Citibank Bridge Loans: What You Need To Know

Citi, a major global bank, offers a lending platform called Bridge built by Citi, which helps small- to medium-sized businesses access loans of up to $10 million. This platform connects businesses with various regional, local, and community banks online. However, it is unclear if Citi offers bridge loans for individuals, which are short-term loans that help cover costs during transitional periods, such as when one needs to buy a new home before selling their old one. Bridge loans are often secured by an individual's current home or other assets.

Bridge built by CitiSM Lending Platform

Citi has introduced the Bridge built by CitiSM Lending Platform to expand access to capital for small- to medium-sized businesses in the US. The platform helps businesses connect with various regional, local, and community banks online for loans of up to $10 million. The platform will initially include 18 banks and will be available through a pilot program across several regions in the US, including Alabama, Colorado, Georgia, Louisiana, North Carolina, South Carolina, and Tennessee.

The Bridge built by CitiSM platform is part of Citi's commitment to inclusive access to capital and support for innovative, digital-first financial solutions. It modernizes the lending process while supporting businesses and regional, local, and community lenders. The platform enables capital access for small and medium-sized business owners impacted by COVID-19 and populations that have historically been underserved. It also helps break down legacy barriers for these banks to provide capital to a broad range of communities.

Citi's Action for Racial Equity commitment focuses on helping to close the racial wealth gap and increase economic mobility in the US. The Bridge built by CitiSM platform will engage with Minority Depository Institutions (MDIs) and other local banks to help drive new business and revenue to their local institutions. This will enable MDIs to deploy capital to more entrepreneurs, particularly in underbanked communities, and revitalize neighborhoods ravaged by the pandemic.

The platform will also benefit regional, local, and community banks by providing access to a broad range of communities and expanding their customer base. This will help these banks grow and continue to extend loans to small businesses, contributing to the economic development of their local areas. Overall, the Bridge built by CitiSM Lending Platform aims to support the growth and success of small- to medium-sized businesses in the US by improving their access to capital through innovative digital solutions.

Small- to medium-sized businesses

Citi has demonstrated its belief in the power of local small businesses by launching the Bridge built by CitiSM lending platform. This platform was first introduced in 2021 to help small- to medium-sized businesses (SMBs) connect with various regional, local, and community banks for loans of up to $10 million. The platform initially included 18 banks and was made available through a pilot program across several regions in the US.

The Bridge built by CitiSM platform was designed to address the challenges faced by small and medium-sized businesses in securing loans, which often involve time-consuming manual processes and limited options due to their proximity to banks. By utilising this platform, SMBs can gain access to a range of lenders by simply entering their business information once, making it more efficient for them to connect with lenders and vice versa.

The types of products offered by Bridge built by CitiSM include lines of credit, commercial mortgages, and term loans. These products are essential for small businesses, whether it is for managing cash flow, covering operating expenses, or seizing growth opportunities. For example, a small business can use a bridge loan to fund renovations, purchase inventory, or expand their operations.

One of the primary advantages of bridge loans is the speed at which funds can be obtained. Unlike traditional financing options, bridge loans can be secured rapidly, providing businesses with immediate funds to address financial needs or seize urgent opportunities. However, it is important for SMBs to carefully consider the associated risks and costs, such as higher interest rates, shorter repayment periods, and collateral requirements.

Online loans up to $10 million

Citi has introduced a lending platform called Bridge built by CitiSM to expand access to capital for small- to medium-sized businesses in the US. The platform helps businesses connect with various regional, local, and community banks online for loans up to $10 million. The development of the platform is part of Citi's commitment to inclusive access to capital and support for innovative, digital-first solutions in financial services.

The Bridge built by Citi platform initially includes 18 banks and is available to businesses through a pilot program across several regions in the US, including Alabama, Colorado, Georgia, Louisiana, North Carolina, South Carolina, and Tennessee. The platform aims to modernize the lending process and democratize the loan process for both lenders and borrowers. It enables capital access for small and medium-sized businesses impacted by COVID-19 and underserved populations, breaking down barriers for regional, local, and community banks to provide capital to a diverse range of communities.

Citi's initiative also aligns with its Action for Racial Equity commitment, which focuses on closing the racial wealth gap and increasing economic mobility in the US. By engaging with Minority Depository Institutions (MDIs) and local banks, the platform will help drive new business and revenue to local institutions. This includes secondment arrangements, such as the Citi Rotation Program, which embeds a Citi executive with Black-owned banks.

Through the Bridge built by Citi platform, small and medium-sized businesses can access loans of up to $10 million, providing them with the necessary capital to grow and expand. This initiative by Citi demonstrates its commitment to supporting local businesses and promoting inclusive growth by expanding access to financial services for underserved market segments.

Minority Depository Institutions (MDIs)

Citi introduced Bridge built by CitiSM, a lending platform that helps small- to medium-sized businesses connect with various regional, local, and community banks for loans up to $10 million. The platform is part of Citi's commitment to inclusive access to capital and support for innovative, digital-first financial solutions. The launch of Bridge built by CitiSM also enables the company to engage with Minority Depository Institutions (MDIs) to help drive new business and revenue to their local institutions.

According to the FDIC, a minority depository institution (MDI) is "a federal insured depository institution for which (1) 51% or more of the voting stock is owned by minority individuals; or (2) a majority of the board of directors is minority and the community that the institution serves is predominantly minority." As of December 31, 2021, the FDIC recognized 143 MDIs across the United States and its territories, with collective assets exceeding $325 billion.

The Office of the Comptroller of the Currency (OCC) also plays a role in recognizing and supporting MDIs. The OCC works to promote and revitalize MDIs through initiatives such as technical assistance, improving access to capital, facilitating bank partnerships, and expanding technology capabilities. Institutions interested in obtaining the MDI designation should contact the National Director of the FDIC's Minority Depository Institutions Program.

Citi's Action for Racial Equity

Citi has launched several initiatives to advance racial equity and help communities of colour build wealth and strong financial futures. Here are some of the key actions taken by Citi:

• Commitment to Addressing the Racial Wealth Gap: Citi has committed over $1 billion to address the racial wealth gap in banking and credit, housing, entrepreneurship, and corporate America's role in tackling systemic racism. This includes a range of business and philanthropic initiatives to promote financial inclusion and community investment.
• Action for Racial Equity: In 2020, Citi and the Citi Foundation announced a comprehensive set of strategic initiatives to close the racial wealth gap in the United States. As part of this effort, the Citi Foundation is providing $100 million in grants to support community organizations addressing racial equity issues.
• Support for Diverse Founders and Social Entrepreneurship: Citi's Impact Fund invests in diverse founders and CEOs, helping them realize their visions. Additionally, the Citi Foundation has partnered with Echoing Green to build a more inclusive social entrepreneurship sector. They have provided a $2.5 million grant to Echoing Green's Racial Equity Philanthropic Fund, which supports social enterprises focusing on racial equity across the United States.
• Expansion of Access to Capital for Local Businesses: Citi introduced Bridge built by CitiSM, a lending platform that helps small- to medium-sized businesses connect with regional, local, and community banks for loans up to $10 million. This initiative aims to expand access to capital, particularly for underserved populations and minority-owned businesses, and drive new business and revenue to local institutions.
• Democratization of the Loan Process: Citi aims to democratize the loan process by enabling capital access for small and medium-sized business owners, including those impacted by COVID-19 and historically underserved populations. They also aim to break down barriers for regional, local, and community banks to provide capital to a diverse range of communities.
• Citi Rotation Program: Citi's Banking, Capital Markets, and Advisory Division launched the Citi Rotation Program, which embeds a Citi executive with Black-owned banks to further promote inclusive growth and expand access to financial services.

These actions demonstrate Citi's commitment to racial equity and their efforts to create a fair and equitable society by addressing the racial wealth gap and increasing economic mobility for communities of colour.

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