New York dental insurance company is about to get $20 million in federal loans, and we’re all ready for it
A dental insurance startup that has raised $20M in a Series A round from a bunch of well-known investors is about on pace to receive more than $20MM in loans from the Department of Housing and Urban Development.
The loan package from the Office of Management and Budget is part of a larger $1.6 billion loan package that will provide grants to local community-based agencies, including a $3.3M loan to the Central Park Community Food Pantry, according to a regulatory filing from the OMB.
As we’ve previously reported, the new $20m funding round from Goldman Sachs, led by co-founder Michael L. Ochsner, includes another $1 million in private equity and $5 million in venture capital, all for the company.
“The $20 Mn loan package is part, in large part, of the larger $2.2 Mn grant program announced today to support the implementation of the Trump Administration’s Housing First program,” Leland M. Newman, chief financial officer of OMB’s Housing and Community Development, said in a statement.
According to the filing, the Ombudsperson’s Office is looking to “facilitate the implementation and deployment of Housing First policies and practices to support local housing markets.”
The Housing First initiative requires that all housing units be privately rented, and is currently only in effect in six US cities: Cleveland, Detroit, Milwaukee, Minneapolis, New York City, and Philadelphia.
This latest round of funding is part.
In February, Goldman Sachs partnered with OMB to invest in a company called Urban Renewal to develop and test new technology for providing affordable housing to those who are in need.
The partnership also involved the private sector, including the Ochseners, and the OChsners are now also working on their own investment fund.
Meanwhile, the startup has raised a total of $10.4 million in funding, including funding from Accel Partners, Accel Global Partners, and Accel Venture Partners.
Ochsners initial funding for the $20-million fund came from a $1 billion seed round that he previously had with Goldman Sachs.
More from the New York Times: It has become fashionable to view the mortgage-related industry as a monopoly, a product of a long-established banking industry that, by definition, was designed to serve the needs of the wealthy.
But for the most part, the industry has been, in fact, built on the backs of hard-working homeowners, according a new analysis of more than 2,000 mortgages by the Federal Reserve Bank of New York.
A report from the Federal Deposit Insurance Corp. found that the mortgage market has been a boon for the banks, as they have built the business model that drives the mortgage industry, while charging borrowers higher interest rates and locking them into higher debt obligations.
The report found that, over the past three decades, the average rate of interest for mortgages with a loan-to-value ratio of at least 10% has increased from 4.7% to 10.6%.
In a statement, Mr. OCHSNER said he had been looking for opportunities to invest and accelerate the creation of a new financial product for homeowners that would help them earn more.
He added that, “We are pleased to have secured a $20 Million Series A funding round that will enable us to grow our product to deliver more affordable and sustainable solutions to homeowners, including mortgage-backed securities, and also to continue to build the foundation of a sustainable and diversified financial industry that will allow the industry to flourish.”