Southern Bancorp Community Partners Raises $2.5 Million To Expand Access To Capital

Officials with Southern Bancorp Community Partners announced Tuesday (Sept. 1) it had crossed the $2.5 million mark in new capital to expand its lending.

SBCP, a 501(c)3 financial development and lending partner of Southern Bancorp plans to raise a total of $5 million to expand its revolving loan fund to provide small business loans, microloans, mortgages and consumer loans in underserved communities in Arkansas and Mississippi.

“This fundraising milestone is a key component of Southern’s growth,” said Darrin Williams, CEO of Southern Bancorp, Inc. “SBCP’s loan fund will amplify the collective power that Southern Bancorp Bank and the holding company have to create economic opportunity in underserved communities. As Southern seeks to substantially increase its impact in underserved communities, the work of SBCP’s loan fund will play a key role in complementing the work of our bank with more flexible and innovative financial services.”

The capital raise is part of SBCP’s effort to expand its own capacity to fill increasing credit, capital and financial education gaps that are holding back people and communities from reaching their full potential, Williams said.

“On behalf of the many hard working people across our markets, I’d like to extend my gratitude to our investors who share our belief that a zip code should not determine one’s economic opportunity in life,” said Dominik Mjartan, CEO of SBCP. “Because of the increase in regulatory hurdles for community banks, many people in our target markets are unable to access the financial capital they need to grow a small business, buy a house or otherwise build their economic independence – key factors in helping lift themselves and their communities out of poverty.

“Expansion of our revolving loan fund will provide that access and help build net worth to provide not just immediate, but generational, economic opportunity. We invite other investors who are seeking financial and social returns to join us and help us reach our $5 million goal.”

The initiative was led by Arkansas Community Foundation, with an investment of $1 million.

The fund will provide a “missing link” SBCP leaders said, for many individuals who have been shut out of traditional lending solutions due to increased regulations. As a lender facing fewer regulations than depository institutions, SBCP is allowed greater flexibility in making good loans that traditional lenders are unable to pursue in rural communities.

“The kinds of loans SBCP will be making from this fund are perfectly aligned with the Community Foundation’s mission of building better communities and a better Arkansas,” said Heather Larkin, Arkansas Community Foundation president and CEO. “Traditionally we have focused on making grants to nonprofit organizations serving our state, but this partnership with SBCP gives us an exciting new way to use our assets to invest in Arkansas families and entrepreneurs working to create better lives for themselves.”

Other significant investments came from the Charles A. Frueauff Foundation, Mercy Investment Services’ Mercy Partnership Fund, Religious Communities Investment Fund, and the Delta Community Capital Initiative. To further increase its lending capacity, SBCP recently joined the Federal Home Loan Bank which means that the organization will now have access to funding for affordable housing in its target markets.

“The work of SBCP aligns with the Sisters of Mercy’s ongoing commitment to help those who are economically poor, especially women and children,” said Sarah B. Smith, Director of Mercy Partnership Fund. “We’re delighted to have this opportunity to help SBCP reach more people in Arkansas and Mississippi, regions where the Sisters of Mercy have a long history and continue to minister today.”

“Religious Communities Investment Fund (RCIF) is a collaborative ministry of 22 Catholic religious women’s congregations who believe that the economy is meant to serve all people, especially the most vulnerable among us,” said Sister Corinne Florek, RCIF Executive Director. “Partnering with SBCP enables us to expand our ministry of economic justice to rural communities in Arkansas.”

“This level of support shows a true interest in sustainable financial and economic development as a means of lifting up rural communities,” said Mjartan. “We look forward to joining with other similarly minded organizations as we continue our work, not just in the Delta, but throughout rural America.”