BM Technologies, Inc. and the Surviving Subsidiary Enter into a Loan Agreement with Customers Bank
January 08, 2021 at 10:20 pm
Share
BM Technologies, Inc. announced that in connection with the Closing, on January 4, 2021, the company and the Surviving Subsidiary entered into a Loan Agreement (the Loan Agreement) with Customers Bank (the Lender) providing for a line of credit of up to $10 million, subject to a borrowing base requirement based on BMT’s and Surviving Subsidiary’s accounts receivables. Borrowings made under the Loan Agreement are subject to an interest rate equal to the 1-month London Interbank Offered Rate (“LIBOR”) plus 375 basis points, and are secured by the assets of BMT and Surviving Subsidiary. Borrowed funds may be repaid at any time without penalty. Concurrent with signing the Loan Agreement, BMT drew approximately $5.4 million under the Loan Agreement to refinance intercompany debt owed by BankMobile to Customers Bank immediately prior to the Closing.
BM Technologies, Inc. is a financial technology company. The Company facilitates deposits and banking services between a customer and its partner bank, Customers Bank and First Carolina Bank, (the Partner Banks), which are related parties. The Company provides high-tech digital banking and disbursement services to consumers and students nationwide through a full service fintech banking platform, accessible to customers anywhere and anytime through digital channels. Its banking platform provides access to checking and savings accounts, personal loans, and financial wellness. Its fintech business model leverages Banking-as-a-Service (BaaS) partnersâ and University partnersâ existing customer bases to achieve high volume, low-cost customer acquisition in its Higher Education Disbursement and BaaS businesses.
BM TECHNOLOGIES, INC. 
