This directory provides easy access to information for a sampling of organizations that can provide resources to banks interested in investing in Community Development (CD) Banks or Community Development Financial Institutions (CDFIs). It also provides materials of interest to banks considering converting to a national CD Bank or organizations considering forming a CD Bank. The activities are organized under the following categories:
Venture Capital CDFIs
OCC's Community Development Bank Resources
Guidance
to Prospective Community Development Bank Organizing Groups This OCC memo provides a general discussion of the chartering process for community development national banks, including the licensing and operational issues facing bank organizers. It also outlines the criteria the OCC uses in granting a CD bank charter, explains the assistance OCC provides to organizers of CD banks, and states the factors the OCC considers to be critical to the success of any de novo CD bank. Please see our current list of nationally chartered CD banks .
Guide To Tribal Ownership of a National Bank
This guide was developed to assist federally recognized Indian tribes in exploring entry into the national banking system by establishing or acquiring control of a national bank. The publication provides a high level overview of the process of chartering a national bank and may also be useful to individuals and groups considering the formation of a Community Development Bank.
Community Development
Corporations, Community Development Projects, and Other Public Welfare Investments Regulation (12 CFR Part 24) governs national bank investments designed to promote the public welfare. National banks may make investments in CD banks and CDFIs under the provisions outlined in the regulation.
"Community
Development Financial Institutions and CD Banks
- Natural Partners for Traditional Lenders" - OCC's Summer 2002 Community Developments Newsletter The Summer 2002 edition of the OCC's Community Developments newsletter provides information on innovative and effective practices in the CD Bank and CDFI arenas. Articles by practitioners and experts give the reader an opportunity to see firsthand how CD Banks and CDFIs can reach underserved markets and individuals with financial services.
The Policy Statement on Minority-Owned Banks outlines the OCC's policies and initiatives that facilitate the ability for minority banks to prosper and meet the needs of their communities.
The Minority- and Women-owned National Bank list is an annual compilation of national banks that are owned and controlled by minorities and/or women.
New Markets Tax Credits: Unlocking Investment Potential (February 2007) This edition of Insights examines the primary risks and regulatory considerations associated with New Market Tax Credits (NMTCs) and discusses the ways in which bank investors have structured and managed these credits effectively. Banks have been active participants in the NMTC program because of the ability to generate competitive economic returns, and the opportunities they present for positive CRA consideration.
Reaching Minority Markets: Community Bank Strategies (November 2006) This edition of Insights examines strategies being used by community banks to target specific minority markets in the United States, the impact of these strategies on bringing unbanked consumers into the banking system, and some risks and regulatory considerations associated with each strategy.
Minority-Owned Banks - Making a Difference in Their Communities (Winter 2006-2007) This edition of Insights focuses on minority-owned institutions, the strategies they employ to serve their markets, and how majority-owned institutions can partner with minority-owned banks and receive consideration under the Community Reinvestment Act.
Bank Owned Community Development Corporations Community Developments Fact Sheet
New Markets Tax Credits Community Developments Fact Sheet
Multi-Bank Partnerships for Community Development Financing Community Developments Fact Sheet
Small Business Administration Programs Community Developments Fact Sheet
USDA Rural Housing Finance Programs Community Developments Fact Sheet
CDFI Fund Programs
Bank Enterprise Awards Program - Through the Bank Enterprise Award (BEA) Program, the CDFI Fund supports financial institutions around the country that are dedicated to financing and supporting community and economic development activities. The BEA Program complements the community development activities of insured depository institutions (i.e., banks and thrifts) by providing financial incentives to expand investments in CDFIs and to increase lending, investment, and service activities within economically distressed communities. Providing monetary awards for increasing community development activities leverages the Funds dollars and puts more capital to work in distressed communities throughout the nation.
Community Development Financial Institutions Program - Through the Community Development Financial Institutions (CDFI) Program, the Fund uses federal resources to invest in and build the capacity of CDFIs to serve low-income people and communities lacking adequate access to affordable financial products and services. The Fund provides monetary awards for financial assistance (FA) and technical assistance (TA) through the CDFI Program.
New Markets Tax Credits The New Markets Tax Credit (NMTC) Program permits taxpayers to receive a credit against Federal income taxes for making qualified equity investments in designated Community Development Entities (CDEs). Substantially all of the qualified equity investment must in turn be used by the CDE to provide investments in low-income communities. The credit provided to the investor totals 39% of the cost of the investment and is claimed over a seven-year credit allowance period. In each of the first three years, the investor receives a credit equal to five percent of the total amount paid for the stock or capital interest at the time of purchase. For the final four years, the value of the credit is six percent annually.
Native American Initiatives Program - In September 1994, Congress mandated that the CDFI Fund conduct a study of lending and investment practices on Indian reservations and other lands held in trust by the United States. Specifically, Congress mandated that the study identify barriers to private financing, identify the impact of such barriers on access to capital and to credit for Native peoples, and provide options to address these barriers. Since the November 2001 release of its Native American Lending Study, the CDFI Fund has embarked on a number of initiatives designed to overcome barriers preventing access to credit, capital and financial services in Native American, Alaska Native and Native Hawaiian communities (collectively referred to as "Native Communities"). Through these initiatives, the CDFI Fund provides direct monetary awards and training (through contractors) aimed at increasing the number and capacity of existing or new CDFIs serving Native Communities.
Low Income Credit Unions
National Credit Union Administration (NCUA) is an independent federal agency that supervises and insures over 6,500 federal credit unions and insures more than 4,000 state-chartered credit unions. Over 800 of these entities have been designated as "low-income" credit unions in that they serve primarily low-income members in distressed and financially underserved areas. NCUA manages a Revolving Loan Fund
and provides technical assistance grants to low-income designated credit unions. Low income credit unions can receive capital treatment for secondary capital loans
. NCUA's Credit Union Data webpage allows for a search of all low-income credit unions.
National
Federation of Community Development Credit Unions (NFCDCU) helps community development credit unions (CDCUs) provide affordable loans, secure savings, basic financial education and other vital services to low-income and minority consumers. NFCDCU serves as an intermediary for banks and thrifts interested in making deposits in CDCUs.
www.natfed.org
Financial Intermediaries for CDFIs
Opportunity Finance Network is a national membership organization of CDFIs. It is the leading network of private financial intermediaries identifying and investing in opportunities to benefit low-income and low-wealth people in the U.S. OFN's membership includes community development credit unions, community development venture capital funds, and micro-enterprise lenders.
www.opportunityfinance.net
National Community
Investment Fund (NCIF ) is an independent, nonprofit trust that invests equity and debt in depository CDFIs. NCIF works with entities interested in investing in CDFIs to underwrite and structure their investments and assess the potential financial and development impact. The NCIF Web site outlines criteria for institutions in which it will invest and the types of financial assistance available. NCIF offers training on the BEA Program to its members and investors.
www.ncif.org
Community
Reinvestment Fund (CRF) is a non-profit organization which provides a secondary market for community development loans originated by CDFIs. CRF also provides loan servicing and portfolio management services, as well as lender training and technical assistance to community-based lenders.
www.crfusa.com
Community Development
Bankers Association (CDBA)is a national trade association focused on the specialized needs of CD banks. CDBA promotes growth of the industry though: (1) identification of best practices in the industry the sharing of information about CD banking, and (2) providing training and educational opportunities for lawmakers, regulators, investors, and government agencies about the issues facing the CD banking industry. CDBA may be reached by contacting Jeaninne Jacokes at (202) 289-2636.
Microenterprise CDFIs
Association for
Enterprise Opportunity (AEO) is a member organization which is
dedicated to the promotion of microenterprise in the U.S. AEO provides its members with a forum,
information, and a voice to promote microenterprise for people and communities
with limited access to economic resources. AEO maintains a national listing of
microenterprise organizations on their Web site.
www.microenterpriseworks.org
Federal Microenterprise Resource Guide provides information on: (1) Federal programs and how to access these resources; (2) the work of successful microenterprise development organizations through case studies; and (3) common definitions used by Federal agencies administering microenterprise support programs.
Corporation for Enterprise Development
(CFED) promotes microenterprise finance to expand access to business training, technical assistance and capital in low-income communities. Current CFED work in development finance includes the creation of an information intermediary for the CDFI field as well as consulting and training services to communities and institutions in all sectors. CFED operates the National Fund
for Economic Development which is a certified CDFI that invests in state-based
microenterprise intermediaries. NFED works nationally to help these
intermediaries attract new funding available for microenterprise and track
microenterprise development outcomes in their states.
www.cfed.org
ACCION USA
provides access to credit for low- and moderate-income small businesses owners.
ACCION partners with traditional financial institutions to provide business
loans and other support services in 30 cities and towns in the United States.
The average size loan by ACCION in the United States is about $6,000.
www.accionusa.org
Venture Capital CDFIs
National Venture
Capital Association is a trade
association that represents the venture capital industry. Its membership
consists of venture capital firms and organizations that manage pools of risk
equity capital designated to be invested in young, emerging companies.
www.nvca.org
Community
Development Venture Capital Association (CDVCA) promotes the use
of venture capital to create jobs, entrepreneurial capacity, and wealth. CDVCA
accomplishes these goals through training programs, publications, networking
opportunities, and direct consulting services. CDVCA's website contains a
description of and links to community development venture capital funds
throughout the country.
www.cdvca.org
National
Association of Seed and Venture Funds (NASVF) is an organization
of private, public and nonprofit organizations focused on facilitating
investments in local entrepreneurs. NASVF's website provides links to seed and
venture capital organizations as well as information on upcoming training
sessions and seminars.
www.nasvf.org
