Ready Capital Announces Acquisition of Madison One

Core Insights - Ready Capital Corporation has acquired Madison One Capital, M1 CUSO, and Madison One Lender Services, enhancing its position in the government guaranteed loan industry, particularly in USDA and SBA loan products [1][2][5] Group 1: Acquisition Details - The acquisition aims to expand Ready Capital's presence in USDA lending, supporting guaranteed loans for small businesses and energy projects in rural areas [2] - Madison One will operate as a subsidiary under its current name, with its team remaining intact and reporting to ReadyCap Lending's CEO [3][4] Group 2: Financial Impact - The transaction is expected to generate over $300 million in USDA loan volume annually, contributing to Ready Capital's gain-on-sale earnings [5] - Ready Capital is already the fourth largest originator of SBA 7(a) loans, indicating a strong foothold in the small business lending market [2] Group 3: Strategic Benefits - The partnership is anticipated to provide Madison One with a direct balance sheet, facilitating growth in its USDA platform and offering more flexible financing options for rural clients [5] - The acquisition is expected to create synergies that will enable Madison One to extend more capital into rural America [5]