Inside $75 Million in CDFI Fund 2 Director’S Viewpoint Native American Awards Lending Study/ Reasury Secretary Action Plan Trobert E

Fall 1998, Volume 1, Number 2

Secretary Rubin Announces Inside $75 Million in CDFI Fund 2 Director’s Viewpoint Native American Awards Lending Study/ reasury Secretary Action Plan TRobert E. Rubin on Individual Develop- Monday, September 28, ment Accounts 1998, recognized the recipients of the Community De- 3 New Faces velopment Financial Institu- tions (CDFI) Fund’s 1998 Calendar of Events awards. The awards, totaling $75 CDFI Fund Director Ellen Lazar and Treasury 4 Notes from the Field million, were awarded to 190 Secretary Robert Rubin announce the 1998 CDFI Fund Awards on September 28, 1998 in banks, thrifts and community Washington, DC. development financial institu- 9 AmeriCorps*VISTA - tions through the Fund’s What is a Allowable Cost Bank Enterprise Award Pro- Within CDFI grants gram and the CDFI Program Certified CDFI? Core and Technical Assis- by Joseph Firschein 11 BEA as a Fundraising tance Components. “The CDFI Fund is help- he following are answers to some frequently asked Tool ing to rebuild communities T across the country,” said questions about CDFIs, the certification process, and its benefits: Secretary Rubin. “By filling niches in the private financ- Q: What does it mean to be ing market and by drawing certified as a CDFI? A: Certification as a CDFI mainstream financial institutions into underserved com- means that an organization meets CDFI eligibility requirements. An munities through partner- organization must have a primary Department of the Treasury ships, the CDFI Fund’s award recipients help to mission of promoting community make our financial system (continued on page 10) work better for all of us.” “The existence of the CDFI Fund Technical CDFI Fund Director Lazar Assistance Grant Program is an invaluable resource for emerging organizations to receive Community Development introduced three awardees, the help they need in improving their Financial Institutions Fund representing the three cat- operations and enhancing their impact in the 601 Thirteenth Street, NW egories of awards: JoAnn communities they are committed to serving.” Suite 200 South Ollyn J. Lettman Washington, D.C. 20005 Kane, Executive Director, Executive Director, McAuley Institute, Silver Community First Fund (continued on page 6) • Director’s Viewpoint • • • Ellen Lazar ver the past several Native American O months, I have traveled throughout the country speaking at and participating in confer- Lending Study/ ences, visiting our awardees and Action Plan learning about their programs (see by Rodger Boyd pages 4 and 5). I have had the opportunity to witness the tremen- dous efforts being undertaken by hen Congress autho- community development organi- Wrized the CDFI Fund zations and financial institutions in 1994, it mandated a study on nationwide to address the com- lending and investment prac- plex problems that face our com- tices on Indian reservations munities. and other land held in trust by the United States. The com- In urban centers, small towns, rural and Native American communi- ponents of the study are: (1) ties alike, there is a need for access to capital and financial services. identify barriers to private fi- Banks, thrifts and CDFIs across the country are helping communi- nancing; (2) identify the impact ties to meet the capital needs of budding entrepreneurs, new of such barriers on access to homebuyers, and others. capital and credit for Native American population; (3) rec- There are now 262 certified CDFIs. Our pipeline of certification appli- ommend necessary statutory cant organizations continues to grow. CDFIs are a vital, dynamic and regulatory changes to ex- partner in asset building in communities. In this issue of CDFI Quar- isting Federal programs; and terly, our lead story (cover page) features Treasury Secretary Rubin’s (4) make policy recommenda- announcement of the CDFI Fund’s $75 million in awards made to 190 tions for community develop- organizations nationwide. A complete listing of the awards can be ment financial institutions. found on pages 6 and 7. I also encourage you to visit our website Over the next few months, “www.treas.gov/cdfi” where you will find descriptions of the awardees an action plan to complete the and highlights from the 1998 round of awards. study will be formulated. To I am also delighted to report that Rodger Boyd joined our staff to implement the Action Plan, the head the development of our Native American Lending Study/Action Fund will be consulting with Plan. Rodger’s experiences with community and economic develop- many groups, including Tribal ment issues in Native American communities are unique, and will institutions, other federal agen- assist him in his endeavors with the Fund. We look forward to the cies, community and financial positive impact that this effort will bring. organizations In July, the CDFI Fund launched the Interagency Workgroup on Microenterprise Development, which I co-chair with Betsy Myers, Associate Deputy Administrator, Small Business Administration. We Individual are making progress in our directive from the President to better co- Development ordinate federal programs that involve micro-lending and microenterprise development. We will provide a report on our activi- Accounts ties in our next issue. I am also happy to report that our FY ‘99 appropriation is $95 million, In October 1998, the Presi- a 19% increase over FY ’98. We will ensure that these funds are put dent signed into law, legislation to work in the coming year to help achieve our mission and goals. that will enable the Administra- tion to create Individual Devel- I encourage you to keep in touch with us -- and help us ensure that opment Accounts (IDAs), a sav- we meet our goals. (continued on page 8)

2 • 1998 - 1999 Calendar of New Faces at CDFI Fund CDFI Program Core Component: NOFA Published Oct 26, 1998 he CDFI Fund wel- Application Deadline Jan 21, 1999 T comes several new Awards Announced July 1999 employees who have joined in our mission to promote access Intermediary to capital in America’s dis- Component: NOFA Published Oct 26, 1998 tressed communities. The fol- Application Deadline Jan 19, 1998 lowing includes only recently Awards Announced May 1999 hired senior and program staff: Technical Assistance • Jeffrey Berg, Legal Component: NOFA Published Jan 1999 Counsel, formerly Assistant Application Deadline Apr 1999 General Counsel for the Enter- Awards Announced July 1999 prise Foundation • Rodger Boyd, Pro- gram Manager, formerly Vice President of Fortech Develop- BEA Program ment Company. He is a mem- ber of the Navajo Tribe. NOFA Published Sept 1, 1998 • Sarah Crowley, Finan- Application Deadline Nov 24, 1998 cial and Programs Analyst, for- Final Report/Deadline July 1999 merly Presidential Management Awards Announced Sept 1999 Intern at the US Environmental Protection Agency • Steven Laughton, Presidential Awards for Excellence Deputy Legal Counsel, formerly Senior Attorney in the in Microenterprise Development Treasury’s Financial Manage- Competition Opens Apr 1999 ment Service Application Deadline July 1999 • Rosa Martinez, Finan- Awards Announced Nov 1999 cial and Programs Analyst, formerly at the Ford Foundation in New York • Yoo Jin Na, Financial • Pamela Williams, • Sean Zielenbach, and Programs Analyst, for- Financial and Programs Financial and Programs merly a Banking Officer in the Analyst, formerly Associate Analyst, formerly with Midwest Community Finance National Bank Examiner, Of- LISC in Chicago where Group at Bank of America fice of the Comptroller of the he was also finishing • Margaret Nilson, Pro- Currency his Ph.D. at Northwest- gram Advisor, formerly a Finan- • Margaret Woolley, ern University cial Economist at the Office of Financial and Programs Financial Institutions Policy Analyst, formerly a Financial • Michael Troop, Legis- Economist at US Treasury’s lative Affairs, formerly in legis- Office of Financial Institu- lative affairs for the Savings tions Policy and Community Bankers

3 • Notes from the Field • • •

Ellen Lazar speaking at the dedication ceremony of uring the past few months, CDFI the Family Practice Center of the Jamaica Hospital in Fund Director Ellen Lazar and Queens, NY. The CDFI Fund awarded $2.5 million to D the Primary Care Development Corporation which, in Deputy Director Maurice Jones have had turn, helped finance the Family Practice Center. the pleasure of witnessing the work and Surgeon General Dr. David Satcher (seated far left) was a featured guest at the event. accomplishments of the Fund’s awardees. In addition, the Fund’s program staff has traveled throughout the country to complete the site visits necessary to make the CDFI Program Core Compo- nent Awards.

“What comes through in the site visits that is not reflected in written applications is the enthusiasm of the people who work in community development financial institutions (CDFIs). This commitment to their communities, and their deep knowledge of their markets, is something that mark CDFIs as unique institutions.”

Louisa Quittman, CDFI Fund Financial and Programs Analyst “The site visits took me to the South West where I witnessed communities and individuals pursuing their dreams in very dif- ferent and transforming ways. In Albuquer- que, NM, there were small business owners and a women’s sewing collaborative. At the Hopi Credit Association in Keams Canyon, AZ, culture and custom is integrated into housing, business, and education lending on the reservation. And in Phoenix, AZ, I met a proud first-time homeowner who didn’t believe he would own his own home and now can raise his daughters in the neighborhood in which he grew up. This experience helped to reinforce for me the real value of what the CDFI Fund is about.”

Sarah Crowley, Despite a severed achilles tendon, Maurice Jones joined the staff and board of directors CDFI Fund of the Jackson/Hinds Minority Capital Financial and Programs Analyst Fund “MinCap” in Jackson, Mississippi to present a ceremonial check for $400,000 from the CDFI Fund.

4 “It’s exciting to see the New Road Commu- nity take its destiny into its own hands by identifying what they need and rolling up their sleeves to work toward their goal.”

Rosa Martinez, CDFI Fund Financial and Programs Analyst

“Eddie Alvarez came from the Do- The New Road Community Development minican Republic to Brooklyn five years ago Group has renovated several homes like this one for the residents of its community. New with just a single statue mold and his ambi- Road receives technical assistance from the tion. ACCION New York, a 1998 CDFI Fund Virginia Eastern Shore Economic awardee, made several loans to Eddie, en- Empowerment and Housing Corp., funded by abling him to significantly expand his suc- Rural LISC, a CDFI Fund awardee. cessful statue-making business. Eddie’s enormous factory with its thousands of plas- ter molds is a credit to him and ACCION.” “MinCap” provided the loans for Bush 4 Pizza in Jackson, MS. Margaret Woolley, Pictured are Theophilus Bush, CDFI Fund President, and Vonda Bush, Vice President. Financial and Programs Analyst

Eddie Alvarez standing in his factory beside some of his statues.

“The Northeast Community Federal Credit Union provides services to a market that otherwise wouldn’t be served. A site visit to The Tin Shing Printing Co. is a family operated business Chinatown and the Tenderloin gives that relies on the Northeast you a perspective on San Fran- Federal Credit Union for cisco that most people never get.” Financing.

Sean Zielenbach, CDFI Fund Financial and Programs Analyst

5 • 79 banks and thrifts Hopi Credit Association Rubin awarded Keams Canyon, AZ $500,000 (continued from cover page) Illinois Facilities Fund Chicago, IL $2,500,000 Spring, MD; Ollyn Lettman, These awards reflect: Lake Agassiz Regional Executive Director, Com- • $104.2 million in equity Development Corp. munity First Fund, investments, grants, loans, Fargo, ND $635,000 Lancaster, PA; and Peter Local Initiatives Support Corp. deposits, or technical as- New York, NY $1,000,000 Nostrand, Greater Wash- sistance to 89 certified Low Income Housing Fund ington Region President, CDFIs across the nation San Francisco, CA $2,000,000 Crestar Bank, Washington, McAuley Institute • $596 million in loans, Silver Spring, MD $1,246,000 DC. investments and financial Mountain Economic The CDFI Program le- services in America. Development Fund, Inc. verages federal dollars by Winchester, KY $250,000 Neighborhood Housing Services requiring that each CDFI 1998 CDFI Program of Phoenix, Inc. Core Component Awards provide at least a one-to- Phoenix, AZ $1,150,000 one match with funds from Neighborhood Housing Services, non-federal sources for ACCION New York, Inc. Inc. Boise, ID $720,000 each dollar of assistance it Brooklyn, N.Y. $500,000 ACCION Texas, Inc. Neighborhood Trust Federal receives. In addition, CDFI San Antonio, TX $1,200,000 Credit Union Program award recipients Anchorage Neighborhood New York, NY $210,000 New Hampshire Community are held to performance Housing Services, Inc. Anchorage, AK $1,100,000 Loan Fund goals that help ensure that Appalachian Development Concord, NY $2,500,000 the CDFI Fund’s invest- Federal Credit Union New Mexico Community ment will result in significant The Plains, OH $610,000 Development Loan Fund Austin Community Development Albuquerque, NM $325,000 community impact. Corporation Northeast Community Federal Visit our website at Austin, TX $500,000 Credit Union www.treas.gov/cdfi to see Bethex Federal Credit Union San Francisco, CA $720,000 Bronx, NY $460,000 Northland Foundation descriptions of all 190 Cape and Islands Community Duluth, MN $500,000 awards. Development, Inc. Riverside County Community Hyannis, MA $52,500 Investment Corp. Riverside, CA $250,000 CDFI Fund Capital District Community Loan Rural Community Assistance 1998 Awards Highlights Fund Albany, NY $290,000 Corp. Cascadia Revolving Fund Sacramento, CA $2,000,000 Core Component Seattle, WA 1,170,000 Rural Development and Finance Community Development Corp. Ventures, Inc. San Antonio, TX $500,000 • $44.3 million awarded Baltimore, MD $1,250,000 Self-Help Ventures Fund • 42 community develop- Community Loan Fund of Durham, NC $2,000,000 Southwestern Pennsylvania, Inc. Southern Dallas Development ment organizations se- Pittsburgh, PA $1,250,000 Corp. lected Community Preservation Dallas, TX $850,000 Corporation Southern Development Bancorporation Technical Assistance New York, NY $2,000,000 Cooperative Fund of New Arkadelphia, AR $2,500,000 Component England Southern Kentucky Economic Hartford, CT $250,000 Development Corp. Somerset, KY $500,000 • $3 million awarded Delaware Valley Community Reinvestment Fund William Mann, Jr. Community • 70 community develop- Philadelphia, PA $2,500,000 Development Corp. ment organizations se- Enterprise Community Fund Fort Worth, TX $520,000 lected Akron, OH 230,000 Women’s Self-Employment Enterprise Corporation of the Project Delta Chicago, IL $625,000 Bank Enterprise Award Jackson, MS $2,500,000 Working Capital Program The Enterprise Foundation, Inc. Cambridge, MA $800,000 Columbia, MD $2,500,000 First Bank of the Americas SSB • $28 million awarded Chicago, IL $1,100,000

6 (continued from page 6) Inglewood Neighborhood Progressive Neighborhood 1998 CDFI Program Housing Services, Inc. Federal Credit Union Technical Assistance Inglewood, CA $43,000 Rochester, NY $50,000 Component Awards Kekaha Federal Credit Union Quitman County Federal Credit Kekaha, HI $48,000 Union Baltimore Regional Community Laredo-Webb Neighborhood Marks, MS $32,500 Development Corp. Housing Services, Inc. Renaissance Economic Baltimore, MD $33,500 Laredo, TX $57,200 Development Corp. Borinquen Federal Credit Union Legacy Bancorp, Inc. New York, NY $48,000 Philadelphia, PA $52,500 Glendale, WI $21,500 RNA Community Builders, Inc. Business Invest in Growth Lending Enterprise for West Rutland, VT $41,000 Austin, TX $44,550 Neighborhood Development, Inc. Roberto Clemente Federal Credit Charlotte-Mecklenburg Housing South Bend, IN $44,000 Union Partnership, Inc. Lighstone Community Bronx, NY $35,000 Charlotte, NC $25,000 Development Corp. Rocky Mountain Mutual Chicago Community Loan Fund Moyers, WV $25,000 Financial Services, Inc. Chicago, IL $38,000 Local Economic Assistance Denver, CO $35,500 College Station Community Program, Inc. Sable Bancshares, inc. Federal Credit Union Oakland, CA $50,000 Chicago, IL $29,000 College Station, AR $50,000 Local Enterprise Assistance Fund Sacramento Neighborhood Colorado Enterprise Fund Boston, MA $46,500 Housing Services, Inc. Denver, CO $50,000 Lower East Side People’s Federal Sacramento, CA $50,500 Colorado Rural Housing Credit Union Salt Lake Neighborhood Housing Development Corp. New York, NY $48,800 Services, Inc. Westiminister, CO $23,000 Mon Valley Initiative Salt Lake City, UT $42,500 Community Collaboration for Homestead, PA $26,000 South Dakota Rural Enterprise, Economic Development Mountain Association for Inc. Champaign, IL $25,000 Community Economic Spearfish, SD $50,000 Community Development Venture Development, Inc. St. Charles Borromeo Federal Capital Alliance Berea, KY $25,000 Credit Union New York, NY $115,000 Neighborhood Housing and New York, NY $50,000 Community First Fund Development Corp. Stillman Community Development Lancaster, PA $25,000 Gainesville, FL $42,500 Federal Credit Union Community Works in West Neighborhood Housing Services Tuscaloosa, AL $25,000 Virginia, Inc. of Chicago, Inc. Sustainable Jobs Corp. Big Chimney, WV $50,000 Chicago, IL $67,700 Durham, NC $50,000 Comunidades Federal Credit Neighborhood Housing Services Union Fidelity Fund, Inc. Union of Toledo, Inc. Belle Glade, FL $35,000 Los Angeles, CA $ 50,932 Toledo, OH $50,000 Union Settlement Federal Credit Cornerstone Homesource Neighborhood Housing Services Union Regional Loan Fund of Trenton, Inc. New York, NY $53,818 Cincinnati, OH $35,000 Trenton, NJ $50,000 Utica Neighborhood Housing Delta Foundation, Inc. New Community Development Service, Inc. Greenville, MS $50,000 Loan Corp. Utica, NY $40,000 Demopolis Federal Credit Union Newark, NJ $7,000 Virginia Community Development Demopolis, AL $25,000 New Horizons Community Fund, Inc. Development Credit Fund, Inc. Federal Credit Union Richmond, VA $49,960 Baltimore, MD $51,246 Philadelphia, PA $51,000 Virginia Community Development Enterprise Community Federal Northeast Louisiana Delta Loan Fund Credit Union Richmond, VA $35,000 Las Vegas, NV $50,000 Community Development Corp. Tallulah, LA $50,000 Washington Area Community Enterprise Development Corp. Northern California Community Investment Fund The Plains, OH $37,350 Washington, DC $50,000 First Combined Community Loan Fund San Francisco, CA $41,000 Washington County Council on Federal Credit Union NorthSide Community Federal Economic Development Landover, MD $45,500 Washington, PA $42,500 Genesee Co-Op Federal Credit Credit Union Chicago, IL $39,500 Washington Heights and Inwood Union Development Corp. Rochester, NY $50,000 Omaha 100, Inc. Omaha, NE $25,000 New York, NY $40,000 Growth Finance Corporation of O.U.R. Federal Credit Union Oxford Hills Eugene, OR $48,000 1998 Bank Enterprise South Paris, ME $49,865 Ponce Neighborhood Housing Award Program Awards Hawaii Community Loan Fund Services, Inc. Honolulu, HI $50,000 Ponce, PR $50,000 Home Headquarters, Inc. PPEP Microbusiness and Androscoggin Savings Bank Syracuse, NY $32,000 Lewiston, ME $2,250 The Immigrant Center Housing Development Corp., Inc. Tucson, AZ $39,450 Honolulu, HI $44,800 (continued on page 8)

7 (continued from page 7) The Fuji Bank and Trust Co. SunTrust Bank, Tampa Bay Bank of America Community New York, NY $894,375 Tampa, FL $27,500 Development Bank Gateway National Bank Susquehanna Bank Walnut Creek, CA $1,513,647 St. Louis, MO $52,756 Baltimore, MD $242,649 Bank of America, NT & SA Golden Gate Bank Texas State Bank Chicago, IL $474,777 San Francisco, CA $11,000 McAllen, TX $165,000 Bank of America, FSB Harris Trust and Savings Bank Texline State Bank d/b/a Portland, OR $610,592 Chicago, IL $5,025 Banco Tejano Bank of Hawaii Hibernia National Bank Houston, TX $41,567 Honolulu, HI $346,366 New Orleans, LA $406,428 Triangle Bank Bank of Yazoo City International Bank of Commerce Raleigh, NC $110,000 Yazoo City, MS $3,750 Brownsville, TX $55,000 Bank One, Arizona, NA Union Federal Saving Bank of KeyBank, NA Indianapolis Phoenix, AZ $171,644 Portland, ME $491,750 Indianapolis, IN $513,871 Bank One Texas, NA Labe Federal Bank University Bank Dallas, TX $2,599,075 Chicago, IL $21,000 BankBoston, NA Ann Arbor, MI $22,130 LaSalle Bank, NA Vine Street Trust Company Boston, MA $11,250 Chicago, IL $122,250 Lexington, KY $8,250 Caldwell Bank and Trust Manufacturers and Traders Trust Wachovia Bank, NA Company Co. Durham, NC $550,000 Columbia, LA $100,570 New York, NY $2,911,370 Cambridge Savings Bank Wainwright Bank and Trust Co. Manufacturers Bank Boston, MA $128,603 Cambridge, MA $3,668 Los Angeles, CA $29,588 Washington Mutual Bank Central Bank of Kansas City MBNA America Bank, NA Seattle, WA $750,000 Kansas City, MO $$585,555 Wilmington, DE $451,000 Wells Fargo Bank, NA Chase Bank of Texas Mercantile Bank, NA Los Angeles, CA $75,000 Brownsville, TX $330,000 Brownsville, TX $165,000 Western Financial Bank The Chase Manhattan Bank Merchants and Farmers Bank Irvine, CA $24,002 New York, NY $2,215,548 Dumas, AR $3,750 Chinatrust Bank USA Mid-Peninsula Bank Arcadia, CA $17,816 Palo Alto, CA $131,893 IDAs Citibank, FSB National Bank of Greece, Chicago San Francisco, CA $650,698 Branch (continued from page 2) Citibank, NA Chicago, IL $22,000 New York, NY $192,500 Nationsbank, NA ings mechanism for low-in- Cole Taylor Bank Sarasota, FL $1,252,500 come individuals and fami- Skokie, IL $120,628 Northeast Bank Community Bank of the Bay Auburn, ME $1,575 lies. The program, known as Oakland, CA $776,066 The Northern Trust Co. the Assets for Independence Community Capital Bank Chicago, IL $316,825 Act, provides for an asset Brooklyn, NY $143,415 Norway Savings Bank building strategy intended to Compass Bank Norway, ME $23,250 Houston, TX $409,177 Norwest Bank Minnesota, NA encourage persons and Concordia Bank and Trust Co. Minneapolis, MN $7,500 families with incomes at or Ferriday, LA $3,750 Oceanmark Bank, FSB below 150 percent of the Crestar Bank North Miami Beach, FL $26,497 Washington, DC $738,856 Park Federal Savings Bank federal poverty guidelines to Deposit Guaranty National Bank Chicago, IL $115,500 save by matching individual Jackson, MS $150,000 PFF Bank and Trust savings with public and pri- Evergreen Bank, NA Pomona, CA $7,764 vate monies. These ac- Glens Falls, NY $137,763 Planters Bank and Trust Co. Farmers Bank and Trust Co. Indianola, MS $3,750 counts are targeted to high Blytheville, AR $3,750 Republic Bank and Trust Co. return investments: second- Farmers National Bank Louisville, KY $118,140 ary education, business Cynthiana, KY $85,250 Republic Bank California, NA start-up and purchase of a First Bank of Oak Park Beverly Hills, CA $84,408 Oak Park, IL $41,840 Republic National Bank first home. First National Bank of Chicago New York, NY $167,875 The Office of Community Chicago, IL $450,000 Roosevelt Savings Bank Services at the Department First of America Bank, NA Garden City, NY $105, 911 Kalamazoo, MI $81,670 ShoreBank, Cleveland of Health and Human Ser- First Union National Bank Cleveland, OH $103,619 vices will administer this four Charlotte, NC $2,154,900 The South Shore Bank of year demonstration pro- Firstar Bank Milwaukee, NA Chicago gram. Congress provided Milwaukee, WI $671,968 Chicago, IL $1,060,390 Fleet Bank, NA SunTrust Bank, Atlanta $10 million in FY 1999 to be- New York, NY $88,000 Atlanta, GA $245,660 gin this initiative. To date, more Fremont Investment and Loan than 26 states have created Morgan Hill, CA $15,948 (continued on page 9)

8 (A regular feature of the CDFI Quarterly will be to highlight federal resources and programs that may enhance or complement the work of CDFIs) AmeriCorps*VISTA by Jennifer Smith AmeriCorps*VISTA Members Create Opportunities in Low-Income Communities Since 1965, well over 120,000 individu- In ten states, the National Federation of als have served in VISTA (Volunteers in Community Development Credit Unions, a Service to America) helping low-income 1997 awardee under the CDFI Fund’s Inter- communities help themselves. Under the mediary Program, is sponsoring AmeriCorps umbrella since 1994, AmeriCorps*VISTA members who are sup- AmeriCorps*VISTA plays a critical role in porting Individual Development Account (IDA) assisting low-income individuals enter or programs. For every dollar deposited by the reenter the workforce through the creation account holder, agencies or businesses in the and expansion of job training, job placement, community can match those deposits with and microenterprise development assis- cash which can be used for education, job tance for individuals transitioning from wel- training, purchasing a first home, or capitaliz- fare to work. AmeriCorps*VISTA members ing a small business. Among the program serve full-time for one year with a public or participants is 1998 awardee Appalachian private nonprofit organization creating sus- Development Federal Credit Union, in The tainable programs that affect change in low- Plains, Ohio, where long time community resi- income communities. According to the 1997 dent Brenda Kim serves as a VISTA. Addi- Westat, Inc. Accomplishments Study, in one tionally, all community participants receive year 700 AmeriCorps*VISTA members economic literacy training on how to improve served on nearly 200 economic and com- their credit, set up budget and savings sched- munity development projects. Through ule, and understand the basics of money man- AmeriCorps*VISTA activities, 1,400 busi- agement. nesses agreed to hire 2,600 unemployed For more information about candidates, 770 microenterprise businesses AmeriCorps*VISTA please contact 1-800- were established or expanded, and nearly 942-2677. If you are interested in becoming 500 individuals and businesses obtained de- an AmeriCorps*VISTA project sponsor, velopment capital. VISTA members placed please contact the Corporation for National 3,700 individuals in jobs at an average hourly Service office in your state or visit our website wage of $6.77. at www.americorps.org Throughout the state of Massachusetts, AmeriCorps*VISTA members assigned to IDAs (continued from page 8) Working Capital, Inc. organize peer lending policies to encourage the development of IDAs. groups which provide the resources, tech- Separately hundreds of low-income people nical assistance, and support needed to participate in these savings accounts and mil- start up businesses and ensure their sur- lions of dollars from public and private sources vival. VISTA members create and implement are used to match the investment funds. marketing strategies to recruit entrepreneurs There are a number of banks and thrift in- from the low-income community into the pro- stitutions that currently support IDAs by program and link the entrepreneurs with uni- viding banking services to IDA participants, pro- versities, business training programs, and viding matching dollars to IDA contributions, other resources to provide maximum sup- providing account data to community organi- port for the entrepreneurs. A recent CDFI zations running IDA programs and assisting in Awardee, Working Capital is a nonprofit eco- the design and implementation of IDA pro- nomic development program that provides grams. By investing in and managing these loans of $500 to $5,000, approved and sup- accounts IDAs create an opportunity for banks ported by peers, to small businesses con- and other financial institutions to gain Com- sisting of five or fewer employees. munity Reinvestment Act credit

9 CDFI Program. Although Haa Yakaawu Financial Corp. Certification Juneau, AK (continued from cover page) organizations applying for Hawaii Community Reinvestment development, principally CDFI Program funding do Corp. not have to be certified at Honolulu, HI serve and maintain ac- Hawaii Community Loan Fund countability to eligible target the time of application, to Honolulu, HI markets, be a financing en- receive an award they The Immigrant Center must demonstrate to the Honolulu, HI tity, provide development Impact Seven, Inc. services and neither be a Fund that they have a plan Almena, WI government entity nor con- to meet the eligibility re- Laredo-Webb Neighborhood quirements (e.g., become Housing Services, Inc. trolled by a government en- Laredo, TX tity. These requirements are certified) within a certain Los Angeles Community found in the CDFI Program period of time. Second, Reinvestment Committee regulations at 12 CFR § since the Bank Enterprise (DBA Com. Fin. Res. Center) Award (BEA) Program re- Los Angeles, CA 1805.200 and §§ 1805.701 Louisiana Community (b)(1)-(8). Certification wards insured depository Development Capital Fund does not constitute an opin- institutions for increasing BIDCO, Inc. their assistance to certified Baton Rouge, LA ion by the Fund as to the ef- Minority Investment Development fectiveness or financial vi- CDFIs, many certified Corp. ability of the certified orga- CDFIs are able to increase Providence, RI Neighborhood Housing Services, nization. their fundraising by partnering with insured de- Inc. Boise, ID Q: How many organiza- pository institutions apply- Neighborhood Housing Services tions have been certified by ing under the BEA Program of Reading Inc. (see article on page 9). Fi- Reading, PA the Fund as CDFIs and North Philadelphia Financial how can I get a current list nally, many CDFIs state Partnership of certified CDFIs? that they have found that Philadelphia, PA Northern Community Investment A: As of September 16, CDFI certification in- creases their ability to raise Corp. 1998, the Fund has certified St. Johnsbury, VT 262 organizations as funds from sources such Primary Care Development Corp. New York, NY CDFIs. These certified as foundations and state and local governments. The Progress Fund CDFIs are located in 44 Hollidaysburg, PA Progressive Neighborhood states, the District of Co- Newly Certified CDFIs Federal Credit Union lumbia and Puerto Rico. A Rochester, NY complete list of certified Rural Opportunities Enterprise Bank of Cherokee County, Inc. CDFIs can be found on the Park Hill, Ok Center, Inc. Rochester, NY CDFI Fund web site: Birmingham Community Salisbury Neighborhood Housing “www.treas.gov/cdfi”. Development Corp. Services Birmingham, AL Salisbury, MD Those CDFIs certified Central Bank of Kansas City since the last issue of CDFI Kansas City, MO South End Federal Credit Union Boston, MA Community Development Fund Quarterly are listed on Tlingit-Haida Regional Housing this page. Financing Corp. Baltimore, MD Authority Juneau, AK Community Preservation Corp. Worker Ownership Resource Q: What are the benefits New York, NY Dorchester Bay Neighborhood Center of certification as a CDFI? Geneva, NY Loan Fund A: There are several im- Dorchester, MA portant potential benefits of First Bank of the Americas If you do not see an or- CDFI certification. First, S.S.B. (FBA Bancorp, Inc.) ganization listed or would Chicago, IL like information on the sta- certification makes an orga- Greenwood Community nization eligible to apply for Development Corp. tus of a certification review, funding under the Fund’s Tulsa, OK please call the Fund at (202) 622-8662

10 BEA as a Fundraising Tool by Jeannine Jacokes

Promoting private investment in CDFIs is one of the primary goals of the Bank Enterprise Award Program (“BEA”). BEA provides incentives for FDIC-insured bank and thrifts to invest in CDFIs through equity investments, grants, loans, deposits and technical assistance. Since 1996, BEA awardees have provided a total of $273 million in financial or technical assistance to CDFIs. In 1998 alone, banks and thrifts participating in the program provided $140 million in financial support to 90 CDFIs. BEA has proven to be a successful fund raising tool for CDFIs because it creates a “win-win” scenario for both the CDFI and its bank partners. Bankers report that investing in CDFIs can help them reach new markets that they otherwise could not reach. BEA also provides tools to help bankers meet their community reinvestment goals, enhance the return on their CDFI investment activities, and gain valuable public recog- nition for their community development activities. CDFIs benefit from the program by utilizing it as a tool for attracting the assistance of banks and thrift investors. Furthermore, monies raised from BEA awardees may be used by CDFIs to meet their matching funds requirements under the CDFI Program, and technical assistance provided by banks has assisted in building the capacity of CDFIs. “BEA has been a valuable program to us for informing financial institutions about our work as a CDFI, as well as bringing in capital in the form of equity, loan and equity equivalents,” stated Doug Bystry, President of the Clearinghouse CDFI. Mr. Bystry states further that “the program provides a real benefit to the lenders that are considering an investment in our CDFI.” The Clearinghouse CDFI is a start up CDFI which finances affordable housing in Southern California. This CDFI has raised in excess of $2.5 million in debt capital and $900,000 in equity from more than 25 banks and thrifts through the BEA Program. Once a bank receives its BEA award, the Fund places no restrictions on the use of the proceeds. However, many awardees have reported that they used their awards to support new community development activities. In 1997, the Fund surveyed the 1996 BEA awardees and asked how they used their awards. Approximately two-thirds of the respondents reported that they used their awards to support new community development activities. In 1998, the banks that provided the greatest level of support to CDFIs were Chase Manhattan Bank ($31.8 million), First Union National Bank ($28.2 million), The Northern Trust Company ($6.6 million) and Nationsbank ($6.1 million). The CDFIs that raised the greatest amount of financial support from BEA awardees were Local Initiatives Support Corporation ($28.35 million), The Enterprise Foundation ($16.35 million), Self Help Ventures Fund ($9 million), Neighborhood Housing Services of Chicago ($6.5 million), and Greater Brownsville Community Development Corporation ($6.5 million). “The BEA Program has been a way that lending institutions can begin to be more creative with the types of loans and investment they are making in CDFIs.” “I cannot emphasize enough how the program has helped Enterprise market what it does to banks and how it creates financial incentives for banks to invest in communities,” stated Susan Newton, director of Finance for the Enterprise Foundation. There are many opportunities for banks to invest in CDFIs. The Fund has certified over 260 CDFIs nationwide. The Fund publishes a list of certified CDFIs which is updated on a regular basis. On September 1, 1998 the Fund published a Notice of Funds Availability in the Federal Register for the 1999 round of BEA. For the 1999 round, the Fund has $25 million available for BEA awards. Applications are due on November 24. Applications may be obtained by calling the Fund at (202) 622-8662 CDFI Fund Advisory Board

John A. Litzenberg, Chairman Richard S. Carnell Elizabeth L. Homer Chester Straub Program Officer Assistant Secretary for Financial Director Deputy Assistant Secretary Charles Stewart Mott Foundation Institutions Office of American Indian Trust Office of Program Operations Department of the Treasury Department of Interior Department of Commerce Frank T. Ballesteros Deputy Chief Executive Officer Connie E. Evans Clara G. Miller George P. Surgeon PPEP Microbusiness and Housing President Chair of the Board Chief Financial Officer Development Corporation, Inc. Women’s Self-Employment National Community Capital Shorebank Corporation Project Association Arthur C. Campbell John E. Taylor Deputy Under Secretary for Rural John Gray Carol J. Parry President and CEO Economic & Community Associate Deputy Administrator, Senior Vice President, Community National Community Reinvestment Development Office of Capital Access Development Group Coalition Department of Agriculture Small Business Administration The Chase Manhattan Bank

11 The Community Development Financial Institutions Fund is a wholly-owned government corporation within the U.S. Department of Treasury. Its vision: An America in which all people have access to capital and financial services. Its mission: Promote access to capital and local economic growth by directly investing in and supporting community development financial institutions (CDFIs) and expanding financial service organizations’ lending, investment, and services within underserved markets.

CDFI Fund Management Team Ellen Lazar, Director Maurice Jones, Deputy Director for Policy & Programs Paul Gentille, Deputy Director for Management/CFO Jeffrey Berg, Legal Counsel Helen Szablya, External Affairs Officer

“CDFI Fund Quarterly” is designed and co-edited by the External Affairs Office and published every three months by the CDFI Fund.

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