NATIONAL COMMUNITY INVESTMENT FUND
Grant: $2,000,000 - Community Development Financial Institutions - Jul. 28, 2009
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Award Description: The National Community Investment Fund (NCIF) requested a $2.0 million FA award for the purpose of making strategic, high-impact investments in community development banking institutions (CDBIs) in both rural and urban markets. NCIF views the FA award as an important element in a set of coordinated efforts to strengthen and accelerate our investment activities, while continuing to operate in a sustainable fashion. NCIF will substantially increase our level of investment activity with the FA award, and will target these new investments to CDBIs serving markets that our current investments presently do not reach. We will also consider follow-on investments in high performing CDBIs who are expanding their service in markets where NCIF already has an investment. NCIF anticipates making $12.5 million of high-impact investments to CDBIs during the three-year forecast period. As of October 15, 2008, NCIF has made a total of $24.9 million in CDBI investments. With the projected new investments, cumulative volume will increase 50% over the projection period. The FA award will be used to partly fund this effort. These investments will generate important impacts in the low income communities that are served by CDBIs, including increased provision of much needed financial products and services such as small business loans, alternatives to pay-day loans and financial literacy training. Simultaneous with significantly increasing its new investing during the projection period, NCIF will deploy a portion of the award in a variety of projects and recurring activities that support our capacity to add value to the CDBI field, to identify and underwrite new CDBIs. These activities include further developing the NCIF Social Performance Metrics, improving NCIF?s website to more effectively disseminate information to stakeholders, and purchasing an industry database that provides timely data about the banking sector. NCIF projects the following community impacts, as follows: Development loans made by NCIF investees (number and dollar value of the loans). NCIF defines development loans as a loan that is made within a CDFI Investment Area census tract. To qualify as a CDFI Investment Area, the tract must have either (a) a poverty rate greater than 20% (b) an unemployment rate greater than 1.5 times the national average or (c) a median family income that is less than 80% of the median family income for a relevant geographic area (for tracts within an MSA, it is compared to the MSA itself; for tracts outside of an MSA, it is compared to the state).This impact is projected to steadily increase over the three-year forecast, to a total of nearly 10,500 developments loans with a dollar value of $718 million (2009) to more than 11,500 development loans with a dollar value of $792 million (2011). Jobs Created and/or Retained This metric represents jobs created and/or retained by NCIF investees. This figure was calculated by using data from a HUD report that examined the impact of economic development lending activity on private sector job creation. The analysis concluded that the creation of low and moderate jobs resulted in an average loan principal cost per low and moderate jobs of $35,030, 1/2 of NCIF?s estimate. NCIF is using the more conservative ($70,353) in the projections because, unlike the HUD data, the types of businesses that CDBIs finance are very diverse (e.g., manufacturing, industrial, retail, etc) and located in diverse markets, making for divergent results. NCIF expects to have accomplished a cumulative 20,191 jobs created and/or retained by 2011. Mission Deposits Beginning in 2008, NCIF began raising ?mission? deposits for CDBIs from insurance companies, banks and other investors. NCIF expects to direct $100.0 million in deposits for CDBIs using the NCIF Social Performance Metrics by 2011.
Project Description: The National Community Investment Fund (NCIF) requested a $2.0 million FA award for the purpose of making strategic, high-impact investments in community development banking institutions (CDBIs) in both rural and urban markets. These investments will help strengthen the asset class of the community development banking industry. NCIF is currently pursuing multiple high-impact investment opportunities and plan to close on at least one in the coming weeks. Please refer to the Award Description for information relating to the cumulative impacts and results that NCIF expects to be facilitated by the award.
Jobs Summary: NCIF has not yet deployed ARRA funds, thus no jobs have been created as a result of the funds as of 9/30/2009. (Total jobs reported: 0)
Project Status: Less Than 50% Completed
This award's data was last updated on Jul. 28, 2009. Help expand these official descriptions using the wiki below.
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