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Rob Cerne, Owner Seascape Technologies
Intevation Food Group, Plover, Wisconsin
Financing ResourcesFinancing Resources
Community Development Financial Institutions (CDFI’s)
Community Development Entities (CDE’s)
Community Development Community Development Financial Institutions (CDFI’s)Financial Institutions (CDFI’s)
US Treasury-certified specialized financial institution that works in market niches, often economically distressed areas
Include both regulated community development banks and credit unions & non-regulated institutions such as loan and venture capital funds
Results.Results.
Wisconsin CDFI’s had more than $400 million in loans outstanding at the end of 2009. Examples include:
Results…Results…
Northwest Side Community Development Corporation has lent more than $3.2 million, creating more than 500 jobs (Milwaukee)
Wisconsin Women’s Business Initiative Corporation – average loan
created 2.7 jobs and retained 5.8 more
ResultsResults
Forward Community Investments (statewide loan fund for non-profits) loans resulted in the development of 1,200 units of affordable housing and creation/retention of 3,000 jobs
Community Assets for People has lent more than $10 million in housing loans and $4.5 million in business loans
Demand for CapitalDemand for Capital
Demand is high – ◦Community Assets for People – business loan
portfolio of $6 million at the end of 2010◦$900,000 in business loans deployed in 2010;◦Over $750,000 to date in 2011 with almost
$800,000 in loans now in the pipeline◦Since 1991, 590 households purchased homes
with deferred loan of more than $10 million◦Project to help an additional 20 in 2011.
Demand for Capital Demand for Capital
The US Treasury – CDFI Fund 2011 Application Round – New Market Tax Credit Program14% increase in requests over 2010314 applications, the most since 2002 when the program began
$26.7 billion in requests for $3.5 billion in resources – almost a 7 to 1!
New ToolsNew Tools
The Wisconsin Legislature is moving forward on legislation (AB 211) that would create tax credits for investments in CDFi’s in Wisconsin.
Investments of at least $10,000 for 5 years would net a 10% tax credit (12% for investments of $150,000-$500,000)
New ToolsNew Tools
Starbucks – Create Jobs for USA.Americans themselves would invest
in small business. Those who donate $5 or more get a red-white-blue wristband labeled “indivisable.”
Starbucks will use CDFI’s as its financial partner. Starting off with
a $5 million donation.