Lexington, Ky. – Community Ventures, Fahe, and Kentucky Highlands Investment Corporation have closed on a total of $40 million in bonds as part of the United States Treasury Department’s CDFI Bond Guarantee Program.
Only seven community development financial institutions (CDFIs) closed on the multi-party bond, and three of them are in Kentucky. With a total of $127 million, it is the largest group of bond participants in a single bond issue to date.
“Community development resources are shrinking every day,” said Kevin R. Smith, president and CEO of Community Ventures. “These resources will breathe new life into many projects across our commonwealth – projects to create jobs and better places for Kentuckians to live. We can’t thank the CDFI Fund and OFN enough for making it happen.”
The CDFI Bond Guarantee Program is designed to provide CDFIs with the long-term, reliable capital they need to stimulate development in low-income and under-resourced communities. Marking the third year of the program, this bond is part of a landmark round with $327 million in bonds issued.
“This is game-changing and transformative,” said President and CEO of Fahe Jim King. “Thirty years of fixed money in the hands of CDFIs in Appalachia makes all the difference whether or not really important housing gets done. It allows us to focus on the task at hand and utilize our expertise in providing life-changing resources.”
Community Ventures, Fahe, KHIC and the other participants in this bond have the capacity to put long-term, fixed-rate, affordable capital to work across a broad geography, serving more under-resourced communities than ever before. The participants in the multi-party bond are:
- Community Ventures (Lexington), $15 million
- Fahe (Berea, Ky.), $15 million
- Kentucky Highlands (London, Ky.), $10 million
- Chicago Community Loan Fund (Chicago), $28 million
- Citizens Potawatomi Community Development Corporation (Shawnee, Okla.), $16 million
- New Jersey Community Capital, (New Brunswick, N.J.) $28 million
- Bridgeway Capital (Pittsburgh), $15 million
“This unprecedented opportunity will help spur investment and job growth in the region,” said Jerry Rickett, president and CEO of Kentucky Highlands. “It also will help us maximize exciting efforts under way, such as SOAR and the Promise Zone.”
Opportunity Finance Network (OFN) was the qualified issuer.
“OFN is proud to have issued this multi-party bond for our member CDFIs to catalyze critical economic development in underserved areas throughout our country,” OFN Chief Operating Officer Cathy Dolan said.” This bond is a testament to the financial strength of our Member CDFIs, and a reflection of their effectiveness in providing access to responsible and affordable capital where it is needed most. Through this $127 million, multi-party bond, OFN Members like Community Ventures, FAHE and KHIC can reach further into tough markets to make a real difference. “
Enacted as part of the Small Business Jobs Act, the CDFI Bond Guarantee Program is an innovative federal credit program designed to function at zero cost to taxpayers. It provides eligible CDFIs access to long-term, fixed rate, affordable capital to encourage economic growth and development.
To learn more about how OFN connects CDFIs to critical financing, visit ofn.org. For more information on how the US Treasury Department’s CDFI Fund provides new access to capital to under-resourced communities, visit cdfifund.gov.
About Community Ventures
Community Ventures strengthens communities by helping people achieve their dreams of greater economic opportunity. From affordable financing to education to neighborhood revitalization, our areas of focus offer the opportunity to dramatically improve the quality of life for people across Kentucky. For more information, visit www.CVKY.org.
Fahe provides Appalachian families the tools they need to build a better life through affordable housing, job creation, and the establishment of healthier communities. Fahe is a network organization comprised of 50+ members serving the Appalachian areas of Kentucky, West Virginia, Virginia, Tennessee, Alabama, and Maryland.
Since its inception in 1980, Fahe and its members have guided over 200,000 families to better lives, made over $469 million in direct investment to the region, and achieved a total cumulative financial impact of over a billion dollars. www.fahe.org
About Kentucky Highlands Investment Corporation
Kentucky Highlands Investment Corporation, founded in 1968 to stimulate economic growth in nine counties in Southern and Eastern Kentucky, now serves 22 counties in the region and has created more than 20,000 jobs. For more information, visit http://www.khic.org.