California Community Economic Development Association

Transcription

1 California Community Economic Development Association 1

2 WHAT IS A CDFI? Nonprofit financial institution providing finance to underserved urban and rural communities Promote economic revitalization, create jobs, finance affordable housing Provide community development loans, investments, tax credits, financial training Can receive funding from the U.S. Treasury Department, banks, individuals, corporations and religious institutions Must be accountable to low-income communities

3 MISSION INVESTING IN OPPORTUNITY, TOGETHER NCCLF promotes economic justice and alleviates poverty by increasing the financial resilience and sustainability of nonprofits and enterprises. Through flexible financial products and sound advice, we create opportunities to make socially responsible investments that revitalize Northern California communities.

4 VISION NCCLF envisions financially strong & culturally vibrant communities where each person has access to decent jobs, homes, health care, education, and economic opportunities. We work in partnership with individuals and organizations who share our vision of sustainable communities and social and economic justice. FOUNDED IN 1987 TO: Provide debt capital to disinvested communities Share knowledge and best practices around finance and real estate to nonprofits Mobilize local resources for local needs 4

5 PROGRAMS LENDING & NMTCs CONSULTING SERVICES STRATEGIC INITIATIVES IMPACT INVESTING PUBLIC POLICY 5

6 CUMULATIVE IMPACT Affordable Housing Units Created or Preserved 7,200 Loan Total $325,798, NMTC Projects $132,500,000 Jobs Created or Retained 22,900 Clients Served 1,600,000

7 AFFORDABLE HOUSING Bay Area Transit-Oriented Affordable Housing Fund Families Special Needs Seniors Veterans Supportive Self-Help Affordable Housing Sustainable Communities (AHSC) Fund 110-unit senior apartments, San Francisco 80-unit supportive housing, Stockton 7

8 COMMUNITY FACILITIES Expanded EOYDC s headquarters $8,500,000 of NMTCs $2,900,000 Loan

9 COMMUNITY FACILITIES $925,000 Acquisition and Renovation Loan New arts education center Extensive financial management and real estate consulting

10 REVOLVING LINES OF CREDIT $1.5M line of credit to bridge state and federal payments

11 REVOLVING LINES OF CREDIT $100,000 line of credit to bridge fundraising gaps 11

12 HEALTHY, LOCAL FOOD Vallarta Supermarket, Fresno Food Banks Retail Stores Grocery Stores Food Hubs Food Co-ops Farmers Ag Link, Merced County Yolo Food Bank, Woodland

13 CONSIDERATIONS FOR FINANCING SOCIAL ENTERPRISE What s your motivation? Is this a real opportunity? Keep things separate: accounting, operating funds, liabilities Get the right staffing and governance Consider a vehicle that allows for private investment

14 BLENDED FINANCING FOR BLENDED RETURNS Crowdfunding Direct Public Offering Angel investors Foundation Grants Program Related Investments Government Grants

15 Contact Information Nate Schaffran Manager, Food and Enterprise Lending ext. 328

16 WHAT TO EXPECT WHEN APPLYING FOR A LOAN You ll be asked for: 3 years of financial statements Year-to-date financials Collateral worth at least 125% of the loan A financial projection going as far out as the loan Some equity or net assets. Usually at least 20% of total funding. Proof of your concept or market, i.e. government contracts, sales Personal credit check, guarantees (if a private business)

17 FINANCING CONSIDERATIONS Debt Loans that are repaid (with interest!) Fixed payments Requires collateral, track record Lender has no control over business Lender not involved in business operations Equity An investment in the ownership of the business Dividends paid out of profits May work for startups Investor may have one or more board seats Investor may provide operating expertise

18 HEALTHY, LOCAL FOOD BUILDING CAPACITY, INCREASING LOANS AND MITIGATING LENDER RISK $8.0M CREDIT ENHANCEMENT: Lenders can take greater risks $1.52M TA GRANT CAPITAL: Increases likelihood of success $800K MICRO EQUITY: Risk capital for promising start-ups MARKET MAKERS: Facilitate deal flow MICROLENDING: Partnership with regional microlenders

19 ACCESS TO HEALTHY FOOD: Increase equitable access to healthy food, and build equitable food systems, as a means to improve the health of all Californians ECONOMIC DEVELOPMENT: Expand businesses, create sustainable jobs, and grow the California economy to support vulnerable communities INNOVATION: Encourage innovation and entrepreneurship in healthy food, to demonstrate how 21 st Century food system might function Lead Investor Co-Investors Public Resources (HFFI, USDA, NMTC) HEALTHY, LOCAL FOOD Program Executive Deal Flow Deal Flow Credit Enhancement MARKET MAKERS LENDING PARTNERS Technical Assistance & Equity Grants LOANS FOOD ENTERPRISES

20 COMMUNITY CATALYST FUND Early-stage funding grants & 0% interest forgivable loans Mission-driven organizations Predevelopment or start-up phases Commercial Kitchen for Food Entrepreneurs, Clovis Grocery Store/Food Hub Site Goshen, Tulare County FCF DPO for grocery store/food hub, Southwest Fresno

21 COMMUNITY FACILITIES Financed purchase of a recording studio for program expansion in SOMA Repayment from capital campaign proceeds Extensive financial management and real estate consulting prior to purchase