Community Bank Joins BDC Capital as a Member Bank

A $17 billion institution with a growing northern New England footprint adds its balance sheet to the network that funds BDC's financing programs.

Community Bank, with over $17 billion in assets and locations in Vermont, New Hampshire and Western Massachusetts, recently became a BDC Capital member bank. It joins 37 financial institutions located throughout New England that serve as the primary funding source for BDC's various financing programs.

Why membership matters to a commercial lender

Every commercial banker eventually meets the same problem: a good company, a sound plan, and a request that does not quite fit inside conventional credit parameters. The loan is too large for the bank's hold limit. The collateral is there but the cash flow needs time to catch up. The acquisition makes sense, yet the structure calls for a layer of capital the bank cannot provide alone.

Membership in BDC Capital gives lenders a way to keep that conversation going. BDC participates alongside the bank or structures financing on its own, and the referring institution keeps what matters most: the client relationship, the deposits, and the treasury management services that come with them. Member banks also gain access to hundreds of new loan and investment opportunities each year and Community Reinvestment Act credit on qualifying participations.

What the partnership brings

"BDC works in partnership with banks and investors to deliver customized financing solutions beyond the scope of conventional financing," said Paul F. Flynn, Jr., BDC Capital's President and CEO. "Bankers refer many of their customers to us to help extend their institution's lending capacity. Community Bank is a great addition to our membership."

For Community Bank, the addition arrives alongside a period of expansion across Vermont, southern New Hampshire and Western Massachusetts.

"Our partnership with BDC Capital gives our commercial banking teams another resource to help businesses access the capital they need to grow," said Matt Plasse, Community Bank's Regional President for New England. "By combining our local market knowledge and customer relationships with BDC's specialized financing capabilities, we can help meet more complex financing needs while continuing to support businesses across northern New England."

The financing behind the relationship

Whether the need is $500,000 or $10 million, BDC Capital offers asset-based lines of credit, term debt, cash flow loans, mezzanine investments and SBA 504 loans, each one customized to suit the needs of the business. That range is what allows a member bank to bring one lending partner to a working capital line, a real estate acquisition and a management buyout, rather than three.

Businesses across northern New England will not see the mechanics of the arrangement. They will see something simpler: fewer conversations that end in no.

About BDC Capital

The oldest business development corporation in the United States, BDC Capital has been recognized locally and nationally as a leader and innovator in business lending and capital investment. Many of New England's leading financial institutions invest in BDC to help promising companies expand. For over 70 years, we have invested more than $2 billion in thousands of companies in New England.

Learn more about BDC Capital

About Community Bank

Community Bank, N.A., a subsidiary of Community Financial System, Inc., is among the country's 100 largest banking institutions, with more than $17 billion in assets and approximately 200 customer facilities across Upstate New York, Northeastern Pennsylvania, Vermont, southern New Hampshire and Western Massachusetts. Through its growing presence across northern New England, Community Bank provides commercial banking, lending and other financial services to businesses and individuals throughout the region.

In addition to banking, CFSI is a diversified financial services company focused on three additional business lines: Benefit Plans Administrative Services Inc., a leading provider of employee benefits administration, trust services, collective investment fund administration and actuarial consulting services to customers on a national scale; OneGroup NY Inc., a top-68 U.S. insurance agency; and comprehensive financial planning, trust administration and wealth management services through Nottingham Financial Services.

Learn more about Community Bank

Interested in BDC membership?

There is no cost to becoming a member of BDC Capital. To learn how membership can extend your institution's lending capacity, contact:

Paul F. Flynn, Jr. pflynn@bdcnewengland.com | 781-928-1133

Carol C. Brennan cbrennan@bdcnewengland.com | 413-237-6648