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Southern Bancorp Community Partners Raises $2.5M to Expand Loans

2 min read

Southern Bancorp Community Partners, the nonprofit lending partner of Southern Bancorp, announced Tuesday that it has raised $2.5 million toward a $5 million goal to expand its revolving loan fund for 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. in a news release. “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 will provide sustainable and flexible lending options to entrepreneurs and small business owners in some of America’s most distressed communities who have been shut out of traditional lending solutions due to increased regulations, he said.

The $2.5 million round was led by $1 million from Arkansas Community Foundation. 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.

In addition to the funding round, SBCP recently joined the Federal Home Loan Bank to further increase its lending capacity, the release said.

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

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