First Internet Bank and ApplePie Formalize New Partnership
San Francisco – First Internet Bank and ApplePie Capital today announced a loan purchase agreement to provide financing solutions for franchisees.
Under the agreement, First Internet Bank expects to purchase $100 million of ApplePie’s growth-oriented “ApplePie Core'' conventional loans by year end. First Internet Bank opened for business in 1999 as an industry pioneer in the branchless delivery of banking services and today offers a comprehensive suite of financial solutions for consumers and small business owners nationwide. The first online lender focused on the franchise industry, ApplePie is now the leading provider of innovative growth financing for the franchise industry.
The partnership is the latest commitment First Internet Bank has made to meet the financial needs of entrepreneurs and small business owners. First Internet Bank has one of the nation’s fastest-growing Small Business Administration (SBA) programs, as well as the nation’s best checking account for small business owners as rated by Newsweek.
“As a lifelong entrepreneur, I know the value of working with a bank that understands the challenges and rewards business owners face,” said David Becker, Chairman and CEO of First Internet Bank. “First Internet Bank is committed to providing small business owners access to holistic financial services and thoughtfully designed digital experiences. We are excited to join forces with ApplePie to help provide franchisees with the unique financing solutions they need to succeed.”
Through its partnerships with exceptional, fast-growing franchise brands, ApplePie sources and originates high-quality franchisee lending opportunities in all 50 states for new franchise locations, acquisitions, remodels, refinances and equipment, or to recapitalize existing businesses to accelerate growth. In addition to lending, ApplePie also helps its brand partners solve a wide variety of capital markets challenges to foster predictable, sustainable growth.
“ApplePie started with a really simple idea - making it easier for the best franchise brands and their franchisees to access the capital they need to grow.” said Denise Thomas, ApplePie CEO and co-founder, “And since 2015, we’ve done just that, with over $1.25 billion dollars funded across 200+ franchise brands. This agreement helps ApplePie continue our mission while also providing First Internet Bank with quality credits in proven businesses.”
The franchise industry is a strong segment of the U.S. economy with rapidly rebounding capital demand as the country emerges from the pandemic. The 2021 Economic Outlook for Franchising from FRANdata and the IFA projects that more than 26,000 new franchised businesses will open in 2021, recovering most of the losses felt in the previous year. Franchises will employ some 8.3 million people, adding nearly 800,000 new jobs and $477 billion to the economy.
About First Internet Bank
With assets of $4.2 billion as of June 30, 2021, the Bank provides consumer and small business deposits, consumer loans, residential mortgages and specialty finance services nationally. The Bank also offers commercial real estate loans, commercial and industrial loans, SBA financing and treasury management services. Additional information about the Bank, including its products and services, is available at www.www.firstib.com. The Bank is a wholly-owned subsidiary of First Internet Bancorp (Nasdaq: INBK). First Internet Bank is a Member FDIC.
About ApplePie Capital
Headquartered in San Francisco, ApplePie Capital’s franchise loan marketplace brings a new economy to franchise financing, enabling single- and multi-unit franchisees to efficiently obtain financing to start or expand their franchise business. ApplePie Capital also enables investors to earn attractive fixed-income returns with established high-quality franchise brands. Since it started lending in January 2015, ApplePie has formed partnerships with 60 franchise brands and facilitated the funding of over $1.25 billion in franchise loans. For more information, visit www.applepiecapital.com.