Lender Partner (PLP) designations, earned by approximately 10% of participating SBA lenders. The PLP is the highest level of approval and status that a lender can hold, providing full delegation of lending authority.
About Crossroads Systems, Inc.
Crossroads Systems, Inc. (OTCQX: CRSS) is a holding company focused on investing in businesses that promote economic vitality and community development. Crossroads’ subsidiary, Capital Plus Financial (CPF), is a B-Corp Certified and Certified Community Development Financial Institution (CDFI) that supports Hispanic homeownership with a long-term, fixed-rate single-family mortgage product. .
Fountainhead SBF and Fountainhead Commercial Capital (collectively, “Fountainhead”) is a national non-bank direct lender specializing in conventional SBA 7 (a), SBA 504 and low LTV (
Important Cautions Regarding Forward-Looking Statements
This press release contains forward-looking statements relating to the business and expected future events or future performance of Crossroads Systems, Inc. and Capital Plus Financial and involves known and unknown risks, uncertainties and other factors that may result in its actual results, levels of activity, performance or achievements differ materially from any future results, level of activity, performance or achievement expressed or implied by such forward-looking statements. Words such as, but not limited to, “believe”, “expect”, “anticipate”, “estimate”, “intend”, “plan”, “targets”, “probably” , “” Could “, and similar expressions or phrases identify forward-looking statements. Forward-looking statements include, without limitation, statements about the ability of Crossroads Systems and Capital Plus Financial to execute their business strategy and ability to achieve or maintain profitability The future performance of Crossroads Systems and Capital Plus Financial may be affected by the following risks and uncertainties: economic changes affecting homeownership in the geographies where Capital Plus Financial operates. activities, changes in loan markets which may not correspond to Capital Plus Financial’s expectations and may affect Capital Plus Financial’s plans to develop its portfolio, variations in quarterly results, developments in litigation to which we may be a party, technological changes in the industry, future capital requirements, regulatory actions or delays and other factors that may cause actual results to be materially different from those described or anticipated by these forward-looking statements. For a more detailed discussion of these factors and risks, investors should consult Crossroads Systems’ annual and quarterly reports. The forward-looking statements contained in this press release are based on the beliefs and opinions of management at the time the statements are made. All forward-looking statements are qualified in their entirety by this cautionary statement, and Crossroads Systems assumes no obligation to update this information to reflect future events, information or circumstances.
© 2021 Crossroads Systems, Inc., Crossroads and Crossroads Systems are registered trademarks of Crossroads Systems, Inc. All trademarks are the property of their respective owners.
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SOURCE intersection systems; Capital Plus Financial