New York, NY, March 17, 2022 —TruFund Financial Services (TruFund), a nonprofit that provides affordable loan capital to small businesses and nonprofits, announced the launch of their new real estate acquisition program (rap) aimed at helping Black, Indigenous and People of Color (BIPOC) overcome barriers to owning real estate such as the traditional percentage required for down payments. Minorities face well-documented disparities in accessing capital. These historical and systemic barriers make it more difficult for minority owned businesses to build wealth not only through business ownership but also the creation of generational wealth through real estate acquisitions.
“Real estate ownership can be transformative for small business owners. It brings stability as it mitigates against displacement and allows a business to take greater control of its physical assets to improve operations and capacity.” said James H. Bason, President & CEO of TruFund Financial Services, Inc. “We are excited to offer one of the first of its kind products for communities we serve.”
Unlike traditional commercial real estate loans TruFund’s real estate acquisition loan product offers a primary first mortgage of up to 90% of property purchase price with the option to add a subordinated loan of up to 5% of a property purchase.
“TruFund’s RAP product eliminates the barrier of the traditional percentage required for down payment.” said Robert Benitez, Vice President – Director of Lending for TruFund Financial Services, Inc. “This innovation gives true access to ownership that has not previously been available to BIPOC business owners.”
“TruFund’s real estate acquisition program allowed my dreams of commercial real estate ownership to become a reality.” said Brad Hitchens, Owner of Salon 623 in Baton Rouge, LA “My experience with TruFund was smooth and supportive.”
RAP will initially be offered in TruFund’s footprint states of New York, Alabama, Louisiana, and Texas. Visit TruFund’s website for more information on the new RAP program or to read full TruImpact story on Brad Hitchens.
