Community Bank & Trust Announces Closing of Second-Ever SBA 7(a) Multi-Lender Securitization

LAGRANGE, Ga., Oct. 07, 2025 (GLOBE NEWSWIRE) -- Community Bank & Trust - West Georgia (CB&T), a subsidiary of Community Bankshares Inc recently announced the successful closing of the SOUP 7(a) Trust 2025-FBC1, a $118.9 million securitization backed by the unguaranteed portions of U.S. Small Business Administration (SBA) 7(a) loans. This marks the second-ever securitization of its kind and highlights CB&T’s leadership in expanding innovative capital solutions for small business owners and their lenders.

The transaction, rated BBB (high) (sf) by Morningstar DBRS, establishes a proven pathway for SBA lenders nationwide to access permanent liquidity. Falcon Bridge Capital served as Deal Manager, Structuring Agent, and Asset Manager, partnering with Community Bank & Trust (CB&T) and a consortium of SBA-approved lenders to pool unguaranteed loan interests into a scalable securitization platform.

In alignment with SBA regulations (13 CFR §§ 120.420–120.425), participating lenders securitize their unguaranteed interests (typically 25% of the loan amount) on a servicing-retained basis. Ownership certificates remain with the originating lenders, while senior rated classes are sold to institutional investors—striking a balance between capital relief and long-term relationship retention.

“Community Bank & Trust is proud to play a leading role in advancing securitization solutions that give SBA lenders the capital flexibility they need to serve America’s small businesses,” said Jeremy Gilpin, President & CEO of Community Bank & Trust. “This second issuance represents not only an important milestone for our institution, but also for the broader SBA lending market as we continue to find innovative ways to power small business growth nationwide.”

“Access to capital for America’s small businesses is critical for the American economy. With this vehicle, we’re able to increase SBA lender liquidity thereby enabling more SBA loans, more small business growth, and fuel for the American economy,” said Chris Hurn, President & CEO of Community Bankshares, Inc., the bank holding company for Community Bank & Trust.

The SOUP 7(a) securitization platform is designed to deliver permanent non-recourse liquidity, reducing lenders’ reliance on deposits and short-term repo financing, while also expanding SBA lenders’ capacity to originate new loans and provide more small businesses with access to capital. In addition, the platform serves as a strategic balance sheet management tool, enabling lenders to retain valuable customer relationships and servicing rights while freeing up capital for growth. Ultimately, this innovative structure strengthens the SBA’s mission to support entrepreneurship and drive small business expansion across the United States.

“SOUP 2025-FBC1 represents an exciting opportunity and establishes a consistent platform for investors seeking unique, high-impact investments that support small business activity across the country,” said Sunil Chowdry, President & CEO of Falcon Bridge Capital. “We believe this transaction will encourage other SBA Lenders to utilize the Multi-Lender Securitization platform, and pool their unguaranteed portions in a capital markets transaction, to increase liquidity and strengthen their balance sheets while attracting institutional capital to the sector. We congratulate Community Bank & Trust who have been terrific partners throughout this process and look forward to our continued collaboration.”

About Community Bankshares, Inc.

Community Bankshares, Inc. is the holding company of Community Bank & Trust, Thomas Financial Group, and Phoenix Lender Services. With a commitment to building a nationwide community of financial solutions, Community Bankshares specializes in innovative banking, USDA and SBA lending, and structured finance strategies that drive growth for businesses across diverse industries.

About Community Bank & Trust

Headquartered in LaGrange, GA, Community Bank & Trust is a leading community-focused financial institution dedicated to delivering innovative lending solutions, relationship banking, and strategic financial products that fuel growth for businesses and communities nationwide. CB&T is a subsidiary of Community Bankshares, Inc.

About Falcon Bridge

Founded in 2006 and SEC-registered since June 2011, Falcon Bridge Capital started as a joint venture with a leading private equity firm, managing residential mortgage-backed securities portfolios. It has since evolved into a full-service specialty finance company and asset manager, delivering capital markets and corporate finance solutions, including innovative liquidity strategies and structured product expertise that drive impactful results for clients.

MEDIA CONTACT:
Abigail Davison
Uproar by Moburst for Community Bankshares, Inc.
abigail.davison@moburst.com

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