CFG Bank Partners with Arctaris Impact Investors with CRA Investment to Expand Business Lending and Support the Development and Revitalization of Baltimore Communities

CFG Bank (“CFG”), the largest bank headquartered in Baltimore, which provides flexible financing and online banking solutions to the national healthcare and multifamily markets and the Mid-Atlantic commercial banking market, today announced its partnership with Arctaris Impact Investors, LLC (“Arctaris”),  a national impact investment firm with a 15-year track record in underserved communities. CFG invested $3 million in Arctaris Impact Notes within the flagship debt strategy of Arctaris (“Strategy”).

The Strategy provides lower middle-market companies with loans aimed at creating new jobs, promoting diversity in small business ownership, and delivering economic empowerment to communities in need. CFG’s investment will be leveraged through Arctaris’s Baltimore Investment Program, making a significant community impact to drive job growth, revitalize local communities, and improve the quality of life in Baltimore.

“Our commitment to our community is at the forefront of everything we do, and this partnership expands our efforts to improve the lives of others throughout Baltimore,” said Erik Howard, CFG Bank President. “There are not many initiatives like Arctaris’s debt strategy in our region—or in the country—so we are proud to be an active partner in its impact investing efforts to create inclusive opportunities for underserved communities. We look forward to seeing the continued great impact Arctaris’s strategy has on our city.”

“We are very proud to be able to partner with CFG in support of our strategy to invest in the Baltimore community, where we have already made five investments, including our recently announced conversion of the Embassy Suites hotel in partnership with GoodHomes,” said Anita Graham, Managing Director at Arctaris. “Our investments in Baltimore approximate $50M, including the GoodHomes investment, which will generate workforce housing in the Baltimore market.”

CFG joins other leading national and regional banks in purchasing Arctaris Impact Notes as a means of accelerating growth capital to underserved communities, while also earning Community Reinvestment Act (CRA) credit. Arctaris launched its Baltimore program in 2016 in partnership with the Abell Foundation and Neighborhood Impact Investment Fund to increase local investment, and the program has completed six community-centric investments to date.

Jonathan Tower, Founder and Managing Partner at Arctaris added, “We take a holistic approach to community redevelopment that starts by considering the needs of the community and incorporates investments in local businesses and infrastructure as well as addressing housing needs. CFG’s commitment further demonstrates the effectiveness of our strategy to partner with local banks and spur community revitalization.”

Founded in 2009, Arctaris has developed an innovative capital structure that blends public funding from state agencies with private equity and debt capital. Arctaris provides loans to lower-middle-market companies in under-resourced U.S. cities and rural areas. It aims to deliver attractive risk-adjusted returns while achieving measurable economic, social, and environmental impacts. To date, Arctaris investments have enabled minority-owned enterprises to navigate industry challenges, retain vital jobs, and establish sustainable operations that offer fair wages and contribute to local economic resilience.

In addition to partnering with Arctaris, CFG partners with organizations throughout the Maryland area and beyond that are focused on transforming and supporting local communities. Some additional partners include Oak View Group, National Aquarium, Dwyer Workforce Development, Habitat for Humanity of the Chesapeake, Maryland Zoo, Saint Frances Academy, Mother Mary Lange Catholic School, and Boys & Girls Clubs.

To learn more about how CFG transforms what it means to give back to the community, visit https://www.cfg.bank/about/community-involvement/.

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About CFG Bank

CFG Bank, headquartered in Baltimore, Maryland, provides flexible financing and online banking solutions to the national healthcare and multifamily markets and the Mid-Atlantic commercial banking market. CFG Bank is the largest bank headquartered in Baltimore. CFG Bank has grown from $1 billion in assets at the end of 2019 to over $5.3 billion in assets at the end of 2024 and is among the five largest and most experienced healthcare bridge-to-HUD lenders in the country, serving its clients and helping them grow for over 30 years. CFG Bank transforms the banking experience by delivering big bank capabilities and expertise, coupled with relationship-driven boutique bank service. CFG Bank has branches in Lutherville and Baltimore City, and a cashless branch in Annapolis. For more information, visit www.CFG.bank, and follow CFG Bank on LinkedIn, Facebook, Instagram, and X. Member FDIC.

About Arctaris Impact Investors, LLC

Arctaris Impact Investors, LLC is a national impact investment firm with experience spanning more than 15 years. The firm manages funds which invest in growth-oriented operating businesses, real estate, and community infrastructure projects located in underserved communities. Founded in 2009, Arctaris Impact has partnered with the Kresge Foundation, Harvard Business School Professor Michael Porter’s Initiative for a Competitive Inner City, and multiple other foundation, federal and state government agencies to invest in Opportunity Zones, inner cities and targeted rural communities throughout the U.S., with the aim of delivering above-market investment returns alongside positive social impact. For more information visit https://arctaris.com