Eastern Bank Announces DPV Transportation (DPV) As A Commercial Banking Customer

Rhea-AI Summary

Eastern Bank provides $6 million in financing to DPV Transportation for business growth. DPV receives a $5 million equipment line of credit and a $1 million revolving line of credit to support expansion. MassDevelopment contributes $6 million in loan financing. DPV, a minority-owned ground transportation business, has evolved with new innovations and practices, including a customized mobile application for safety and comfort.

Insights

Market Research Analyst

The announcement of Eastern Bank's provision of a $5 million equipment line of credit and a $1 million revolving line of credit to DPV Transportation, Inc. signals a strategic expansion for the company. This financial backing is indicative of the bank's confidence in DPV's business model and its growth trajectory. The support from Eastern Bank, coupled with the additional $6 million in loan financing from MassDevelopment, suggests a favorable business environment and potential job creation in the region.

From a market perspective, the transportation sector is critical to economic activity and DPV's position as the largest minority-owned ground transportation business in New England highlights the company's significant role in the local economy. The introduction of innovative technologies like a customized mobile application with real-time tracking capabilities positions DPV to meet the evolving demands of corporate clients and may lead to increased market share.

Financial Analyst

The lines of credit provided to DPV Transportation by Eastern Bank represent a substantial capital infusion that can be leveraged for purchasing new vehicles and supporting working capital needs. This capital injection is likely to improve DPV's operational capabilities and enable the company to scale up its services. The financial arrangement also underscores the importance of strategic partnerships between financial institutions and growing businesses, especially those in economically disadvantaged areas.

Investors and stakeholders should monitor DPV's financial performance following this expansion to assess the efficacy of the capital use. The success of this investment could serve as a case study for similar financing packages in the future and reflect on Eastern Bank's commercial banking strategy.

Economist

The collaboration between Eastern Bank, MassDevelopment and DPV Transportation is an example of public-private partnerships driving economic development. The involvement of MassDevelopment and the utilization of federal resources from the State Small Business Credit Initiative (SSBCI) to support DPV Transportation aligns with broader economic goals of stimulating growth and employment within socially and economically disadvantaged areas.

This initiative could potentially stimulate local economies by creating jobs and increasing demand for related services. The long-term economic implications may include increased economic activity and improved socio-economic conditions in the regions where DPV operates. The success of such initiatives could encourage further investments in minority-owned businesses and contribute to a more inclusive economy.

Provides Capital To Support Future Business Growth

BOSTON--(BUSINESS WIRE)-- Eastern Bank is pleased to announce global ground transportation company DPV Transportation, Inc. (DPV) as a new commercial banking customer. Headquartered in Everett, MA, DPV is the largest certified minority-owned ground transportation business in New England operating a fleet of over 80 vehicles from Greater Boston to New York and employing hundreds of people. After working with Eastern Bank as a small business banking customer during its start-up, DPV is now transitioning to the bank’s commercial banking portfolio. Eastern Bank is providing a $5 million equipment line of credit for growth capital to support the purchase of new vehicles and a $1 million revolving line of credit to support the company’s ongoing working capital and general corporate needs.

DPV is a past participant in the Foundation for Business Equity’s Business Equity Initiative, which Eastern incubated in 2017 to support the growth of businesses owned by people of color. After gaining access to quality capacity building, business networking and high touch strategic advisory services, DPV evolved its business model with new innovations and practices, such as a customized mobile application with real-time tracking capabilities, to bolster safety and comfort for its corporate client base.

“What began as a humble venture, shuttling athletic teams, has now evolved a decade and a half later into a thriving enterprise that moves Fortune 100 corporations and industry-leading clients forward through safe, state-of-the-art ground transportation,” said Daniel Perez, Founder and CEO of DPV Transportation. “We value Eastern’s commercial banking transportation industry expertise and how it has supported the growth of our company in providing more than just capital, by also serving as a trusted business resource.”

MassDevelopment, the state’s development finance agency and land bank working with businesses, banks and communities to stimulate economic growth across the Commonwealth, contributed another $6 million in loan financing through the State Small Business Credit Initiative (SSBCI), which provides loans and guarantees with flexible terms that focus on businesses within socially and economically disadvantaged areas and/or businesses owned and controlled by socially and economically disadvantaged individuals.

“This financing will help DPV Transportation grow, meet demand for its services and create new jobs,” said MassDevelopment President and CEO Dan Rivera. “MassDevelopment is proud to deliver federal resources from the State Small Business Credit Initiative to help entrepreneurs and emerging companies expand their footprint in Massachusetts. By working with community-focused banks like Eastern Bank, we are able to create financing packages that meet the needs of our clients.”

Greg Buscone, Executive Vice President, Chief Commercial Banking Officer of Eastern Bank, added, “MassDevelopment leads important work involving the expansion of businesses in our community, and we appreciate their additional financing as we proudly announce DPV Transportation as a commercial banking customer. It has been exciting to see how the company has developed through the years from a smaller enterprise to a larger business, and we look forward to supporting its growth.”

Eastern Bank provides a range of commercial financing offerings to help companies across many industries improve cash flow, increase efficiencies and build for the future. Commercial lending solutions include working capital/lines of credit, equipment/term loans, real estate loans, acquisition financing, asset-based lending and employee stock ownership plan-related financing.

The Commercial Banking team advising DPV Transportation includes Executive Vice President, Chief Commercial Banking Officer Greg Buscone; Senior Vice President and Commercial Group Director Dan Field; Senior Vice President and Commercial Relationship Manager David Nussbaum; and Commercial Portfolio Manager Tom Barcikowski.

Surfside Capital Advisors served as financial advisor to DPV Transportation.

About Eastern Bank

Founded in 1818, Boston-based Eastern Bank has more than 120 locations serving communities in eastern Massachusetts, southern and coastal New Hampshire, and Rhode Island. As of December 31, 2023, Eastern Bank had approximately $21 billion in total assets. Eastern provides a full range of banking and wealth management solutions for consumers and businesses of all sizes, and takes pride in its outspoken advocacy and community support that includes $240 million in charitable giving since 1994. An inclusive company, Eastern is comprised of deeply committed professionals who value relationships with their customers, colleagues, and communities. Join us for good at www.easternbank.com and follow Eastern on Facebook, LinkedIn, X and Instagram. Eastern Bankshares, Inc. (Nasdaq Global Select Market: EBC) is the stock holding company for Eastern Bank. For investor information, visit investor.easternbank.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240306285138/en/

Media:

Andrea Goodman

Eastern Bank

a.goodman@easternbank.com

781-598-7847



Investor:

Jill Belliveau

Eastern Bankshares, Inc.

InvestorRelations@easternbank.com

781-598-7920

Source: Eastern Bank

FAQ

What financing is Eastern Bank providing to DPV Transportation?

Eastern Bank is providing a $5 million equipment line of credit for growth capital and a $1 million revolving line of credit to support the company's ongoing working capital and general corporate needs.

What is the contribution from MassDevelopment to DPV Transportation?

MassDevelopment is providing $6 million in loan financing through the State Small Business Credit Initiative to help DPV Transportation grow, meet demand for its services, and create new jobs.

What innovations has DPV Transportation implemented?

DPV Transportation has implemented new innovations and practices, such as a customized mobile application with real-time tracking capabilities, to bolster safety and comfort for its corporate client base.

Who are the key members of the Commercial Banking team advising DPV Transportation at Eastern Bank?

The Commercial Banking team advising DPV Transportation includes Executive Vice President, Chief Commercial Banking Officer Greg Buscone; Senior Vice President and Commercial Group Director Dan Field; Senior Vice President and Commercial Relationship Manager David Nussbaum; and Commercial Portfolio Manager Tom Barcikowski.