CDFI Impact Blog

 

 

The Impact of Community Investinghttps://www.cdfifund.gov/impact/Lists/Posts/ViewPost.aspx?ID=29The Impact of Community Investing<div class="ExternalClass256A010AF32C409FB6D920527F79F5B7"><p>One of the most energizing aspects of my job as director of the Community Development Financial Institutions Fund (CDFI Fund) is engaging with a diverse array of stakeholders who care about creating economic opportunity in distressed communities and telling them the CDFI story. I find that too often, the innovative and impactful work of CDFIs, CDEs and other organizations served by the CDFI Fund is not as well understood as it should be. In order to spread the word about this amazing work, we are launching a new feature on our public website: Impact Stories.</p><p>Through Impact Stories, we will spotlight the outcomes that CDFI Fund awardees are achieving in communities across the nation. We will showcase the diverse and essential financial services, lending, and investments CDFIs, CDEs, and other awardees provide every day in distressed and underserved rural, urban, and Native American (including Alaska Native and Native Hawaiian) communities. </p><p>CDFI Fund awardees help <a href="/Documents/Cake%20Appeal%20NACA%20Impact%20Story%20052517.pdf" target="_blank"> entrepreneurs get off the ground </a>and existing <a href="/Documents/Wild%20West%20Boots%20041917.pdf" target="_blank">small businesses grow their operations</a>. They expand access to <a href="/Documents/REVISED%20Nevada%20Idaho%20CDFI%20CMF%20Impact%20Story%20042717.pdf" target="_blank">affordable housing </a>and homeownership for low-income people. They finance healthcare facilities and other vital community centers that assist vulnerable populations, such as <a href="/Documents/BGP%20Clearinghouse%20CDFI%20Impact%20Story%20040317.pdf" target="_blank">disabled veterans</a>. They create access to safe and affordable financial products for those on the margins of the financial system. They develop communications networks and infrastructure to expand critical community services and enhance economic development <a href="/Documents/NMTC%20GreatWave%20Impact%20Story%20041917.pdf" target="_blank">opportunities</a>.</p><p>Of course, no good impact story should be told without data. And we will be using these impact stories to highlight what we are learning from the ever improving data we collect from our awardees.</p><p>The CDFI Fund needs your help in identifying stories and best practices that are having impact in distressed and underserved communities across the nation. Submit your story suggestions to the CDFI Fund <a href="mailto:lea@cdfi.treas.gov" target="_blank">here</a>. </p><p> <i>Interested in seeing more? <a href="https://service.govdelivery.com/accounts/USTREASCDFI/subscriber/new" target="_blank">Sign up to receive CDFI Fund Impact Stories</a> as we release them, or keep an eye on our <a href="/impact/Pages/default.aspx" target="_blank">Impact Blog</a>. And check out our <a href="/Documents/CDFI_7554_YearInReview_2016_FINAL_web%20020617.pdf" target="_blank">FY 2016 Year in Review </a>to learn more about the impact of CDFIs and the CDFI Fund’s programs. Full information about the CDFI Fund’s programs can be found at <a href="http://www.cdfifund.gov/" target="_blank">www.cdfifund.gov</a>.  </i></p><p> <i>Annie Donovan is Director of the CDFI Fund.</i></p></div>Annie Donovan2017-05-25T17:00:00ZFramework for the Future29GP0|#6739e502-ad8d-4e57-bade-8d5d363e66c7;L0|#06739e502-ad8d-4e57-bade-8d5d363e66c7|In the Field;GTSet|#52f34ab0-6f81-4fe6-b393-2715c7089532
CDFI Innovation and Impact in the Deltahttps://www.cdfifund.gov/impact/Lists/Posts/ViewPost.aspx?ID=35CDFI Innovation and Impact in the Delta<div class="ExternalClassD375CE71D6BB4A59B94E4E80578034B8"><p>The Delta region is a very special place in America. Covering more than 250 counties from the tip of Illinois, south to Mississippi, and east into Alabama, the eight-state Delta region is home to ten million people. Its residents are hard-working, resilient, and creative people who care deeply about their communities. The Delta Region is also characterized by persistent and pervasive economic distress—with poverty rates three times the national average and unemployment that is double the national average.</p><p>The CDFI Fund’s programs have played a substantial role in providing access to capital and credit for a variety of critical community needs throughout the Delta region. To date, the NMTC Program has spurred more than $3.3 billion of investment into 345 projects and Community Development Financial Institutions (CDFIs) have loaned or invested more than $5 billion throughout the region. CDFI Fund investments have supported a variety of affordable housing, small business and entrepreneurship, financial education and counseling, and commercial development in the Delta. For a snapshot of the CDFI Fund’s impact in the region, <a href="/SiteCollectionImages/Project%20Images/delta.jpg" target="_blank">click here</a>. </p><p>I have often stated that for the CDFI Fund to be successful in its mission, CDFIs of all types and sizes are needed to address the variety of challenges and obstacles facing communities across the country. The greatest impact can be achieved when CDFIs work in collaboration with a diverse array of organizations in collective pursuit of community and economic revitalization. </p><p>Supporting a diversity of organizations, strategies, and collaborations is critically important in the Delta region. I recently had the opportunity to tour the Delta with certified CDFI Hope Credit Union to see first-hand an array of unique initiatives they have supported in an effort to improve lives in economically distressed parts of the region. Hope Credit Union indicates it has generated over $2 billion in financial and related services for the unbanked and underbanked, entrepreneurs, homeowners, nonprofit organizations, healthcare providers, and other community development purposes. Here is what I saw:</p><hr /><p style="width:48%;text-align:center;font-size:9pt;margin-right:1%;margin-bottom:0.5em;float:left;"> <img src="/SiteCollectionImages/Project%20Images/bynum.jpg" alt="" style="width:100%;" />Hope Credit Union CEO Bill Bynum outside Moorhead, MS branch.</p><p style="width:48%;text-align:center;font-size:9pt;margin-right:1%;margin-bottom:0.5em;float:left;"> <img src="/SiteCollectionImages/Project%20Images/social%20suds.png" alt="" style="width:100%;" />Social Suds co-locates key social services at a community facility.</p><p style="clear:both;"> </p><hr /><p> <b>Crosstown Concourse</b> in Memphis, Tennessee has special significance for me in that it was the <a href="/impact/Pages/BlogDetail.aspx?BlogID=7" target="_blank">very first site </a>I toured upon becoming Director of the CDFI Fund. I was there for the project groundbreaking in 2015. It was inspiring to go back this year to see the progress that has been made. Financed with $56 million in NMTCs from multiple CDEs (Mid-City Community CDE, DV Community Investment, Low-Income Investment Fund, SunTrust CDE, MidWest Renewable Capital, and National Trust Community Investment Corporation), Crosstown is a mixed-use redevelopment of a former retail distribution center. Billed as a “vertical urban village,” it will provide one million square feet of retail space (including a grocery store), restaurants, health clinic, charter high school, art center, commercial offices, and affordable housing. At a total development cost of over $290 million, projected community benefits include the creation of at least 500 permanent jobs and the generation of more than $37 million new wages annually in an area experiencing a 32.9 percent poverty rate and an unemployment rate of 9.4 percent. To support its strategy of increasing access to the banking system for underserved populations, Hope Credit Union will have a branch located in Crosstown Concourse. The project is an exemplar of what can be achieved when a community comes together, and when CDFIs and CDEs work hand-in-hand.</p><p> <b>My Cup of Tea and The House at Orange Mound.</b><a href="https://www.shopmycupoftea.com/our-story" target="_blank"> The House at Orange Mound </a>is a resource center for women in the Orange Mound community in Southeastern Memphis. Developed in the late 1800s, Orange Mound is one of the oldest African American neighborhood in the United States. The community experienced challenges and decay through the 1970s and 1980s, but community-led revitalization efforts have begun to reinvigorate this area. Working with women from the Orange Mound community, volunteers and staff teach computer literacy, child-rearing education, GED training, job readiness, cooking, sewing, gardening, and other domestic skills to women who have limited knowledge and marginal exposure to home economics, parenting models, and employment. An initiative of the House at Orange Mound, My Cup of Tea is a small business that packages and distributes tea and provides area women job skill training, mentoring and valuable experience running a small business. To enhance economic inclusion opportunities, Hope Credit Union supports Orange Mound efforts by providing financial education and on-site account opening to program participants.</p><p> <b>Social Suds Resource Center</b> is a laundromat managed by the <a href="http://www.smaweb.org/" target="_blank">South Memphis Alliance</a>. The South Memphis Alliance (SMA) opened in 2000 to help organize neighborhood associations in the urban communities of South Memphis. Over time, SMA expanded to serve youth in foster care and families in need. Located next door to the SMA office, <a href="http://www.smaweb.org/our-work/stand-by-me/" target="_blank">Social Suds </a>provides a space for families to receive information from non-profit and government agencies while utilizing the facility. Again, as part of its economic inclusion activities, Hope Credit Union provides financial education and on-site account openings to SMA clients as part of a one-stop model for community services. </p><p>These businesses and projects are but a few of the many community revitalization and economic development initiatives that CDFIs and CDEs support in the Delta region on an ongoing basis. The CDFI Fund is proud to serve as a partner and facilitator in the continuing efforts to invest in community and economic development opportunities throughout the Delta region.</p><p> <i>Annie Donovan is Director of the Community Development Financial Institutions Fund</i></p></div>Annie Donovan2017-09-01T16:00:00ZLocal Impact35GP0|#1df1c2cf-45f2-4333-8365-93be361333ee;L0|#01df1c2cf-45f2-4333-8365-93be361333ee|Mississippi;GTSet|#52f34ab0-6f81-4fe6-b393-2715c7089532;GP0|#7b1b324b-5c91-4ed6-af66-b40a11835afb;L0|#07b1b324b-5c91-4ed6-af66-b40a11835afb|Credit Unions;GP0|#6739e502-ad8d-4e57-bade-8d5d363e66c7;L0|#06739e502-ad8d-4e57-bade-8d5d363e66c7|In the Field
CDFI Fund Director Donovan Participates in National Small Business Weekhttps://www.cdfifund.gov/impact/Lists/Posts/ViewPost.aspx?ID=23CDFI Fund Director Donovan Participates in National Small Business Week<div class="ExternalClassA53793876EB8467486890F17060B44BE"><p>Small businesses are key to our economy, significantly contributing to job growth and income in the U.S. According to the U.S. Small Business Administration (SBA), more than half of Americans either own or work for a small business, and they create about two out of every three new jobs in the U.S. each year. </p><p>Community Development Financial Institutions (CDFIs) and Community Development Entities utilize the CDFI Fund’s various programs to finance small businesses and support entrepreneurship and job creation in underserved communities nationwide. Since 2009, CDFI Program awardees have originated 88,173 small business <a href="#loans">loans</a> totaling $3.28 billion. The New Markets Tax Credit Program has also provided funding for 691 projects for small businesses totaling $276,501,094 since Fiscal Year 2003.</p><p>In recognition of <a href="https://www.sba.gov/nsbw/" target="_blank">National Small Business Week </a>and to highlight how CDFIs and CDEs help create and sustain small businesses, CDFI Fund Director Annie Donovan visited Rito Loco, a food truck to store front success story, and their CDFI partner, the <a href="http://ledcmetro.org/es/about-ledc/mission" target="_blank">Latino Economic Development Center</a> (LEDC), both of which are based in Washington, DC.</p><p>Danny Diaz and Louie Hankins started <a href="https://ritoloco.com/" target="_blank">Rito Loco </a>in 2012 (Rito is short for burrito). After a wildly successful ride with the food truck, the two partners decided to open a brick-and-mortar location in Washington, DC’s Shaw neighborhood in August of 2015. In September of 2016, Dan and Louie approached LEDC for support to expand the restaurant and make other capital improvements. </p><hr /><p style="width:48%;text-align:center;font-size:9pt;margin-right:1%;margin-bottom:0.5em;float:left;"> <img src="/SiteCollectionImages/Project%20Images/RitoLoco%20Site%20Visit%202.png" alt="" style="width:100%;" />Rito Loco Co-Owner Louie Hankins shares the rooftop expansion plans.</p><p style="width:48%;text-align:center;font-size:9pt;margin-right:1%;margin-bottom:0.5em;float:left;"> <img src="/SiteCollectionImages/Project%20Images/RitoLoco%20Site%20Visit%201.png" alt="" style="width:100%;" />LEDC Executive Director Marla Bilonick discusses their financing of Rito Loco with CDFI Fund Director Donovan.</p><p style="clear:both;"> </p><hr /><p>Director Donovan and LEDC Executive Director Marla Bilonick visited with Louie at Rito Loco’s soon-to-open new rooftop. LEDC’s $20,000 construction bridge loan filled a critical financing gap. Now, Rito Loco will triple the capacity of the restaurant and hire five to eight new employees. In addition to the bridge loan, LEDC helped Dan and Louie with technical assistance navigating the DC’s Great Streets capital improvement grant program. Overlooking the now bustling Shaw neighborhood, the three discussed the challenges and rewards of running a small business.</p><p>Please visit these links to learn how the <a href="/Documents/CDFI_infogrpahic_v03Aaf.pdf" target="_blank">CDFI Fund’s programs work </a>and <a href="/Documents/CDFI_7374_infographics_final.pdf" target="_blank">how the CDFI Fund’s programs can help your community;</a> or visit our website at <a href="http://www.cdfifund.gov/" target="_blank">www.cdfifund.gov</a>. </p><p> <i>Bill Luecht is the Senior Advisor for Legislative and External Affairs at the CDFI Fund.</i></p></div><hr /> <footer> <ol><li id="loans"> <i>The CDFI Fund utilizes the FDIC’s definition of small business loans across all its programs. Small business loans are defined as business or micro loans under $1 million. </i></li><p> </p></ol> </footer> Bill Luecht2017-05-03T15:00:00ZLocal Impact23GP0|#bd2515a1-c2d0-4340-a0cf-e5a5c375a274;L0|#0bd2515a1-c2d0-4340-a0cf-e5a5c375a274|District of Columbia;GTSet|#52f34ab0-6f81-4fe6-b393-2715c7089532;GP0|#6739e502-ad8d-4e57-bade-8d5d363e66c7;L0|#06739e502-ad8d-4e57-bade-8d5d363e66c7|In the Field;GP0|#b175ca6f-ecaa-427d-bc7a-677b5c37cbff;L0|#0b175ca6f-ecaa-427d-bc7a-677b5c37cbff|Small Business