X-Caliber Rural Capital - Comprehensive Analysis Report

Summary

X-Caliber Rural Capital (XRC) is a national, licensed USDA lender formed in 2021 as an affiliate of X-Caliber Capital. Its mission is to provide capital solutions for businesses and communities in rural areas, funding the health and development of these regions. XRC stands out as the nation's largest non-bank USDA lender.

1. Strategic Focus & Objectives

Core Objectives

X-Caliber Rural Capital aims to offer attractive financing solutions to borrowers and meet the needs of rural communities across the country.

The company seeks to stimulate economic development and job creation in rural areas through its investments.

XRC is dedicated to helping clients leverage the right programs to fuel their business and project goals.

Specialization Areas

X-Caliber Rural Capital specializes in financing mid- to large-scale commercial and community infrastructure projects in rural areas.

The company provides purchase, refinance, and construction-to-permanent financing.

XRC offers longer terms, optional fixed rates, and more flexible underwriting compared to traditional banks.

Target Markets

X-Caliber Rural Capital focuses on rural businesses and communities, as defined by the USDA (any town, village, city, or population center with 50,000 or fewer people and not contiguous with another populated area).

XRC supports project types including manufacturing, healthcare, hospitality, agricultural processing, public works, infrastructure, and renewable energy.

2. Financial Overview

Funding History

X-Caliber Rural Capital received agency approval for over $400 million in funding for fiscal year 2023, including the temporary Food Supply Chain loan program.

3. Product Pipeline

Key Products/Services

Business and Industry Guaranteed Loan Program (B&I): A general-purpose program financing any legitimate business purpose.

Rural Energy for America Guaranteed Loan Program (REAP): Finances renewable energy systems and energy-efficient equipment.

Community Facilities Guaranteed Loan Program (CF): Provides financing for any municipality or non-profit project serving a public purpose.

Water and Waste Disposal Guaranteed Loan Program (WWD): Finances clean, reliable water and waste disposal systems.

Loan sizes range between $250,000 and $100 million for new construction, acquisition, and refinance transactions, depending on the program. The maximum dollar amounts for the programs are: B&I (up to $25 million), REAP (up to $25 million), Food Supply Chain Guaranteed Loan (up to $40 million), WEP (up to $50 million), and CF (up to $100 million).

4. Technology & Innovation

Technology Stack

X-Caliber Rural Capital utilizes its expertise across the four products under the USDA OneRD Guarantee Loan Initiative.

They offer Debtquity, a product option allowing an applicant to substitute costly third-party equity with a debt product.

XRC combines USDA lending with X-Caliber’s bridge and Commercial Property Assessed Clean Energy (C-PACE) platforms.

5. Leadership & Management

Executive Team

Anna West: President; oversees the daily operations of the company's USDA OneRD lending platform.

Jordan Blanchard: Co-Founder.

Adna Avdovic: Senior Accountant.

Angela Kotsubey: Vice President, Divisional Controller.

Becky Smith: Senior Construction Loan Manager.

Brooke Conway: Loan Servicer.

Brooke Landry: Construction Loan Administrator.

Courtney Donovan: Assistant Vice President, Servicing and Asset Management.

Deede Bell: Director of Operations.

Dustin Frye: Vice President Operations, Loan Origination and Processing.

Harmony Harward: Executive Assistant.

Jasmine Taylor: Director of Staff and Business Operations.

Jennifer Larsen: Vice President, Sustainability Finance.

Joni Turquand: Vice President, Loan Administrator.

Julie Witherspoon: Vice President, Underwriting.

Kara Bahnsen: Portfolio Manager.

Nick Worley: Portfolio Analyst.

Olivia Rever: Assistant Vice President, Servicing and Asset Management.

Patricia Hernandez: Vice President, Loan Administrator.

Perri Kaplan: Loan Closing Coordinator.

Chris Callahan: President and Chief Executive Officer of X-Caliber.

Sharon Callahan: Co-Founder of X-Caliber.

Jeff Goldberg: Chief Credit Officer, Executive Managing Director.

Mike Hammond: Executive Managing Director, Origination.

Amber Howard: Chief Operating Officer.

Daniel Teplin: Chief Legal Officer.

Bonnie Habyan: Chief Marketing Officer.

Bobby Nadella: Chief Financial Officer.

Joel Karczewski: Chief Technology Officer.

Pamela Gilchrist: Chief Human Resources Officer.

Recent Leadership Changes

In January 2024, Anna West was appointed as President of X-Caliber Rural Capital. Previously she held the position of Executive Managing Director.

6. Competitive Analysis

Major Competitors

X-Caliber Rural Capital competes with other USDA lenders. However, it distinguishes itself through its expertise, expansive project types, and ability to offer larger loan amounts.

7. Market Analysis

Market Overview

X-Caliber Rural Capital operates within the rural lending market, supported by USDA programs to stimulate economic development and job creation in rural areas. Ongoing demographic changes are expected to continue encouraging growth in rural businesses.

8. Strategic Partnerships

X-Caliber Rural Capital partners with organizations such as American Lending Center (ALC) to support economic development in rural communities. They also work with T-Rex Capital Group LLC and L'Anse Warden Electric Company.

9. Operational Insights

X-Caliber Rural Capital offers higher leverage with extended amortization, longer terms with fixed rates, and flexible underwriting. Their USDA expertise provides structure guidance and an efficient application process.

10. Future Outlook

Strategic Roadmap

X-Caliber Rural Capital is focused on providing capital solutions for the country's businesses and communities. They aim to be a leader in the industry by executing financial lending solutions for various property types and projects across rural America.