Community Development Solomon Hess SBA Loan Fund Receives Highest Possible Credit Quality Rating From Moody's

Solomon Hess Capital Management's flagship CRA-eligible SBA Loan Fund receives Aaa-bf rating from Moody's Investor Service.

​Solomon Hess Capital Management (“Solomon Hess”), announced today that its flagship CRA-eligible SBA Loan Fund received a Aaa-bf bond fund rating from Moody’s Investor Services.  This rating is based on Moody’s assessment of the creditworthiness of the portfolio and is an indication that the SBA Loan Fund holds assets judged to be of the highest credit quality.  Managing Director and Chief Financial Officer of Solomon Hess Bill Einstein said, “The SBA Loan Fund received the highest possible rating given by Moody’s (triple A), which reflects the portfolio’s composition of such a high concentration of federally guaranteed assets.”

The SBA Loan Fund is a private fund which provides bank investors with Community Reinvestment Act (“CRA”) eligible investments for community development impact by acquiring the guaranteed portion of Small Business Administration (“SBA”) 7(a) loans where the underlying small business borrower is located in a low or moderate or otherwise economically distressed region as targeted by bank investors.  Since its inception in 2004, the SBA Loan Fund has invested over $1.3 billion in small businesses located in low or moderate income or redevelopment areas across the nation and has supported the creation and/or retention of over 38,000 jobs.  

An example of the types of loans in the SBA Loan Fund’s portfolio is an equipment finance loan made to The Warrior Services Company located in Valley Stream, New York.  The borrower is a Veteran-owned and operated business in a moderate income census tract that provides durable mobility equipment and mobility support services for retired Armed Forces veterans and civilian patients with limited mobility.  The small business loan supported the creation and/or retention of 25 jobs. “When we review small business loans for investment, we look for businesses that embody the spirit of community development regulations and go beyond the CRA requirements,” said Bill Einstein.  The SBA Loan Fund has 112 investors and over $460 million of assets, making it a well-established CRA-eligible investment fund in the market place.  

The SBA Loan Fund received the highest possible rating given by Moody's (triple A), which reflects the portfolio's composition of such a high concentration of federally guaranteed assets.

Bill Einstein

Managing Director and Chief Financial Officer

About Solomon Hess Capital Management

Solomon Hess is an alternative asset manager that creates value for investors through community and economic development impact funds.  Since inception in 2004, Solomon Hess has invested over $1.7 billion across 10 investment vehicles. The firm’s flagship fund is the SBA Loan Fund which provides bank investors with CRA eligible investments for community development.  Solomon Hess has expertise in the acquisition of SBA and U.S. Department of Agriculture (“USDA”) program loans and associated servicing assets, such as Interest Only Strips, in the secondary market.  Strategies are available through private funds, sub-advisory services and separate accounts.  Founded in 2004 and headquartered in Falls Church, Virginia, Solomon Hess managed assets of $608 million on behalf of over 150 institutional and accredited individual investors as of September 30, 2017.  More information is available at www.SolomonHess.com

Media Contact: Michelle Lai, Investor Relations, 703.466.0483, mgolai@SolomonHess.com

Source: Solomon Hess Capital Management


Categories: Investments, Commercial Banking, Consumer Banking

Tags: Bank, Community Development, Community Development Investing, Community Development Lending, Community Reinvestment Act, Impact Investing


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About Solomon Hess Capital Management

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Solomon Hess is an alternative asset management company that creates value for investors through community and economic-development funds. As of 3/31/17 the firm had over $600 AUM and over 150 institutional and accredited individual investors.

Solomon Hess Capital Management
431 Park Avenue (Suite 401)
Falls Church, VA 22046
United States