CRFUSA

Post-Recession Blues

2012-02-09T08:43:00.003-06:00

Post-Recession Blues

Companies that weathered the recession now have a new problem – refinancing debt

by Brian Burke, National SBA Lending Director

Typical post-recession scenario: ABC Company calls their bank to say that they’ve weathered the recession and they actually expect to turn a profit this year. But they’re totally stressed out about their high debt service payments. What’s to be done?

ABC Company is just one of many companies that are starting to see the light at the end of the recession tunnel. Now the biggest thing getting in the way of a full recovery is debt financing that’s sapping them dry. And ironically, their bank can’t help them, usually because of regulatory constraints.

Enter CRF. We come to the rescue in these types of situations, and now offer flexible loan programs such as the SBA 7(a) program. These programs make a huge difference in cases when it’s difficult if not impossible for companies to refinance their loans with traditional lenders.

In fact, this week, we extended a $1.2 million SBA 7(a) loan to a great mid-sized Minnesota company. They’ve got everything going for them – good credit, great prospects, loyal employees – but were still trying to emerge from the shadows of the Great Recession. While they were able to remain current on all their debts, financial difficulties from previous years resulted in a balance sheet that was improperly structured and hampered their ability to move forward, make needed changes, and grow.

With their new 10-year CRF SBA loan, they can expand, add jobs and comfortably meet all of their obligations. We’ll tell you more about them in future blogs.

Know other companies like ABC Company? Help us find other companies that need CRF’s help and together, let’s put an end to these post-recession blues.

2011-09-09T09:27:00.002-05:00

Looking forward: New tools, new partnerships required to fund jobs, rebuild communities
Our vision for the community development industry

Frank Altman, President & CEO
Community Reinvestment Fund, USA

What’s the right size for government?

The federal budget battle has Americans discussing that question from Pennsylvania Avenue to Main Street. For the community development finance industry, a sector long reliant on tax credits, financial assistance grants, and guaranteed lending programs, the current debate is a wake-up call for how we do business.

The need for living wage jobs, affordable housing, and strong communities remains as urgent as ever.

Yet can our traditional financing vehicles, and even our traditional industry model, still answer this demand?

Traditional vehicles in jeopardy
Continued availability of New Markets Tax Credits (NMTC) allocations, CDFI Fund awards, and free-flowing capital markets remains uncertain in these anemic economic times. Even products with government guarantees, such as SBA 7A or SBA 504 loans, sit well out of reach for many lenders, due to strict requirements for balance sheet equity. Other options, like the new CDFI bond program, add liquidity to the market, but ignore smaller lenders unable to borrow in $100 million increments.

These are the critical tools that enable community lenders to support the small businesses that create jobs, and the projects that revitalize our low-income neighborhoods. But a “status quo” approach won’t be enough to get the job done.

We as an industry need to expand our financing options to deliver capital quickly and efficiently. We need to strengthen our relationships and develop a new, more collaborative network.

Defining a new, collaborative approach
More than 20 years ago, CRF pioneered a new method of accessing the capital markets to benefit small business owners and underserved neighborhoods. Today, our vision for community development finance means continued innovation—this time, to enable sustainable solutions and new partnerships that facilitate job creation and support disadvantaged communities.

These solutions include:
• A renewed commitment to collaboration. Tough credit markets require new partnerships among CDFIs, CDCs, community banks, and market-rate investors. National networks like CRF can play a matchmaking role to facilitate a value chain where all parties work together to maximize funding options. We must create relationships that empower multiple entities to work together quickly and seamlessly—as primary and secondary lien holders, poolers, packagers, project sources, and other roles.

• Options for smaller community development groups. Financing tools must remain accessible to organizations at all levels—not just those CDFIs who can afford multi-million dollar balance sheets. Preserving the local market knowledge of these groups is critical to identifying deserving projects, and providing business owners with technical assistance and hands-on support through all stages of their business.

• Pursuit of policies that support jobs and low-income communities. We applaud new alternatives such as the CDFI bond program, and actively advocate for proven channels like New Market Tax Credits. As an industry, we must continue to come together and tirelessly articulate the need for accessible, affordable small business financing options.

We’re excited about these opportunities and relationships. Watch for more details in the coming months.

Share your views on this critical issue.

NMTC Allocation 2011

2011-02-25T10:54:00.000-06:00

The Power of 21
By Frank Altman, President and CEO

New Markets Tax Credit (NMTC) loans are the funds that keep on giving.

For every $1 they receive in NMTC loans, business owners in low-income areas generally are able to bring in an additional $21 in private sector investments. Private investors are motivated to invest in these businesses because the NMTC program offers them tax credits worth more than 30 percent of the amount they invested.

1:21 ratio? Not bad.

We just learned that CRF was one of 99 organizations chosen from a pool of 250 applicants to receive $77 million in new NMTC funds. The $77 million allocation was the largest amount awarded to 2010 applicants (only three organizations received this amount). Since the program began in 2001, CRF has received $674.5 million in NMTC allocations, making us one of the nation’s largest NMTC designees.

Congress reauthorized NMTC as part of the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010. All told, the tax credits allocated last year came to $3.5 billion. Applicants had requested more than $25 billion, clearly demonstrating the appetite for investing in low-income communities throughout the U.S.

This new NMTC allocation will play a key role in driving capital to small businesses, who are the key drivers behind our economic recovery and job creation.

At a time when we’re all doing our best to find ways to extend a helping hand to low- and middle-income families and communities, this is truly news worth celebrating.

New Hope for Small Businesses On the Edge

2011-02-24T13:47:00.000-06:00

New Hope for Small Businesses On the Edge
By Colleen Schwarz, VP of Sales

Last week, the SBA (Small Business Administration) announced a new set of rules for its 504 refinancing program. This program now gives new hope for the “neediest” small businesses that are teetering on the edge between making it and going under.

The SBA said it would temporarily extend its 504 refinancing program to allow small businesses “without business expansion plans” to refinance their mortgage debt. (In our last blog, we announced that the Morgan Stanley SBA 504 program was available through CRF, (see “Giving Small Business Lending a Jumpstart”).

What does this mean exactly? It means there’s new hope for small businesses that are in dire need of assistance. Those businesses with a mortgage renewal due date before the end of 2012 (including some that are potentially facing foreclosure) now have a new lifeboat.

We know there’s a huge pent-up demand by small business owners who need a longer-term solution to their debt issues.

Take, for example, a business that moved into their own building a year ago, when banks weren’t offering long-term financing. The business owner may have taken out a three-year loan, and now has to find some way to refinance it. The new rules enable the owner to refinance and restructure this debt into a fully amortizing program, even if they have no plans to expand or purchase real estate or other fixed assets.

Because there’s “only” $15 billion available for this temporary new program, the SBA is limiting the program to the “neediest” small businesses. However, they do plan to open the program up later (at an unspecified date) to other small businesses, if they haven’t exhausted the finances allocated for this program.

The new SBA lending rules should help drive much-needed capital to businesses and the surrounding communities, helping them avoid the worse-case scenarios, like closing their doors.

SBA’s goal with this program is squarely on saving small businesses that are on the brink. The SBA will refinance debt even if the small business has no plans to expand, add jobs, or meet any other higher objectives. And the new refinance rules also do not allow small businesses to refinance government program debt (SBA 7a) or an existing SBA 504 loan.

So it’s a proverbial finger in the dike. But at least it’s a start.

For more information on the SBA’s 504 Loan Program Debt Refinancing Program, go to: http://files.e2ma.net/1963/assets/docs/504_refinance_field_training021611.pdf

Morgan Stanley SBA 504 Program

2011-02-10T10:16:00.002-06:00

Giving Small Business Lending a Jumpstart
By Frank Altman, President and CEO

If your car won’t start – something we get to experience living here in Minnesota –getting a jumpstart is a simple phone call to a three-letter organization.

Now, CRF (another three-letter organization) has a simple solution for giving a jumpstart to get small business lending running again.

Thanks to a new program, the Morgan Stanley SBA 504 Program available through CRF, we will be able to drive much-needed capital to businesses and the surrounding communities, helping them move forward in the right direction.

Here’s how it works: CRF works with Morgan Stanley to purchase eligible existing loans (new or existing first mortgages) from the banks across the country. This gives the bank the capital needed to turn around and issue new small business loans.

Morgan Stanley is making this program through CRF, playing on its network of lending partners and credit experience. By facilitating the purchase of these loans, CRF helps banks reignite small business lending, build their customer base and ultimately increase their bottom line. Plus, it helps banks meet their CRA (Community Reinvestment Act) requirements.

At a time when credit constraints have put a stranglehold on small business financing, we need creative solutions like this. It’s just one more way CRF is helping small businesses across the country access the financing they need improve cash flow, refinance debt, expand and create jobs.

Read more about the Morgan Stanley SBA 504 Program, now available through CRF: www.crfusa.com/SBA504.

State of the Union Statement

2011-01-28T14:31:00.004-06:00

Putting America Back to Work:
Reauthorize the New Markets Tax Credit for Job Creation in Low-Income Communities

Statement by Frank Altman, President and CEO

We at the Community Reinvestment Fund, USA (CRF) wholeheartedly support President Obama’s State of the Union call to get American companies back in the businesses of creating jobs. The President noted that the stock market is strong, corporate profits are up and the economy is growing. Yet unemployment remains unacceptably high and for the most part the strengthening economy has yet to reach into America’s low-income communities, whether rural or urban.

Carolina Reid writing in the Federal Reserve Bank’s Community Investments cited Gregory Acs and wrote “The consequences of unemployment for low-income communities may also be higher; lower-income households experience greater income losses (as a percentage of income) during recessions, and it takes them longer than higher-income households to get back on their feet. Unemployment can have particularly devastating effects on single-parent households, as well as on households that have come to depend on two full incomes to make ends meet.”1

As we climb out of this recession, the imperative for job creation is clear and focus on low-income communities is compelling. That has been CRF’s focus since its beginning 23 years ago, having now lent $1.2 billion for community development. Just last month CRF’s Board of Trustees adopted our new strategic plan and that plan renews and strengthens CRF’s emphasis on job creation. It is and will be our #1 focus.

So we join with President Obama and the Congress. CRF pledges to do its part to get America’s small businesses moving and creating jobs. And we will continue to focus our energies on America’s low-income communities and disadvantaged populations. We have set for ourselves the goal of financing $290 million in community development projects in this next year. That amount will surpass our strongest year by almost 40%.

These loans will support jobs and strengthen the social ecosystem that supports those jobs, particularly in low-income communities. These loans will finance small and medium-sized businesses; they will build affordable housing, child care centers, community clinics, ESL and GED centers, workforce training centers and community centers. They will help people build their strong communities.

There is one tool that CRF and the CDFI industry can put to use right now; a tool that Congress can act on quickly. The New Markets Tax Credit (NMTC), enacted in a bipartisan manner in 2000, has over the years attracted $26 billion of private investment into low-income communities.2 It has been a great success. It is awaiting reauthorization.

The NMTC reauthorization got held up in the year-end politics over the Tax Extenders bill last year. But it need not be held up now. It has bipartisan support. It has a pedigree of performance. It has community developers all over the country ready to put it to use creating jobs. And because the NMTC by law is restricted to use only in low-income communities, those jobs will go where they are needed the most.

We at CRF call on Congress and President Obama to quickly reauthorize and sign the New Markets Tax Credit extension.

In his speech, President Obama said “We measure progress by the success of our people. By the jobs they can find and the quality of life those jobs offer. By the prospects of a small business owner who dreams of turning a good idea into a thriving enterprise.”

That measure is the most compelling argument for extension of the New Markets Tax Credit. Give us the tool and we will help small business owners turn those dreams into jobs.

1 Reid, Carolina (2009). “Addressing the Challenges of Unemployment in Low-Income Communities” Federal Reserve Bank of San Francisco, Community Investments, Vol. 21, No. 1, Spring 2009.
2 Community Development Financial Institutions Fund, Performance and Accountability Report Fiscal Year 2010, January, 2011.

2010-11-30T15:27:00.003-06:00

A SAGE Loan, A Smart Move
By Frank Altman, President and CEO

Great story in Monday’s Minneapolis Star Tribune about SAGE Electrochromics and its “green” window technology!

It’s even better when you know that four years ago, CRF and its lending partner, Minnesota Community Capital Fund, gave SAGE a $225,000 gap loan, which helped them get a jump-start on their $4.8 million office and plant expansion.

Keep in mind this was long before the state and city stepped up to offer them grants, loans and tax incentives, before the federal government offered SAGE a guaranteed loan and millions in tax credits and before big electric coops came offering low-interest loans.

Our SAGE loan sure was a smart move.

Thanks to the loan, SAGE was able to build its new offices and plant and improve its “smart glass” technology. This technology, which is manufactured only by a handful of companies worldwide, features electronically controlled tinting that cuts harmful sun rays and reduces energy (i.e. air conditioning) costs.

Since CRF and MCCF gave SAGE its initial loan, they have attracted millions in capital from private investors. They also enjoy business subsidies from government agencies that offer incentives to help boost employment and energy conservation. (The SAGE technology is seen as a boon to the nation's power grid because it could dramatically reduce air-conditioning needs when electrical demand is highest.)

SAGE doesn't yet make a profit, but SAGE’s founder and CEO expects they will join the list of successful Minnesota window and glass companies like Marvin Windows and Andersen Windows.

We believed in the sagacity of their strategy back then. We believe in them still.

Only now, we have a lot more company.

2010-11-17T09:30:00.001-06:00

Thanks for Giving to the Max

By Frank Altman
President and CEO

Thank you to everyone who gave to CRF on “Give to the Max Day.”

As a result of your generous support, CRF raised $9,675 that we will use to help create jobs and build stronger communities.

Thanks to you, we can help small business owners access the finances they need to expand and grow, hire new employees and succeed.

Since 1988, CRF has helped businesses create or retain more than 44,000 jobs in low- and moderate-income communities. More jobs means thriving communities and a better quality of life for everyone.

Thank you again for your donation that will help us change people's lives for the better.

The Economic Recovery Starts with YOU

2010-11-16T08:22:00.001-06:00

The Economic Recovery Starts with YOU
Support CRF Today on “Give to the Max Day”

Today is “Give to the Max Day,” when your donated dollars to CRF go even further. Here’s a link to CRF’s page: http://givemn.razoo.com/story/Community-Reinvestment-Fund-Usa.

When you give to CRF today, we have a chance to win an additional $10,000 or $20,000 that we can use to help create jobs and build stronger communities. Plus, one donor will be randomly chosen every hour throughout the day and their chosen charity will win an additional $1,000 grant.

Times have been tough for small business owners – this recession has hit them hard. Most simply can’t access the funds they need to grow, make needed updates or hire new employees.

You can make a difference. Supporting CRF helps create jobs, ensuring long-term growth and stability for communities in need. The economy recovery starts right here, right now, with YOU!

Here’s what a couple of our donors have said about why they give to CRF:

“CRF brings capital to communities in need and gives small business loans to people who can’t get them from conventional lenders. For me, it all comes down to strengthening communities by creating jobs and helping people help themselves.”
Cate Hillesheim, Financial Analyst, Tornier

“I give to CRF because I believe in the mission. It moves me. They literally change people's lives. They transform the whole of a community. Their ROI (return-on-investment) as a philanthropic organization is in a class of its own.”
Alicia Phillips, President, Redwood Philanthropic Advisors

Please share this with friends who share your concern for job creation and building stronger communities.

Thank you for your support!

P.S. Do you have a Facebook, LinkedIn or Twitter account? Please update your status with one of these suggested “tweets:”

I'm giving to CRF-USA on "Give to the Max Day” because CRF is about creating jobs http://bit.ly/azg0hZ

I have friends out of work – who doesn’t? That’s why I’m supporting CRF on “Give to the Max Day.” http://bit.ly/azg0hZ

CRF gets my donation on “Give to the Max Day” because they are helping create American jobs http://bit.ly/azg0hZ

2010-11-15T14:41:00.001-06:00

Why I Give to CRF: Because They Make Dreams Come True
By Cate Hillesheim, Financial Analyst, Tornier

I interned at CRF back in 2008 working in development, where I helped with prospecting and grant writing. During the year I was there, I wrote a lot of the success stories about CRF’s clients, particularly those in Minneapolis.

[Note: CRF employs several interns during the summer months and throughout the school year.]

My favorite story was about La Perla Tortilleria, which is right down the street from where I lived in South Minneapolis. What particularly struck me was the dedication and persistence of La Perla’s owner, Jose Payan. With CRF’s help, he was able to secure the financing he needed to really grow his business and transform La Perla Tortilleria into a thriving wholesale operation, selling tortillas to restaurants, grocers and large wholesalers throughout the state.

CRF’s loan allowed him to purchase a new building, new equipment, and make necessary property improvements. In addition, as part of the expansion, Jose was able to hire new employees.

I can now find La Perla tortillas at my local grocery store!

My experience at CRF helped develop my interests and career path. Working in development at CRF allowed me to see the huge impact CRF has on communities all across the U.S. I heard firsthand the stories of individuals who were able to make their dreams come true.

CRF brings capital to communities in need and gives small business loans to people who can’t get them from conventional lenders. For me, it all comes down to strengthening communities by creating jobs and helping people help themselves.

I hope that anyone who’s reading this will join me in giving to CRF on Tues., Nov. 16 during “Give to the Max Day,” when you can stretch your dollars to make an even greater impact on communities and helping people’s dreams come true.

Why I Give to CRF: Because They Change People’s Lives

2010-11-11T14:44:00.000-06:00

Why I Give to CRF: Because They Change People’s Lives

By Alicia Phillips
President, Redwood Philanthropic Advisors

I give to CRF because I believe in the mission. It moves me. They literally change people's lives. They transform the whole of a community. Their ROI (return-on-investment) as a philanthropic organization is in a class of its own.

I first learned about CRF and the great work they’re doing several years ago after my husband heard Frank (Frank Altman, CRF president) speak.

CRF is able to impact a community’s entire “ecosystem” which includes jobs, plus affordable housing, childcare centers, schools, community centers and health care clinics. These core assets are lacking in many poor communities. CRF is needed all across the country to make a difference in low-income urban and rural environments.

CRF and their lending partners can leverage the heck out of a dollar. Taking $20 million in donations over 20 years and turning it into $1.2 billion in loans to urban and rural communities across the country is phenomenal.

They get things done that “move the needle.” A CRF loan is a gift that keeps giving, because their gift stays in circulation – usually an entrepreneur who can use that loan to grow, expand, add more employees and become a successful contributor to the community.

I’m thinking about several loans they’ve made: to the La Perla Tortilleria or Morningstar Coffee & Tea for example. It all adds up to jobs. Jobs keep the community throbbing. And every job represents a family who lives and works in the community.

I hope that anyone who’s reading this will join me in giving to CRF on Tues., Nov. 16 during “Give to the Max Day,” when you can stretch your dollars to make an even greater impact on job creation and successful community “eco-systems.”

Support CRF on “Give to the Max Day” Nov. 16 and S – t – r – e – t – c – h Your Dollars

2010-11-10T11:17:00.002-06:00

Support CRF on “Give to the Max Day” Nov. 16 and S – t – r – e – t – c – h Your Dollars

This coming Tues., Nov. 16 is “Give to the Max Day,” when tens of thousands of individuals will donate money to their favorite charities.

The best part? On this day, you s – t – r – e – t – c – h your donation to CRF and enable us to win even more money that can be used to help create jobs and build stronger communities.

So please join us on Nov. 16 by logging in to CRF’s GiveMN page and donating. No amount is too small! There’s no better day than Nov. 16 to make your donation really count.

Your donation helps us continue to touch the lives of families, business owners and communities across the country. CRF provides funding for small business owners and entrepreneurs to expand their businesses and add employees.

Last year, CRF raised more than $15,000 on Give to the Max Day. This year, CRF hopes to raise $20,000. Just think of what that could do for our neighborhoods and communities!

Throughout Give to the Max Day, an individual donor will be randomly chosen every hour to have an additional $1,000 given to the charity that received the donor's original donation. That could be you! In addition, GiveMN is awarding $20,000 and $10,000 grants to the two nonprofits that attract the largest number of individual donors on Give to the Max Day.

Remember to share this with any of your friends who share your concern for job creation and building stronger communities. Log onto CRF’s GiveMN page on Nov. 16 and donate any amount. Thank you for donating any amount – and we promise to s – t – r – e – t – c – h your dollars as far as they will go!

2010-11-08T13:34:00.004-06:00

The Power’s On at Keller Electrical
By Warren McLean, VP of Development

Aren’t grand openings just grand?

They are especially when we get to play a major role, like we did in the grand opening of Project High Voltage, a new $15.9 million, 106,000 square-foot facility built by Keller Electrical Industries of Phoenix, Ariz.

The grand opening took place on Nov. 5, when Keller Electrical showed off its new 106,000 square-foot facility. They currently have about 100 employees, but the new facility means they can add 125 new jobs by 2015, all within a redeveloping low-income neighborhood near the Sky Harbor Airport. The attractive new facility is a welcome addition to this area, where 38% of the residents live below the poverty line and the median family income is nearly half that of neighboring communities.

The Southwest’s leading provider of industrial motor repair, manufacturing and installation services, Keller Electrical has been serving its community for over 25 years. Proportionally, small businesses like Keller Electrical pay more for energy than large firms, making them more vulnerable to price increases. Keller Electrical realized the key to its future success lay in controlling costs through green building improvements, and thus set in motion the plans for this this new facility.

Project High Voltage was a complex project involving land acquisition, equipment purchases and facility construction to replace the company’s current leased location. All of Keller Electrical’s operations, manufacturing, repair, engineering, design and distribution needs were moved to the new facility, which also features 270 kilowatts of rooftop solar power generation that could cut the company’s power usage by half.

When Keller Electrical sought financing for Project High Voltage, they faced a gap between the sum needed – nearly $16 million – and what banks were willing to loan. Their primary lender, Colorado Business Bank, explored supplemental financing to complete the deal.

Because the property Keller Electrical was eying for this facility was located in a low-income community, the project qualified for New Markets Tax Credit (NMTC) financing. Colorado Business Bank was able to finance approximately $8.8 million of the project, and U.S. Bank invested NMTC equity to complete project sources. CRF helped bring the project to fruition by offering NMTCs to equity investors.

A Waste of a Perfectly Good Federal Tax Credit

2010-10-19T09:44:00.003-05:00

A Waste of a Perfectly Good Federal Tax Credit

By John Hess, VP Sales, RetroTax a division of Associated Consultants Inc.

What a waste! Some companies are sitting on thousands of dollars of unused tax credits.

All for-profit employers are entitled to receive tax credits for hiring employees with certain demographics or backgrounds who live in designated geographic areas. Companies are either unaware of the programs or have not pursued them because of the administration involved.

This list of people is long, and it includes those who have been disconnected from the workforce for a variety of reasons. Veterans, ex-cons, recipients of food stamps or in TANF (Temporary Assistance for Needy Families) all qualify. So do teens who had summer jobs but are not going back to school in the fall (other criteria apply).

Residents of the Hurricane Katrina disaster zone and those who live and work in federally designated Empowerment Zones and Renewal Communities are also eligible. The complete list is here: http://www.doleta.gov/business/incentives/opptax/PDF/WOTC_Fact_Sheet.pdf

Companies who hire anyone from this long list of people who face significant employment barriers are eligible for the Work Opportunity Tax Credit program (WOTC), a federal tax credit incentive.

The main objective of WOTC is to enable these disenfranchised workers to gradually move from economic dependency into self-sufficiency as they earn a steady income and become contributing taxpayers. WOTC joins other workforce programs that encourage workplace diversity and facilitate access to good jobs for American workers.

At the same time, participating employers reduce their federal income tax liability. Federal tax credits range from $1,500 - $4,800 per eligible employee and can be used by companies to offset their federal tax liability. Companies can even capture tax credits retroactively from employees they’ve hired up to three years prior.

Additional information about these valuable incentive programs is available from your tax professional or contact John Hess at (815) 893-0498 or john.hess@retrotax-aci.com, or visit http://retrotaxaci.com/.

High Touch Servicing: A Win-Win-Win All Around

2010-10-05T13:02:00.002-05:00

High Touch Servicing: A Win-Win-Win All Around

By Dick Hebl, Vice President/Servicing Operations

For every one person who undergoes a foreclosure or declares bankruptcy, hundreds of other homeowners and small businesses are quietly working hard to stay afloat during the lingering recession.

In a time when housing prices have plummeted and unemployment is rampant, borrowers need a more personal, high-touch approach that enables them to weather the economic storm. A new, more flexible approach not only helps financially strapped borrowers, it also helps community development lenders improve the performance of their loan portfolio. And that’s crucial for leveraging scarce community development dollars.

CRF has come up a fresh, more personalized approach to loan servicing that helps community development lenders build trust and rapport with their borrowers while reducing the number of loan defaults. Our “smart” servicing monitors loan activity more closely, allowing lenders to spend more time meeting the needs of their borrowers and communities.

Let me illustrate by telling the story of Dave Moser.

Dave owns Triangle Warehouse, a trucking and storage company in Greensboro, N.C. He has a business loan from CRF, GE Money and People’s Self Help, a local non-profit. Faced with a cash flow shortage, Dave contacted our servicing department and asked if we would modify his payment schedule temporarily.

We worked with Dave and reduced his minimum loan payment for six months simply by obtaining more collateral. Dave used the extra cash to seize a new business opportunity – liquidator inventory management. Now Triangle Warehouse is more profitable than ever.

A “high-touch” approach to servicing gave Dave the leeway he needed and prevented him from defaulting on the loan, which would have put his credit rating and employees at risk. And it enabled him to take advantage of a new opportunity to improve and expand his business.

Now that’s what I call a win-win-WIN!

CRF is now providing loan servicing to lenders with non-traditional residential and business loans that require a higher level of servicing, such as community development financial institutions (CDFIs), cities, municipalities, and regional economic development organizations. For more information, go to CRF Contract Loan Servicing.

Small business loan programs need cash ASAP

2010-09-10T09:36:00.003-05:00

Small business loan programs need cash ASAP

By Frank Altman

CNN Money recently ran an excellent article about the dire straits that state economic development programs are currently in, having fallen victim to the recession and state budget shortfalls.

Many of these state programs, which marry private lending with state dollars, are running out of cash, and states can't afford to shoulder the burden on their own.

The irony is that these programs are remarkably successful, cost relatively little to run and create jobs. Like CRF, these state programs also lend to small businesses that can’t get loans from banks and other mainstream financial institutions.

Loans from state programs and community development financial institutions like CRF, are a lifeline at a time when small businesses are still struggling to access credit. In the last two years, $40 billion worth of bank loans has evaporated according to bank reports submitted to the government.

What’s wrong with this picture? Job growth is the engine that will bring us out of the recession, but right now the economic flywheel is spinning viciously in the wrong direction. Instead, we all need to put our shoulders to the wheel and get things moving in the right direction -- towards job creation.

The Obama Administration has been trying to pass a small business bill for months that would cut taxes and provide loans to small businesses aimed at creating new jobs. Held up in the Senate, the bill would provide a $30 billion lending fund for small and mid-sized banks (assets less than $10 billion) to encourage them to make loans to small businesses. It would also provide $300 million to community development lenders, many of whom are clients of CRF, so that they can get the jobs wheel spinning in low-income communities.

Another bill stalled in the Senate would aid small business and job creation by renewing scores of individual and small business tax breaks. Passage of a tax extenders bill would also provide an additional $5 billion in New Market Tax Credits in 2011 targeted exclusively to businesses located in low-income communities.

CRF leads the industry in identifying opportunities to use the New Markets Tax Credit (NMTC) program to deliver low-cost capital to our lending partners and the small businesses they serve. Just ask Tim Ports, who was able to retain 40 employees and add several more to his fish wholesaling business. I know he would agree that the NMTC loan helped keep his business above water, even during rough seas (pardon the puns).

The NMTC and state programs are great examples of what we can do to create jobs in America. Let’s focus on what we know will work to help America’s small businesses so they can go about their business of putting people back to work and reconnecting with their vision of the American Dream.

It’s Time to Bring CRA Current

2010-09-03T09:00:00.000-05:00

It’s Time to Bring CRA Current

By Warren McLean, CRF V.P. of Development

I was recently in Chicago at a public meeting to discuss changes to CRA, the Community Reinvestment Act.

Hosted by the Federal Financial Institutions Examination Council and the Federal Reserve Bank of Chicago, the hearing was one of several to discuss CRA, the 1977 law designed to encourage commercial banks and savings associations to help low- and moderate-income borrowers in their areas.

Without question, CRA has been the catalyst for economic and community development in many of America’s distressed, underserved and disaster-stricken communities. CRA is vital to ensuring those living in these areas can access the resources they need to rebuild and revitalize their communities.

But it’s definitely time to bring this 33-year old law current. Here are six ways I think the CRA mandate could be made even stronger:

1. Expand banks’ geographic scope. National and Web-based banks could provide credit to many more low- and moderate-income communities simply by lifting the current antiquated geographic restrictions.

2. Give CRA credit for all CDFI-related loans. Non-profit CDFI (Community Development Financial Institutions), which are experts at delivering credit and capital to low-income communities, should receive CRA credit for all loans or investments, regardless of whether the institution is located or active in a bank’s CRA assessment area.

3. Grant CRA credit for pooled investments. This is an easy one, since CRF has long advocated for greater use of pooled investment vehicles to deliver capital to distressed communities. Naturally, we think pooled investment vehicles should also qualify for full CRA credit.

4. Increase loans to small businesses. This is also a no-brainer, since we think that economic recovery will depend on increasing CRA-eligible loans for small businesses across the country.

5. Give CRA credit for long-term loans. Under current CRA regulations, banks are rewarded for making short-term investments that match CRA cycles. We think banks should receive CRA credit for loan terms that match the needs of CDFIs and communities they serve, including long-term loans – and not just those that match the short-term CRA cycle.

6. Incentivize banks for investing in CDFIs. Grants and incentives are great ways to enhance CRA-eligible community development loans. Grant dollars are extremely helpful but often hard to raise, especially in challenging economic conditions. Equity or equity-equivalent investments are great because they enable CDFIs to attract and leverage significant private sector capital that can be reinvested in underserved communities. We think CRA regulators should give special consideration to banks that make equity or equity-equivalent investments in CDFIs.

I think the best way to ensure CRA’s continued effectiveness is by getting involved in these types of hearings. Stay tuned for updates on our participation in helping CRA move forward and fulfill its mission.

A Shot in Our Arm – New Grants Support CRF’s Mission

2010-08-27T10:33:00.002-05:00

A Shot in Our Arm – New Grants Support CRF’s Mission

By Warren McLean, Vice President of Development

CRF has recently received several grants that gave us just the shot in the arm we needed.

The recession continues to affect credit-starved small businesses and distress our communities. One block, one business, one community at a time, CRF is playing a vital role in helping bring about meaningful economic recovery.

These grants will help CRF offset the declining availability of credit, helping small businesses retain and add employees, improve their facilities and get to the next level in their business growth.

The Minnesota Department of Commerce, Office of Economic Security awarded CRF a $500,000 grant to help small businesses improve the energy efficiency of their facilities.

Bank of America gave us a $100,000 grant for general operating support.

The Minneapolis Foundation awarded us $50,000 for our work supporting Minneapolis-area non-profits and small businesses, including minority, immigrant and women business owners.

The Richard and Ethel Herzfeld Foundation gave us a $50,000 grant (one in a series of gifts to CRF) to help us target distressed communities in Milwaukee.

The GE Money Bank gave us $25,000 to help fund community lending programs in the Twin Cities and ensure that minority, immigrant and women business owners have the resources they need to invest in their businesses.

Chase awarded CRF $125,000 to bring our high-touch mortgage servicing approach to affordable housing organizations in six new states – Illinois, Florida, Michigan, New York, Ohio, and Texas (see “A Place to Call Home” ).

A great big thank you to all CRF funders and supporters!

A Place to Call Home

2010-07-27T09:02:00.005-05:00

A Place to Call Home

By Frank Altman

Rasheda Pettiford just needed a place to call home.

In September 2009, Pettiford, a single mom raising two daughters, watched helplessly as her landlord raised the rent on the St. Paul apartment she had lived in since 2007. She had finally started working as a carpenter, after spending three years in training. But she simply couldn’t afford the newly raised rent. With less-than-perfect credit and no other options, Pettiford moved into a friend’s house.

Thanks to the Sustainable Home Ownership Program (SHOP) and high-touch servicing from CRF, everything has changed. With a new job and her credit on the mend, Pettiford is on the way to owning her own home – something that was unthinkable just months earlier.

CRF has been creating success stories like Pettiford’s all across Minnesota and California for the past 14 years. Now, a $125,000 grant from Chase will enable CRF to bring its high-touch servicing approach to affordable housing organizations in six new states – FL, IL, MI, NY, OH and TX.

Pettiford’s success story never would have been possible with a traditional bank loan. CRF’s partners in the program, the Greater Metropolitan Housing Corporation and Dayton’s Bluff Neighborhood Housing Service, offered financing for Pettiford’s foreclosed property, while CRF provided the necessary, highly personalized, hands-on servicing.

SHOP helps borrowers transition to homeownership after successfully making their contract-for-deed payments. The CRF servicing program lets borrowers set their own payment dates and creates a dedicated account for their mortgages so they don’t have to worry about making their payments on time.

CRF typically works for cities and non-profit housing organizations that don’t have large servicing portfolios, and therefore not enough volume to justify a staff or sophisticated set of servicing tools. Banks that offer servicing don’t usually want to deal with these borrowers, who often require more than the standard cookie-cutter approach.

As we’ve seen, this cookie-cutter approach has contributed to the foreclosure crisis, which is rampant all across our country. So we’d rather intervene, offer personalized attention and find solutions that can help people like Pettiford find – and keep – a place to call home.

See Rasheda talk about the importance of a stable, permanent home for her daughters here: http://wcco.com/video/?id=72528@wcco.dayport.com

CRF Puts the Icing on Café Valley Bakery’s Bundt Cakes

2010-07-07T15:59:00.002-05:00

CRF Puts the Icing on Café Valley Bakery’s Bundt Cakes

By Frank Altman

Rich, indulgent bundt cakes – I would have a hard time choosing between lemon, pumpkin cream cheese, chocolate, dipped strawberry and lemonade strawberry.

Fortunately for grocers, restaurants and convenience stores from coast to coast, they won’t have to choose – because CRF has just helped finance Café Valley Bakery’s new, 285,950 square-foot facility that will modernize and consolidate the company’s operations under one roof.

The financing provided by CRF and U.S. Bank will help boost revenues and provide good jobs for people in the Phoenix area. When the project is completed in November, they will have more space for production, new equipment and expanded warehouse and cold storage capabilities.

Built from the ground up, Café Valley’s new facility is expected to create 125 new full-time factory jobs, along with 121 full-time construction jobs between now and November. It will be an attractive commercial development in a blighted neighborhood, where nearly 16 percent of the residents live below the poverty line and the median family income is slightly more than half that of neighboring communities.

It’s the perfect example of how CRF helps create win-win situations for businesses and their communities. We did it utilizing the New Market Tax Program which is designed specifically to help established businesses in low-income communities keep their operations local, by financing real estate acquisitions, equipment purchases or operating expenses.

In this case, it’s more than a simple business expansion – Café Valley’s new facility will have a lasting impact on the people living in southwest Phoenix.

Of course, they’re still left with the delicious dilemma of which bundt cake to choose. . .

2010-06-29T09:44:00.004-05:00

CRF Says "Yes!" When Others Say "No" to Non-Profits

By Frank Altman

The current recession has caught many non-profit organizations between a rock and a hard place: need for their services is rising, while their reserves, funding and financing are drying up.

A 2009 survey found that 75 percent of these mission-driven organizations expect an increase in demand for their services. At the same time, 62 expect a decrease in foundation revenue while 43 percent expect cuts in government revenue. Only 12 percent expect to operate above break-even.

Without financing in both good and especially during bad times, these community-centric organizations simply can't keep their doors open and continue serving their constituents.

Non-profits face one additional hurdle. They can’t get financing from the Small Business Administration because the SBA only finances for-profit companies. CRF has provided funding for various nonprofits and community facilities since our inception.

For example, we helped out when Plymouth Christian Youth Center (PCYC) needed a loan, but was turned down by their bank and couldn’t qualify for a SBA loan.

A non-profit organization dedicated to enriching the skills, prospects, and spirit of N. Minneapolis area youth and adults, PCYC has been a cornerstone of safety and support in a community with a 37 percent poverty rate and an unemployment rate that’s nearly three times higher than the national average.

Working together with the Twin Cities Community Capital Fund, CRF provided a $1.5 million loan that gave PCYC the short-term working capital it needed to continue serving its community. In short, this financing helped PCYC to “be there” for more than 6,000 young people who are learning, growing and overcoming significant barriers in life, thanks to PCYC’s caring staff and volunteers.

*Survey included 1,100 non-profits, conducted by the Nonprofit Finance Fund

Lending to the Max: Why Small Businesses Need Flexible Financing Options

2010-06-22T09:17:00.001-05:00

Lending to the Max: Why Small Businesses Need Flexible Financing Options

By Frank Altman

In this challenging economic environment, when small business owners are ready to move to a whole new level, they need adequate financing tailored to their needs.

They need “lending to the max” – CRF’s kind of lending. CRF fills the gap where banks leave off and provides capital that’s otherwise not available – at a level that can make a significant difference to a small business.

It can mean the difference between leasing and buying a building and making needed renovations. Between “making do” with old, inefficient processes, and buying new, state-of-the-art equipment. Between just staying afloat and breaking away from the pack to become the market leader.

Take CRF’s clients, Jose and Noemi Payan, for example. The classic example of the American dream, the Payans first worked in low-wage restaurant jobs after immigrating to Minneapolis from Mexico. At one point, they saw the need for fresh corn tortillas in a city whose Latino population was growing rapidly and thus began their business, Tortilleria La Perla.

When the Payans’ thriving tortilla operation needed new space and equipment capable of producing several hundred tortillas an hour, they didn’t qualify for traditional financing. And the cost – about $400,000 – was way above a typical microloan. Rather, they needed adequate capital to enable them to grow their business to the level it’s at today.

So CRF and its lending partner, the City of Minneapolis Department of Community Planning and Economic Development, lent the Payans what they needed to expand.

Now, the Payans have three locations and a fleet of delivery trucks. They have about 50 employees, mostly from the local Hispanic community. And they sell more tortillas than anyone else in the city of Minneapolis.

CRF and its lending partners have repeated this small business success story in hundreds of communities across the USA. Watch this site for more stories documenting compelling community impacts.

CRF Receives $500,000 Check from Sam's Club

2010-06-18T09:07:00.001-05:00

CRF receives $500,000 grant from Sam’s Club

CRF received a $500,000 check from Sam’s Club last week. One of four contenders based on the number of votes by Sam’s Club members, we were delighted to take second place. Thanks again to everyone who supported us during this campaign!

VIDEO

We will use this grant to finance 150 small businesses and create and retain about 4,500 jobs across the country. In this economy, every job we add can help put this country back on the right track. We will work with local lending organizations to identify small businesses primarily in low-income and rural communities that can’t access traditional bank funding.

This campaign gave us a chance to reach out beyond our funding community to members of the general public to explain our mission here at CRF. Over the last several years, we have helped finance businesses in more than 700 communities around the country, businesses that are the lifeblood of job creation.

During this great recession, we have been working job by job, community by community, business by business, to put people back to work. With this grant from Sam’s Club, we can do much more than we could have done on our own.

Stay tuned to this blog for examples of entrepreneurs and small business owners that we’ve helped finance…

The Snowball Effect

2010-06-15T13:46:00.001-05:00

The Snowball Effect
Fighting the Recession One Business, One Block at a Time

By Frank Altman

Lake Street, Minneapolis, the early 90’s. Crumbling buildings owned by absentee landlords. A hotbed of crime, prostitution and drugs. The low point was in 1992 when two gang members shot and killed a police officer during his dinner break at Pizza Shack.

But starting with one business, one block at a time, this neighborhood has undergone a revitalization that has brought hundreds of jobs to the area. Wikipedia’s entry: “East Lake Street continues to undergo massive refitting to help reduce crime, boost property values, and attract more shoppers. An example of renewed interest in the area is the refurbishment of the Midtown Exchange building…the largest building in Minneapolis in terms of leasable space.”

The Midtown Exchange commons, which got off the ground in part because of $10 million in tax credits provided by CRF , is on the site of an old Sears building that lay vacant for 10 years. Allina Health Systems moved its corporate headquarters from the suburbs into this building, bringing hundreds of well-paying jobs. The building also features hundreds of mixed-income housing units, a new Sheraton hotel and the Midtown Global Market, which houses many CRF-funded restaurants and specialty grocers.

One example of how we can all make a difference – one entrepreneur at a time – is in the story of Primitivo Morales.

Morales wanted to open a grocery store, deli and tortilla factory in the same crumbling building on Lake Street where Pizza Shack was. Due to unreported code violations and unreliable contractors, the original rehab estimate of $60,000 escalated to $200,000. Conventional lenders were unwilling to finance all of the escalating cost.

So CRF and the City of Minneapolis teamed up to give Morales two loans that would finance approximately half his construction costs. He completed the renovations, creating a restaurant on the street level and an apartment for his family on the second floor.

La Poblanita was an immediate success, with sales exceeding projections by a wide margin. Morales now employs 30 members of the local Latino community and has expanded into the adjacent building.

The loan CRF gave to Morales to start his business is one of about 90 loans we’ve made to other small businesses up and down Lake Street and in the heart of South Minneapolis. Business by business, block by block, Lake Street and the surrounding areas are turning around.

Where banks were unwilling to tread, CRF partnered with other community leaders who, instead of focusing on the neighborhood’s deficits, capitalized on their assets, creating jobs, opportunity and a better life for its residents.

Baldinger Bakery

2010-04-30T12:32:00.000-05:00

Breaking News: Baldinger Bakery Breaks Ground on New Facility

CRF Funding Keeps Buns and Recovery Rolling

This morning, CRF USA staff joined civic leaders and the owners of Baldinger Bakery, a 122-year old St. Paul, Minnesota landmark, in a ground-breaking ceremony to celebrate the company’s new state-of-the-art commercial baking facility.

>> Watch Video

The bakery had outgrown its original, 60,000 square-foot facility years ago, and seriously considered a move to the suburbs. With an acute need to expand production and stay competitive, Baldinger decided to purchase a nine-acre site and build a new factory from the ground up.

CRF USA partnered with the St. Paul Port Authority to provide the business financing needed for the new construction. The project will create over 50,000 hours of construction-related jobs, and the bakery employs over 100 full-time workers. Baldinger Bakery has supplied McDonald’s restaurants for over 50 years.

Now under construction, the new facility includes new equipment and many energy enhancements.

Baldinger Bakery has made buns, bread and other baked goods in St. Paul since 1888, employing thousands of Minnesotans. Today, many second- and even third-generation workers are still baking products for many of the world’s premier food companies.

Do you like this story? Help CRF USA secure a $1 million operating grant from Sam’s Club to fund 300 more deserving businesses. Tweet this message on April 30:

Tell @SamsClub: CRF_USA's financing of Baldinger Bakery keeps the buns & recovery rolling in St. Paul MN #sams4CRFUSA http://bit.ly/d02SaA

CRF USA financing secures future for family-owned restaurant where convention lending sources fail

2010-04-28T09:15:00.000-05:00

CRF USA financing secures future for family-owned restaurant where convention lending sources fail

Neighborhood eatery, founded in 1984, remains key gathering spot

With all the negative news about the economy, it’s great to be able to share a few good stories and to show the impact non-conventional financing can have in a community. Small businesses are the lifeblood of job growth and neighborhood vitality – yet too often they struggle to obtain the capital needed to hire and expand. That’s where community development lenders like CRF USA can make a difference.

This spring, we helped Tooties On Lowry, a family-owned restaurant in Minneapolis, Minn. Tooties opened in 1984 and is an important community gathering place in its tight-knit north side neighborhood.

Unfortunately, recent events like access-limiting street repairs forced owners Nick and Lili Johnson to leverage their personal finances to keep the business afloat. The pair struggled to find credit options through mainstream channels.

“We didn’t think getting a loan was a viable option, given the lack of equity in the business and the declining state of the neighborhood,” Nick Johnson said.

Watch a video of Tootie’s owners Nick and Lili Johnson

Fortunately, with a small business loan from CRF USA, the City of Minneapolis and the Metropolitan Consortium of Community Developers, the Johnsons were able to purchase their building and free up much-needed cash to invest in the business.

“We are so grateful to CRF USA and the City of Minneapolis for helping us,” said Lili Johnson. “As one of the few full-service restaurants in North Minneapolis, we are thrilled to have new opportunities for growth and success in our community.”

Visit Tooties on Lowry at 2706 Lowry Avenue, Minneapolis, Minn.

HELP CRF USA MOVE FROM SECOND TO FIRST PLACE AND WIN $1 MILLION!

2010-04-23T14:27:00.007-05:00

HELP CRF USA MOVE FROM SECOND TO FIRST PLACE AND WIN $1 MILLION!

Community Reinvestment Fund, USA (CRF USA) is a finalist in the Sam’s Club Giving Made Simple campaign! We are very excited about the possibility of receiving a $1 million operating grant to help grow small businesses across the U.S. and create American jobs. We are currently in second place, and need your support to win!

If you’re a Sam’s Club Member, please vote every day through May 2 for CRF USA.

If you’re not a Sam’s Club Member, please tell your friends, family, neighbors and colleagues who are Sam's Club Members to vote for CRF USA every day through May 2nd at samsclub.com/giving

Help CRF USA win this grant by relentlessly demonstrating your support through May 2. Together we can put Americans back to work by financing small business growth!

WHAT CRF USA CAN DO WITH $1 MILLION
- Help create or retain 9,000 U.S. jobs
- Drive an additional $180 million in financing to small businesses
- Strengthen hundreds of small businesses

Eugene Swanzey joins CRF's Campaign for Economic Opportunity

2010-04-20T14:24:00.002-05:00

Eugene Swanzey joins CRF’s Campaign for Economic Opportunity

CRF is pleased to welcome Eugene Swanzey, Chairman of The Board of The McLean Group, as the newest member of our “Campaign for Economic Opportunity” leadership committee.

Mr. Swanzey brings to CRF thirty years of private- and public-sector financial experience. Headquartered in the Washington, D.C. area, the McLean Group is a middle-market investment bank with 29 offices and serves U.S. and international clients.

CRF launched the Campaign for Economic Opportunity to raise funds to help people to connect to the American Dream: one person, one business, one community at a time to rebuild their neighborhoods, and creating jobs by making loans to small businesses opportunity to all.

Mr. Swanzey joins fellow leadership committee members Andrew S. Duff, Chairman and CEO, Piper Jaffray & Co., Vance Opperman, President and CEO, Key Investment, Inc., and J.C. Watts, Jr., Chairman, Watts Companies.

Help CRF USA Win $1 Million to Put Americans Back to Work

2010-04-13T10:26:00.000-05:00

Help CRF USA Win $1 Million to Put Americans Back to Work

VOTE EVERY DAY THROUGH MAY 2!

CRF USA has been chosen as a finalist in the Sam’s Club Giving Made Simple campaign! We’re honored – but even more, we’re excited at the possibility of receiving a $1 million operating grant to help grow small businesses across the U.S. and create American jobs.

With your support we can win this grant!

If you’re a Sam’s Club Member, use your Sam's Club Membership Number to vote every day through May 2. If you’re not a Sam’s Club Member, you can help us in one of the following ways:

Spread the Word – Tell your friends, family, neighbors and colleagues who are Sam’s Club Members to vote for CRF USA every day through May 2

TWEET for CRF USA - Follow, tweet and retweet about CRF’s nationwide impact on Twitter. Make sure you tweet on April 16 and April 30 using @SAMSCLUB and #SAMS4CRFUSA to help us double the votes we receive on those days!

FACEBOOK for CRF USA: Become a Fan of CRF USA on Facebook, and introduce us to your Facebook Friends.

Advocate for CRF USA – Download the complete CRF USA Supporter Kit for even more ways to show your support for job growth, small businesses, vibrant communities and the American Dream.

Help us win this grant by relentlessly demonstrating your support through May 2. Together we can put Americans back to work by financing small business growth!

Successful Event

2010-04-12T14:24:00.000-05:00

Giving Made Simple Kick-off Event

Thanks to everyone who showed their support for CRF USA at Saturday's Sam's Club - Giving Made Simple kick-off event in St. Louis Park, MN. Special thanks to our borrowers, La Perla Tortilleria, Welna Ace Hardware and Tooties On Lowry for sharing their CRF USA stories with Sam's Club Members. Check out the photos on the CRF USA Facebook page.

Join us this Saturday, April 10 to rally for jobs and small businesses

2010-04-09T10:14:00.008-05:00

Calling all Minnesotans!

If you’re a Sam’s Club Member, join us this Saturday, April 10 to rally for jobs and small businesses!

Saturday, April 10
10 a.m.-1 p.m.

Sam’s Club
3745 Louisiana Avenue
St. Louis Park, Minn.

Enjoy Music from the City Songs choir, a children’s choir supported by Plymouth Christian Youth Center, a nonprofit human services organization that utilized CRF USA financing.

Learn about our community impact directly from small business owners who’ve utilized CRF USA financing:

Tootie’s on Lowry, Nick and Lili Johnson
Tooties Restaurant is an important community-gathering place and a landmark in its tight-knit north Minneapolis neighborhood. When Tooties’ owners needed a loan to purchase their operating location and improve cash flow, their lack of equity in the business made bank financing a long shot. Thanks to CRF USA and its partners, Tooties was able to weather the recession and is now one of the most successful full-service restaurants in North Minneapolis.

Welna Ace Hardware, Jim Welna
Welna Ace Hardware Store has been a family-owned and operated business for more than 50 years. When the business outgrew the small space it occupied, Mark Welna turned to CRF USA to help purchase a larger building. The new store – twice the size of the old space – allows for a broader inventory to reach a wider customer base.

La Perla Tortilleria, Manuel Payan and Jose Payan Jr.
After starting a retail tortilla distribution business in 1999, Jose and Neomi Payan transformed their endeavor into a thriving wholesale operation. With such rapid growth, the Payans were ready to increase production. However, when the couple did not qualify for traditional financing. CRF USA and its lending partners were able to loan the Payans $300,000 to purchase their operating location and new equipment, plus make improvements to the factory in order to boost production capacity. As a result, the Payans were able to hire 15 new employees, almost all of them from the local Hispanic community.

Meet local dignitaries, entrepreneurs and community partners who support CRF USA’s work to strengthen our communities.

Are You a Fan? Help Us Reach 500

2010-03-30T09:47:00.003-05:00

Are You a Fan? Help Us Reach 500

CRF is now on Facebook, Twitter, and YouTube. It’s easy to link to us, and every new Facebook “fan” and Twitter “follower” helps us increase our visibility in the marketplace, all through the power of social networking.

Please join us and spread the word in your network. We want to reach 500 Facebook Fans by April 10.

Are you a fan of new jobs in the U.S.? Do you support small businesses and opportunity for all? If so, be visible and engage with us online.

Are you a CDFI, CDC or community development lender? Send us your site links and we’ll reciprocate. Many voices united create a strong and united presence for the community development.

Welcome to the CRF Blog!

2010-03-29T09:33:00.002-05:00

Welcome to the CRF Blog!

We’re excited to launch our first online forum, a place for CRF staff and supporters to connect with us on important issues, news, events and ideas from around the community development finance industry.

Whether it’s trends affecting small business and affordable housing, the latest on charter schools, green energy and credit availability, or the ongoing need to create and retain jobs across our nation, we believe the work of building strong and vibrant communities is “everybody’s business.”

Be part of our dialogue! We encourage you to post and comment with your feedback.

Interested in writing a guest blog? Contact us.