Commercial lender CapitalSource Inc said it acquired MainStreet Lender LLC, a Small Business Administration (SBA) lender, for $100 million to expand its product offering.
The deal includes the purchase of a $111 million portfolio of small balance SBA and conventional loans, and a non-bank SBA license, servicing rights associated with the bank-acquired portfolio, CapitalSource said in a statement.
This acquisition is consistent with our articulated strategy of building our franchise with asset origination platforms that focus on commercial lending, said John Delaney, executive chairman of CapitalSource.
Chevy Chase, Maryland-based MainStreet Lender makes loans of $250,000 to $6 million and has originated over $3 billion of small business loans, according to the company website.
MainStreet's Chief Executive George Harrop will join CapitalSource to lead the SBA lending team.
(Reporting by Sweta Singh in Bangalore; Editing by Gopakumar Warrier)