SERVICES: lending & underwriting

MRS worked with Philadelphia LISC to source, underwrite and close a $4 million subordinate leverage loan for New Market West, a $50 million NMTC project. The project creates 90,000 s.f. of commercial office and service space for a developmentally-disabled service provider, a neighborhood-based homeless service provider, and a childcare center. The project required in-depth underwriting of the sponsor, Mission First Housing Group, and its technical and financial capacity. Other funders included PIDC, PNC Bank, TD Bank, Cinnaire, and Commonwealth Cornerstone Group.

MRS worked with Philadelphia LISC to provide $1.2 million in term debt for First Step Staffing to acquire a temporary labor staffing business in Philadelphia. First Step Staffing, an Atlanta-based non-profit, completed their expansion outside of Atlanta to acquire a Philadelphia-based business and implement their social enterprise model by placing homeless veterans and returning citizens. The combined financing provided by PIDC, Reinvestment Fund, and the Nonprofit Finance Fund funded the $4.85mm senior tranche of debt, combined with seller financing and subordinate financing of nearly $1 million, led by the Impact Loan Fund for a total financing of nearly $8 million.

Since 2017, MRS has operated Impact Loan fund, a small business lending CDFI based in Lower Northeast Philadelphia. MRS manages the fund, including compliance, fundraising, origination, credit and servicing the portfolio. The loan fund had a transition in leadership but had a 15 year history. MRS took over the fund, brought on a new lender, updated policies, systems and engagement and increased deployment of existing capital. MRS also raised nearly $500,000 from the CDFI fund and received an award of $1 million through a CDFI collaborative funded by JP Morgan Chase. MRS also launched a new lending program for small developers, which doubled the size of the fund.