CDFI Program Overview CDVCA Conference Panel

Transcription

1 COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS FUND CDFI Program Overview CDVCA Conference Panel PRESENTED BY Adam Martinez CDFI Program Manager PRESENTED ON March 12, 2014

2 CDFI Fund Overview Mission The CDFI Fund s mission is to increase economic opportunity and promote community development investments for underserved populations and in distressed communities in the United States. Vision Economically empower America s underserved and distressed communities. 3

3 CDFI Fund Overview CDFI Program Purpose: Promote economic revitalization and community development Help build the capacity of CDFIs to serve eligible Target Markets Leverage CDFI Fund resources 4

4 CDFI Program Overview CDFIs can and do provide responsible and affordable financing products and services to low-income communities CDFIs are mission driven organizations working in communities with challenging economic circumstances 5

5 CDFI Fund Overview CDFIs operate in a variety of organizational forms to meet the needs of credit, capital, and financial services in underserved target markets. CDFIs are: Housing, Business & Micro Loan Funds Community Development Venture Capital Funds Credit Unions Insured Banks and Thrifts Bank Holding Companies 6

6 FY 2014 CDFI Program: Types of Awards Financial Assistance (FA) Technical Assistance (TA) Healthy Food Financing Initiative Financial Assistance (HFFI-FA) 7

7 FY 2014 CDFI Program: Financial Assistance CDFI Program Financial Assistance (FA) Eligibility Award Type Certified & Certifiable CDFIs Applicants are required to provide dollar for dollar matching funds. Award Amount Category I/Small and/or Emerging CDFI Assistance (SECA) up to $700,000. Use of Funds Category II/Core up to $2 million. (i) Financial Products; (ii) Financial Services; (iii) Development Services; (iv) Loan Loss Reserves; and/or (v) Capital Reserves. Reporting Period Limitations on Awards 3 years (as specified in each Awardee s Assistance Agreement) Applicants may apply for either FA or for TA, but not for both. 8

8 FY 2014 CDFI Program: Technical Assistance Eligibility Award Type Award Amount CDFI Program Technical Assistance (TA) Certified, Certifiable, and Emerging CDFIs Grants with no matching funds requirement. Up to $125,000 for capacity-building activities. Use of Funds Reporting Period Limitations on Awards (i) Personnel/Salary; (ii) Personnel/Fringe benefits; (iii) Professional Services; (iv) Travel; (v) Training; and/or (vi) Equipment. 2 years (as specified in each Awardee s Assistance Agreement) Applicants may apply for either FA or for TA, but not for both. TA Applicants must be Certifiable or Emerging CDFIs or CDFIs that meet the SECA criteria but have not received an FA award in the past 5 years. 9

9 FY 2014 CDFI Program: Healthy Food Financing Initiative - Financial Assistance Eligibility Award Type Healthy Food Financing Initiative - Financial Assistance (HFFI-FA) Certified & Certifiable CDFIs Applicants are currently not required to provide dollar for dollar matching funds. Award Amount Use of Funds Up to $5 million (i) Financial Products; (ii) Financial Services; (iii) Development Services; (iv) Loan Loss Reserves; and/or (v) Capital Reserves. Reporting Period Limitations on Awards 3 years (as specified in each Awardee s Assistance Agreement) HFFI-FA Applicants must receive an FA award in order to receive a HFFI-FA award. 10

10 New CDFI Program Application in FY 2014 Design based on public comment Clearer assessment of financial viability and performance Greater flexibility for different institution types Application is no longer PDF and is now Excel based Application allows transfer of data for future years 3/17/

11 Enhanced Application Requirements in FY 2014 The 7 P s (Description of your CDFI s: ) Purpose Five year strategic goals and how you intend to use FA/TA funding Products Financial products and financial services Policies Processes for tracking the use of public/private funds, internal controls and Management Information Systems People - Key staff and board members Partnerships Ability and intent to leverage other public and private partnerships Performance Financial and organizational performance Projections Minimal Prudent Standard (MPS) Ratios, loan loss reserves/write offs, activity level and impact 12

12 Millions FY 2013 Award Results FY2013 Funds Requested and Awarded $400 $350 $300 $250 $200 $150 $100 $50 $0 FA CORE FA SECA TA Requested $395,551,314 $48,801,127 $8,121,862 Awarded $127,964,852 $18,721,000 $3,603,647 13

13 Overview of CDFI Program Awards FY Type of Organization Total Number of Applicants Total Number of Awards Rate of Acceptance Total Award Amount Average Award Banks/Thrifts/Holding Companies % $22,672,833 $1,133,642 Credit Unions % $77,468,451 $1,076,889 Loan Funds % $514,110,923 $988,290 Venture Capital Funds % $13,021,335 $1,046,372 TA Recipients % $7,429,180 $95,238 TOTAL 1, % $544,496,672 $837,687 7

14 CDFI Loans and Investments FY

15 Capacity Building Initiative Overview Expands technical assistance and training opportunities for CDFIs nationwide and significantly boost the ability of CDFIs to deliver financial products and services to underserved communities. Targets key issues currently affecting CDFIs and the communities they serve, including affordable housing and business lending, portfolio management, risk assessment, foreclosure prevention, training in CDFI business processes, and assistance with liquidity and capitalization challenges. Offers direct technical assistance and individualized capacitybuilding plans and focuses on extending CDFI coverage to underserved communities, especially in rural areas. To carry out the Initiative's objectives, the CDFI Fund has engaged established community development firms to provide training and technical assistance. 16

16 Capacity Building Initiative Summary Stats 62 Trainings in 25 different cities More than 5,500 Total TA Hours provided to more than 400 CDFIs More than 75 webinars viewed by more than 2,700 participants All developed materials located on CDFI Fund s Virtual Resource Bank ourcebanks.asp Initiatives FY FY 2012 Financing Healthy Food Options Foreclosure Solutions Portfolio Management CDFI Capitalization FY FY 2013 The Leadership Journey Innovations in Small Business Lending FY FY 2014 Scaling up Microfinance Strengthening Small and Emerging CDFIs CDFI Program Impact Evaluation Provider OFN NW NW NW NW Deloitte OFN OFN Reznick FY FY 2015 Financing Community Health Centers Preserving and Expanding CDFI MDIs The Leadership Journey II OFN Deloitte NW 17

17 Capacity Building Initiative Recommended Resource Bank Resources: Innovations in Small Business Lending: Growth Financing (training module and materials available) Steps for innovation Identifying Small Business Opportunities Market Assessment Assessing Capacity and Mission/Profit Alignment Assessing a Deal and Making it Happen Minority Depository Institutions (MDI) Training Series (resources coming soon) Improving Financial Health Accessing Capital Market Solutions Telling Your Story Reducing Cost Strategic Planning 18

18 Topics of Interest What is the main deterrent for CDVC applicants? What makes the CDVC target market unique? How does a CDVC measure community development impact? What role does the matching funds requirement play in CDVC applicants and awardees? Is it a deterrent? What is an appropriate performance period for CDVCs? 3/17/

19 Contact Information Visit the CDFI Fund s website at CDFI Fund Program Support: cdfihelp@cdfi.treas.gov , option #1 Adam Martinez, CDFI Program Manager martineza@cdfi.treas.gov