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COMMUNITIES AT WORK FUND ANNOUNCES $60 MILLION OF LOANS TO FUEL SMALL BUSINESS LENDING IN LOW-INCOME U.S. COMMUNITIES

RCAC Received $5 million

November 3, 2010

Sacramento, Calif., Nov. 3, 2010 – Communities at Work Fund™ announced on November 3rd that it has approved financing for $60 million from the Fund’s total of $200 million which was established  to help fuel small business lending in low-wealth and low-income U.S. communities. RCAC was awarded $5 million. 

Citi provided $199 million of capital through a combination of equity and loans with Calvert Foundation and Opportunity Finance Network (OFN) contributing the balance to launch the Fund in May 2010.

Vikram Pandit, CEO of Citi, said: “Citi is committed to helping small businesses grow and succeed. Working with Calvert Foundation and Opportunity Finance Network, we are helping give small businesses the boost they need during challenging times.  These businesses strengthen communities and spur the job creation that is essential to drive our nation’s economic recovery.”

“The Communities at Work Funds will provide new resources for RCAC to lend to small rural communities and tribes to develop infrastructure and community facilities, and to promote economic development and jobs in these rural areas,” said Stanley Keasling, RCAC chief executive officer

The Communities at Work Fund™ provides financing to Community Development Financial Institution (CDFI) Loan Funds that lend to non-profit and for-profit businesses in low-income communities. Today’s announcement of $60 million in lending will support CDFIs working in 39 states and Washington, D.C. that finance small businesses, advance sustainable economic development, stabilize and drive job creation and contribute to the economic recovery of community groups – including urban and rural business owners and minorities – that are underserved by traditional financial institutions. 

“We are excited to have been selected in this first group of CDFI’s to receive funding, and we applaud the efforts of Citi, Calvert Foundation and Opportunity Finance Network in making this important resource available,” Keasling said.

CDFI Loan Funds have a 30-year history of serving as effective channels for creating economic opportunities in underserved communities while providing positive financial results. According to 2008 OFN Member Data, CDFI Loan Funds provided $1.6 billion in financing in 2008 and have loaned $16 billion cumulatively supporting more than 50,500 small businesses. In addition, the OFN CDFI Market Conditions Report, fourth quarter 2009, notes that CDFI Loan Funds’ net charge-offs were lower than those of FDIC-insured institutions in 2008 and in 2009.

For more information about the Communities at Work Fund, please visit www.communitiesatworkfund.com

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RCAC created its Loan Fund in 1988 and was later certified as a CDFI. As of September 30, 2010, RCAC closed 584 loans which totaled $300,654,570 and leveraged more than $1.2 billion for projects in rural communities. These loans supported 46,675 individual water and wastewater connections for rural citizens, 11,378 housing units and 1,149,471 feet of community facility space. These loans created or retained 13,296 jobs. RCAC currently has 141 loans under management, totaling more than $47 million. Additionally, RCAC manages 45 loans totaling $50,898,112 on behalf of other lenders and investors. The RCAC Loan Fund is capitalized at more than $68 million with investments from foundations, religious organizations, banking institutions and government entities.

In FY 10, RCAC loans supported 9,100 individual water and wastewater connections for rural citizens, 367 housing units and 258,477 feet of community facility space. Additionally, RCAC loans in FY 10 created or retained 332 jobs.

Founded in 1978, RCAC provides a wide range of community development services for rural and Native American communities, agricultural workers and community-based organizations in 13 Western states. RCAC has strong core services and expertise in housing, environmental infrastructure (water, wastewater and solid waste), leadership training, economic development and financing.

Learn more about RCAC's Loan Fund products.

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About Citi

Citi, the leading global financial services company, has approximately 200 million customer accounts and does business in more than 140 countries. Through Citicorp and Citi Holdings, Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management. Additional information may be found at www.Citigroup.com or www.Citi.com.

Citi Microfinance:

Working across Citi’s businesses, product groups and geographies, Citi Microfinance serves more than 100 microfinance institutions (MFIs), networks and investors as clients in over 40 countries with products and services spanning the financial spectrum – from financing, access to capital markets, transaction services and hedging foreign exchange risk, to credit, savings, remittances and insurance products - to expand access to financial services for the underserved. www.citi.com/citi/microfinance

Citi Community Capital

Citi Community Capital (CCC) is a premier financial partner with nationally recognized expertise in financing all types of affordable housing and community reinvestment projects. CCC's origination, structuring, asset and risk management staff across the country provides creative financing solutions designed to meet their clients' needs. CCC helps community development financial institutions, real estate developers, national intermediaries and nonprofit organizations achieve their goals through a broad, integrated platform of debt and equity offerings. 

Calvert Foundation

Calvert Foundation is a nonprofit organization that provides the opportunity for investors to achieve financial returns while empowering people living in low-income communities in the United States and around the world. Calvert Foundation believes in creating a win-win, improving both the lives of those who receive investment dollars and the lives of our investors. A pioneer in the social impact investment field, Calvert Foundation investors have helped to create over 450,000 jobs for low-income individuals, built or rehabilitated 17,000 affordable homes, and financed close to 27,000 nonprofit facilities and social enterprises through their investment in Calvert Foundation's Community Investment Note. Learn more at www.calvertfoundation.org.

EDITOR'S NOTE: Calvert Foundation is a separate entity from Calvert Group Ltd. and its products should not be confused with any Calvert Group-sponsored investment product. In order to avoid confusion and be consistent when referring to Calvert Foundation in print news stories, always use "Calvert Foundation" as opposed to "Calvert" in headlines and subheads.

Opportunity Finance Network

Opportunity Finance Network (OFN), the leading network of private financial institutions, creates growth that is good for communities, investors, individuals, and the economy. Members of OFN are community development financial institutions (CDFIs) who deliver responsible lending to help low-wealth and low-income communities join the economic mainstream. Over the past 30 years, the opportunity finance industry has provided more than $30 billion in financing to underserved markets nationwide. In 2008, OFN Members financed more than 200,000 jobs, 600,000 housing units, 50,000 businesses and microenterprises, and 6,000 community facility projects. More information is available at: www.opportunityfinance.net.

 

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