Ready Capital Announces 103% Increase in SBA 7(a) Loans Year to Date and Names Gary Taylor as CEO of ReadyCap Lending

Rhea-AI Summary

Ready Capital (NYSE:RC) announced a 103% increase in SBA 7(a) loans, reaching $265.7 million in the first four months of 2024. This underscores the success of their dual lending strategy. Additionally, Gary Taylor has been appointed CEO of ReadyCap Lending, bringing over 25 years of SBA lending experience. ReadyCap Lending aims to achieve an ambitious yearly volume goal of $1 billion, supported by organizational improvements and technology from their affiliate, iBusiness Funding. The company also plans to acquire Madison One, enhancing its position in the SBA lending market.

Positive

• Ready Capital reported a 103% increase in SBA 7(a) loans, totaling $265.7 million in early 2024.
• Appointment of experienced CEO Gary Taylor to lead ReadyCap Lending.
• ReadyCap Lending is the largest non-bank SBA lender and ranks fourth overall.
• Ambitious target of $1 billion in SBA loans within the next 12 months.
• Strategic organizational and process improvements underway.
• Utilization of advanced technology and process efficiency through affiliate iBusiness Funding.
• Planned acquisition of Madison One to expand SBA and USDA loan origination.

Negative

• No financial figures on net profits or losses associated with the increased lending activity.
• Potential risks associated with the ambitious $1 billion loan target.

News Market Reaction – RC

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1 alert

-0.23% News Effect

On the day this news was published, RC declined 0.23%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

NEW YORK, May 21, 2024 (GLOBE NEWSWIRE) -- Ready Capital Corporation (NYSE:RC) (“Ready Capital”) proudly announces a significant milestone for its non-bank SBA 7(a) subsidiary, ReadyCap Lending (RCL), as it closed $265.7 million of SBA 7(a) loans in the first four months of 2024. This achievement represents a remarkable 103% increase from the same period in the previous year, underscoring the success of its dual strategy catering to both large and small loans per SBA guidelines.

In addition to this milestone, RCL is pleased to announce the appointment of Gary Taylor as its new CEO. With over 25 years of extensive experience in SBA lending and operations, Mr. Taylor brings a wealth of knowledge to his new role. He has held senior positions at reputable institutions such as Lehman Brothers, CIT, and Newtek. Mr. Taylor's primary focus in his new capacity will be to spearhead the ongoing growth initiatives at RCL. Notably, RCL currently holds the prestigious position as the largest non-bank lender and ranks fourth overall in the industry in terms of both units and dollars.

Tom Capasse, CEO of Ready Capital, expressed his enthusiasm for the future, stating, "RC is committed to becoming the most cost-effective and borrower-friendly originator of SBA loans. We have set an ambitious yearly volume goal of $1 billion over the next 12 months and are undergoing some organizational, people, and process improvements throughout ReadyCap Lending that are critical to enabling this goal. These strategic changes have been in the works for some time, and we are now starting to realize the results."

Furthermore, Mr. Capasse emphasized the strategic importance of expanding the SBA lending business through additional capital investment. "Delivering capital efficiently to small businesses is an essential part of the U.S. economy and serving underserved borrowers is a key objective of ours. We are continually investing in the business and utilizing the technology and process efficiency of our self-contained affiliate, iBusiness Funding, which pursuant to a Lender Service Provider (LSP) agreement provides lending as a service as well as its advanced technology platform, LenderAI."

In summary, these developments underscore Ready Capital's commitment to excellence in SBA lending and its dedication to driving scalable, cost-effective continued growth and value for its stakeholders. In a separate development, Ready Capital will announce the acquisition of Madison One, a leading USDA and SBA originator.

About Ready Capital Corporation
Ready Capital Corporation (NYSE: RC) is a multi-strategy real estate finance company that originates, acquires, finances and services small- to medium-sized balance commercial loans. Ready Capital specializes in loans backed by commercial real estate, including agency multifamily, investor and bridge as well as U.S. Small Business Administration loans under its Section 7(a) program. Headquartered in New York, New York, Ready Capital employs over 600 lending professionals nationwide.

About iBusiness Funding
iBusiness Funding is a leading provider of lending solutions for banks and lenders of all sizes with a specialization in SBA lending. The company is dedicated to streamlining the business lending process to allow lenders to efficiently deliver capital to small and medium-sized businesses. iBusiness Funding has processed over $6 billion in SBA loans to date, and the team processes over 1,200 business loan applications through its platform daily.

Contact
Investor Relations
Ready Capital Corporation
212-257-4666
InvestorRelations@readycapital.com

FAQ

What recent achievement did Ready Capital announce regarding SBA 7(a) loans?

Ready Capital announced a 103% increase in SBA 7(a) loans, reaching $265.7 million in the first four months of 2024.

Who is the new CEO of ReadyCap Lending?

Gary Taylor has been appointed as the new CEO of ReadyCap Lending.

What is ReadyCap Lending's goal for the next 12 months?

ReadyCap Lending aims to achieve a yearly volume goal of $1 billion in SBA loans.

What is the significance of iBusiness Funding to ReadyCap Lending?

iBusiness Funding provides advanced technology and process efficiency, aiding ReadyCap Lending's growth.

What strategic move is Ready Capital planning to enhance its SBA lending position?

Ready Capital plans to acquire Madison One, a leading USDA and SBA loan originator.