Investments by bank investors today provide 53% or $4,650,000 of the Loan
Fund's total available loan capital for lending. By investing in the Loan Fund,
banks and thrift institutions often are able to extend the reach of their
conventional lending activities into higher risk communities and projects that they might not otherwise be able to support.
By relying on the Loan Fund's professional underwriting staff, and experience in
working in low-income communities, bank investors take advantage of the
Loan Fund's proven ability to source projects, provide technical assistance, and
package reduced risk loans of important social impact.
Types of bank investments in the Loan Fund include equity capital, debt capital and equity equivalent investments from $25,000 to $1,000,000 in size.
Bank investors generally recieve a 2-3% return on their investment over a 7-10 year term.
Bank investors in the Loan Fund represent a wide range of statewide, regional
or national banking institutions. All bank investors receive community
reinvestment credits and can qualify for the bank enterprise award(BEA) program of the Treasury
Department's, Community Development Financial Institutions Fund BEA
Program.
Whether a financial institution is a traditional bank or a thrift,
participation in the Loan Fund's investment pool regularly satisfies community
reinvestment criteria used by both the Federal Home Loan Bank and Office of
Thrift Supervision.
In addition, the Loan Fund works with its bank and thrift investors whenever possible to
cooperate in participation loans that address community development needs in their
market areas, thereby adding to the social return on their investments.
Economic decisions have human consequences and moral content; they help or hurt people, strengthen or weaken family life, advance or diminish the quality of justice in our land.
U.S. Catholic Conference of Bishops, November 1986
, "Economic Justice for All: A Pastoral Letter".
