Momentus Capital Annual Report 2023
#onemomentus
Celebrating our 2023 Impact as #onemomentus
Ellis Carr, President and CEO
Through the hard work of our team, Momentus Capital injected over half a billion dollars in capital into over 600 small businesses & projects in 2023.
I’m proud to report that over 50% of our capital and investments have gone to BIPOC-led projects and businesses, as we work to close the racial wealth gap through income, ownership, and wealth creation. And in doing so, we have helped our borrowers and partners to create or retain over 5,000 jobs.
Our Vision
An economic system that respects and uplifts all peoples’ right to achieve the dreams they have for themselves, their communities, and generations to come.
Our Mission
We help build inclusive and equitable communities by providing people access to the capital and opportunities they deserve.
Our Values
Impact Highlights
$
Total Capital Deployed
$229,888,335
Community Development Loans Closed
$71,292,000
Impact Investments Approved
$164,055,954
Commercial Real Estate Loans Approved
Including $115,913,000 in SBA 504 loans
$66,420,849
Small Business Loans Approved
Including $60,030,997 in Community Advantage 7(a) loans
Supporting Communities to Succeed
Our goal is to support successful communities so that the people within them can achieve the dreams they have for themselves. Addressing the Social Determinants of Health (SDOHs) is a crucial way to do that. SDOHs are the conditions in which people are born, live, work, and age that have an impact on their health and wellness. These conditions include factors such as economic security, education, housing, food access, access to healthcare services, and social support networks. We aim to have a significant impact on these determinants through our lending and investment practices.
Momentus Capital focuses on the Social Determinants of Health when considering and measuring impact.
Momentus Capital focuses on the Social Determinants of Health when considering and measuring impact.
627
Small Businesses + Developers Served
5,700
Jobs Created and Preserved
13,234
Business Advisory Hours Provided at No Cost
948
Students Served by Expanded Schools
57,807
Patients with Expanded Access to Healthcare
424,000
People with Expanded Access to Food
1,628
Affordable Housing Units Financed
Further details about how we are driving social impact that supports Diversity, Equity, and Inclusion can be found below.
Ventures Lending Technologies
Ventures is our premier cloud-based commercial lending platform that offers services throughout the entire lifecycle from a borrower prospect to loan payoff. Over 230 community lenders across the country use Ventures to streamline their work providing capital to businesses and communities.
In 2023, Ventures software was used to enable nearly $6B of financing, including over $2B to BIPOC-owned businesses.
Our Continuum of Capital in Action
Momentus Capital recognizes that the places where people live and work have a significant effect on their health and well-being. To that end, we employ a Place-Based Approach, supporting specific Focus Regions where we aim to maximize impact.
Because economic challenges facing communities are multi-dimensional, successful place-based work must employ a variety of solutions through our continuum of capital.
Working in Focus Regions allows us to better tailor the types of capital we offer to support local solutions. This targeted strategy leads to deeper and more durable impact with the communities we support.
Highlights of 2023 work in Focus Regions include:
Los Angeles
- Over $181 million deployed
- Over 40% of capital provided to BIPOC business owners
- Over 240 businesses supported
- Over 2,200 jobs created or preserved
Washington, D.C.
- Over $54 million deployed
- 15 developers of color trained and connected
- 384 affordable housing units financed
- $500,000 in grant funding to BIPOC-owned food businesses
Dallas-Fort Worth
- Over $17 million deployed
- Over 90% of capital provided to female business owners
- Over 88% of capital provided to BIPOC business owners
Expanding Our Commitment to Cooperatives
With so many people in communities across the country looking for viable opportunities not just to survive but to thrive, cooperatives are a proven model that builds and holds wealth, especially for workers in underestimated communities. Since its founding in 1982, Capital Impact Partners has been grounded in the power of the cooperative model, and has worked to foster employee ownership nationwide through our continuum of capital.
$10,525,000
Lending and Investments
$170,000
Grants
2023 Co-op Innovation Award Winners
The Compost Cooperative
Greenfield, MA | Award Amount: $50,000
Northwest Cooperative Development Center
Olympia, WA | Award Amount: $45,000
Rock Steady Farm
Millerton, NY | Award Amount: $40,000
Birthmark Doula Collective, operating as New Orleans Breastfeeding Center
New Orleans, LA | Award Amount: $35,000
With thanks to our longstanding partner National Cooperative Bank, and new 2023 sponsors Rochdale Capital, Wells Fargo, Ford & Paulekas, LLC, National Co-op Grocers, and TruStage.
Since 2015, the Co-op Innovation Awards have:
- Deployed 25 grants totaling $855,000
- Grantees have leveraged the award to secure more that $13 million in additional funding from foundations, investors, and government
- Grantees have reached more than 2,500 community members through meetings and training
Other Cooperative Highlights:
- Cooperative Hall of Fame Sponsor
- Matt Wehland, Chief Operations Officer, named to the board of directors for the National Cooperative Business Association | CLUSA International
Stories of Impact
We are expanding opportunities for small business owners, social enterprise leaders, community-minded developers, and creators of community facilities by providing a continuum of capital.
Commitment to Diversity, Equity, and Inclusion
Our DEI Vision of Success
Momentus Capital will center the needs, desires, and input of our workforce and the communities that we serve, by valuing and hearing all voices. Our DEI Strategy provides individuals with a platform for open and honest communication and takes necessary actions to make our goals achievable.
We’re committed to exhibiting our DEI vision both internally and externally in alignment with our three areas of focus: Community, Workplace, and Workforce.
Community
The external partnerships and communities that benefit from the intentional efforts of our DEI strategy.
Workplace
The infrastructure that contributes to our DEI journey (i.e., culture, guiding principles, etc.)
Workforce
The individuals that make up and contribute to our workplace and communities.
Community
Diverse Community Development Real Estate Developers Funded
| Projects | Loans | Loans Funded |
|---|---|---|
| 20 | 43 | $120,233,015 |
Small Business Entrepreneurs Funded
| Projects | Loans Funded | |
|---|---|---|
| Entrepreneurs of Color | 262 | $264,401,873 |
| Women | 224 | $145,448,142 |
| Veterans | 51 | $60,065,400 |
Entrepreneurs of Color Fund Initiative
Washington, D.C. Metro Area*
The collaborative has engaged nearly 100 community-based organizations, private partners, and public agencies, prioritizing and centering regional entrepreneurs in underserved communities to scale their businesses, create jobs, and build wealth.
- Loans Deployed: $44,029,521
- Small Businesses Assisted with Loans & Technical Assistance: 1,719
- Quality Jobs Created or Retained: 899
- Low-to-moderate income individuals served: 1,133
- Amount of increased revenue for small businesses served: $84,500,000
- 157 convenings have been hosted across the initiative, to share best practices and strengthen support to small businesses across the D.C. Metropolitan Region
*Loans provided by project partners Washington Area Community Investment Fund (Wacif), the Latino Economic Development Center (LEDC), and City First Enterprises.
Impact Investment Highlights
Our Impact Investments program is focused on helping growth-stage companies create more social impact in their communities, which are often underserved. Below are a few highlights from the past year.
| Company | Investment Amount | Investment Type | Sector | Geography |
|---|---|---|---|---|
| Allegiant Transportation Legacy | $250,000 | Mezzanine Debt | Trucking | Atlanta Metro |
| BLK & Bold | $2,000,000 | Mezzanine Debt | Food & Beverage | Des Moines, IA |
| Cameo Consulting | $21,500,000 | Preferred Equity & Senior Debt | Government Contracting | Washington, D.C. Metro |
| Laine London | $700,000 | Mezzanine Debt | Bridal | Atlanta Metro |
| Mightly | $500,000 | Preferred Equity | Retail/Clothing | Bay Area |
| Tayion Collection | $250,000 | Mezzanine Debt | Retail/Clothing | Detroit Metro |
| QualityWorks | $2,000,000 | Preferred Equity | Consulting | Los Angeles |
| Rebills | $6,692,000 | Preferred Equity | eCommerce | North Carolina |
| Webber Media | $1,700,000 | Preferred Equity | Media | Southern California |
Free Business Advising Hours Provided
Female Entrepreneurs
| Clients | Total Hours |
|---|---|
| 305 | 4,318 |
Veteran Entrepreneurs
| Clients | Total Hours |
|---|---|
| 53 | 681 |
Entrepreneurs of Color
| Clients | Total Hours | |
|---|---|---|
| Hispanic/Latino | 170 | 2,904 |
| Asian | 184 | 998 |
| Black/African American | 184 | 2,346 |
Diverse Developers Training Program
Our diverse developers training program supports a wide range of developers to grow their careers and support communities. This includes emerging developers through our Equitable Development Initiative (EDI), as well as more established developers through our programs with Amazon and Wells Fargo.
Highlights from 2023 include:
San Francisco Bay Area
- Launch of Bay Area Listening Tour Community Outreach Initiative
- 25+ meetings with local stakeholders
- Hosted or sponsored 6 local events, totaling 120 attendees
- Launch of Bay Area EDI Cohort 2
- 53% increase in applications (year-over-year)
- 13 cohort participants (70% women)
- 92% receiving support for active projects in pipeline
- Provided 45 hours of technical assistance in 2023, including group trainings and one-on-one advising
- Kickoff event brought together 40+ community members, featuring a panel with representation from local BIPOC developers, the City of Oakland, and Alameda County
- Currently 26 emerging developers in the network
- 2 screening referrals for alumni and current EDI participants – totaling $2.5 million, 120 units of affordable housing in downtown Oakland
Detroit Metro
- Launch of sixth Detroit EDI cohort with over 50 applicants and 15 selected participants
- Funding highlights:
- In total, the Detroit Program has committed $766,875 in predevelopment and project feasibility grant awards to 30 Detroit EDI alumni-led projects led by 33 Detroit EDI alumni.
- The grants are designed to provide early-stage, low-cost capital to help EDI alumni move their projects forward, with amounts ranging from $10,000 to $75,000.
- If all of the projects awarded since 2021 move forward, they will rehab or develop 759,893 square feet of new and rehabbed space; 495 residential units, including the creation of 290 units at or below 80% AMI; and 40 commercial units.
Dallas-Fort Worth
- Launched EDI Cohort 2
- 15 cohort participants, 9 female
- Projected pipeline of over 400 housing units
- Partnered with Charles Schwab to host a panel event on how to uplift communities with social impact investing
- EDI Cohort 1 Alumni Highlights:
- 90% of Cohort 1 participants reported increased knowledge
- Two alumni members are working on their first multi-family developments
- Received a CDFI Fund FA award of $640,000 to support lending to developers of color
Washington, D.C.
- Housing Equity Accelerator Fellowship (Amazon Partnership):
- HEAF Cohort #1 concluded with participants supporting 401 housing units in development
National
- Growing Diverse Housing Developers (Wells Fargo Partnership):
- Launched first GDHD Annual Developer Meeting in Atlanta, bringing together 27 developer participants and four private equity firms from across the country
- EDI 2.0 Curriculum Revision Summary
- Curriculum re-structured around four primary learning outcomes to create cohesion and more effective assessment:
- Knowing Your Projections; Knowing Your Projects; Knowing Your Business and Funders; Knowing Your Market(s)
- Dedicated peer-learning and discussion time added to each session, following adult learning principles and to allow for greater retention of material
- All courses hosted on Momentus Academy, a Learning Management System run through the Moodle platform
- Curriculum re-structured around four primary learning outcomes to create cohesion and more effective assessment:
- Pilot EDI Video Case Studies
- Created eight short videos featuring Diverse Developer participants and alumni speaking to the above curricular learning outcomes. Videos will be used to enhance the curriculum across all Diverse Developer programming
- Austin Small Developer Training
- Trained 18 local developers in partnership with HousingWorks Austin and Austin Housing Finance Corp.
Nourish D.C. Collaborative (Washington, D.C.)
Since the launch of the program in October of 2021, the Collaborative partners* have:
- Deployed over $16.2 million in financing; $1,330,000 in grants; and technical assistance to over 600 food businesses in D.C.
- Served food entrepreneurs that are 92% BIPOC and 68% women
- Created or retained 410 quality jobs
- Outreach to over 2,400 community members through community events, including 1,500 in-person attendees
*Loans provided by project partners Washington Area Community Investment Fund (Wacif), the Latino Economic Development Center (LEDC), and City First Enterprises.
Workplace
Staff Engagement Survey: DEI Metrics
- 83% agree that Momentus Capital values diversity
- 80% agree that employees from all backgrounds have an equal opportunity to succeed at this organization
Debuted 21-Day DEI Learning Challenge
- Provided staff with educational content in the form of articles, videos, podcasts, or interactive websites to develop a deeper understanding of how DEI affects our work and aligns with Momentus’ mission and vision.
- Custom Intranet site allowed participants to reflect on and discuss their learnings with colleagues across Momentus.
“The most striking lesson I’ve learned about DEI is the profound impact it has on individuals and organizations. Recognizing the power of diversity, both in terms of demographics and diversity of thought, is crucial. The realization that inclusivity isn’t just about policies but also about fostering a culture where everyone feels valued has been particularly eye-opening.”
“The thing that resonated most was that privilege is the unearned social, political, economic, and psychological benefits of membership in a group that has institutional and structural power. Learning about the common types of privilege was helpful in my DEI journey.”
Workforce
Staff Diversity Table
| BIPOC | Female | |
|---|---|---|
| Board of Directors | 58.82% | 35.29% |
| Momentus Capital Staff | 55.17% | 59.56% |
| Executive Management Team | 62.50% | 37.50% |
| Lending Teams | 59.41% | 64.12% |
| Program Teams | 70.37% | 44.44% |
Insights
Media Highlights
Media outlets from across the country have featured our work with communities and local leaders. Below are some highlights of that coverage.
New broker-dealer Momentus Securities launches with plans to bring more institutional investment to social impact
New York Life and Momentus Capital partner to deliver more SBA 504 first mortgage loans to commercial real estate projects
City First Bank and Momentus Capital collaborate to boost SBA 504 first mortgage lending to underserved entrepreneurs
Wedding startup Laine London nabs investment via S.P.U.R. Pathways program offered by Macy’s, Inc. and Momentus Capital
Capital Impact Partners joins with Cleveland organizations to expand Equitable Development Initiative, increase diversity among real estate developers
Detroit projects by developers of color find grant funding through Capital Impact Partners’ Equitable Development Initiative
Nourish DC Collaborative, led by Capital Impact Partners, awards $500k in grants to local food businesses
Ellis Carr, President and CEO of Capital Impact Partners and CDC Small Business Finance, named to Washington Business Journal’s “Power 100”
For a full list and links to articles, please visit our news coverage page.
Awards & Recognition
People
Ellis Carr
Power 100 List
Washington Business Journal
Aaron Gougis
Diversity Community Champion
Dallas Business Journal
Miriam Baltys
Financial Services Champion of the Year
SBA San Diego District
Stacey Sanchez
#2 SBA Lender
Orange County Business Journal
Kim Dorsett
HR Leadership Awardee
DCA Live
Tom Brune
Innovators of the Year (Finalist)
American Banker
Kelly Klein
40 Under 40 (Finalist)
San Diego Business Journal
Institutional
2023 Nonprofit Times
Best Nonprofits to Work For
Capital Impact Partners & CDC Small Business Finance
2023 Bankrate SBA Loan Statistics
#1 in Best SBA Community Advantage Lenders
CDC Small Business Finance
Top Community Advantage Lender,
SBA Fresno, California District
CDC Small Business Finance
Community Advantage Lender of the Year and Top 10 Lender, SBA Michigan District
CDC Small Business Finance
QLICIs of the Year (Honorable Mention),
Novogradac Journal of Tax Credits
Capital Impact Partners
S&P Global Ratings
A+ institutional credit rating with a stable outlook
Capital Impact Partners
Fitch Ratings
A+ rating with a stable outlook
Capital Impact Partners
ImpactAssets IA50 List
(seven consecutive years)
Capital Impact Partners
Aeris Rated
Capital Impact Partners
Financial Highlights
Community Development Lending
FY2019-FY2023
Total Asset Growth
FY2019-FY2023
Total Net Assets
FY2019-FY2023
Loan Portfolio Growth
FY2023
Delinquency Ratio
Small Business Lending
FY2019-FY2023
Total Asset Growth
FY2019-FY2023
Unrestricted Net Asset Growth
FY2019-FY2023
Loan Portfolio Growth
FY2023
Delinquency Ratio
Capital Impact Investment Note
Offered through Capital Impact Partners, the Capital Impact Investment Note provides a unique opportunity for individuals and organizations to invest in our efforts to create social and financial impact for underestimated communities nationwide.
Total amount invested in FY 2023
$
Total amount invested over the life of the Note
(Since inception as of 1/31/2024)
$
*At year end FY2023
Portfolio Highlights
Community Development Lending
$
Total Managed Portfolio
Small Business
$
Total Managed Portfolio
On-Balance Sheet
| Sector | Loan Balance | Bar Chart |
|---|---|---|
| Accommodation and Food Services | $27,447,822.50 |
|
| Manufacturing | $25,918,344.32 |
|
| Retail Trade | $23,541,742.45 |
|
| Health Care and Social Assistance | $22,069,827.38 |
|
| Professional, Scientific, and Technical Services | $17,890,272.06 |
|
| Other Services (except Public Administration) |
$16,449,881.42 |
|
| Construction | $15,255,629.58 |
|
| Wholesale Trade | $12,099,785.84 |
|
| Educational Services | $8,923,378.96 |
|
| Arts, Entertainment, and Recreation | $8,466,530.00 |
|
| Administrative and Support and Waste Management and Remediation Services | $7,606,400.12 |
|
| Transportation and Warehousing | $4,577,911.48 |
|
| Finance and Insurance | $3,712,670.85 |
|
| Real Estate and Rental and Leasing | $2,936,738.28 |
|
| Information | $2,636,151.71 |
|
| Agriculture, Forestry, Fishing and Hunting | $408,037.90 |
|
| Utilities | $212,759.69 |
|
Off-Balance Sheet
| Sector | Loan Balance | Bar Chart |
|---|---|---|
| Wholesale Trade | $271,187,615.83 |
|
| Retail Trade | $260,832,588.45 |
|
| Professional, Scientific, and Technical Services | $259,516,536.28 |
|
| Manufacturing | $256,522,793.49 |
|
| Health Care and Social Assistance | $232,567,224.92 |
|
| Accommodation and Food Services | $207,958,944.94 |
|
| Construction | $167,969,433.86 |
|
| Other Services (except Public Administration) |
$113,776,941.40 |
|
| Transportation and Warehousing | $80,506,636.99 |
|
| Real Estate and Rental and Leasing | $74,140,049.19 |
|
| Arts, Entertainment, and Recreation | $45,809,364.02 |
|
| Finance and Insurance | $37,568,362.25 |
|
| Administrative and Support and Waste Management and Remediation Services | $28,983,543.66 |
|
| Educational Services | $21,198,353.03 |
|
| Information | $19,491,070.96 |
|
| Public Administration (not covered in economic census) |
$3,060,883.50 |
|
| Management of Companies and Enterprises | $2,078,885.66 |
|
| Agriculture, Forestry, Fishing and Hunting | $456,793.01 |
|
Momentus Capital Financial Documents
Leadership Team & Board of Directors
An experienced, mission-focused, and diverse group of leaders.
Momentus Capital’s mission-focused leadership team and board of directors bring decades of experience supporting community and economic development across the country. Their experience spans community development, capital deployment, small business, policy, and impact investing.
Gary Cunningham & Ellis Carr Discuss Momentus Capital & Financial Inclusion
President & CEO Ellis Carr hosted a discussion with Board Chair Gary Cunningham at the Momentus all-staff meeting were they discussed the importance of financial inclusion, the need to embed the principles of Diversity, Equity, and Inclusion into this work, and the innovative solutions that Momentus Capital is delivering to disrupt the financial sector.