The CDFI Coalition released its annual data report with the support of nine CBN members! Take a moment to see how much lending our local CDFIs are doing in St. Louis' disinvestment communities which is $160M.
Rise's Director of Community Planning and Implementation Receives Award
Brian Hurd, the Director of Community Planning and Implementation for Rise Community Development in St. Louis, will receive a Design Achievement Award from the Iowa State University College of Design at Iowa State’s Homecoming celebration in October. Congratulations, Brian!
Rise Launches CDFI to Help Minority & Women-Owned Contractors
Rise’s Community Development Financial Institution (CDFI) is launching at a time when the demand for flexible, responsive capital in the St. Louis community development sector continues to grow. Rise CDFI supports Rise’s existing work in neighborhoods where appraisal gaps constrain traditional lenders, and a lack of coordinated community-driven plans and investment strategies have led to inefficient and insufficient development while perpetuating the racial wealth gap.
Colleen Hafner, Rise’s CDFI Director
Rise’s Experience With Lending
This is not Rise’s first experience with lending- since 1993, Rise has operated its Predevelopment Loan Fund. Most nonprofit community-based organizations do not have the ability to pay the upfront costs necessary to get a development project to the point where construction loan funding becomes available. To address this need, Rise offers predevelopment loans to nonprofit neighborhood organizations, enabling them to start planning and building toward a vision of improved neighborhood vitality.
Operation of Rise CDFI
Colleen Hafner, formerly a Project Manager at Rise, has stepped into a new role as Rise’s CDFI Director. She has over 14 years of experience in the housing and community development field. Colleen is passionate about increasing access to capital as a way to build a more equitable St. Louis community for all.
Rise CDFI is initially offering two funds providing three loan products as well as an array of developmental services to our borrowers. These two funds are the Minority Contractor Loan Fund and the Small Developer Loan Fund.
Minority Contractor Loan Fund
The Minority Contractor Loan offers term loans and lines of credit tied to specific construction contracts. Currently, Rise originates these loans at 6% interest with origination fees of 100 basis points. In general, no other fees (application fees, etc.) are charged. We will make loans as small as $20,000, and tailor the amount and term length to the specific contract requirements, timelines, and cash flow needs of the borrower.
Rise CDFI pairs all loans with development services to enhance the borrower’s short-term and long-term business goals and financial success. Rise has a significant history of providing capacity-building technical assistance to small nonprofit businesses. These services include staff and board development, financial management, strategic planning, and much more. Building off this framework, Rise provides and coordinates services to minority- and women-owned contractor borrowers, meeting each firm where they are and aligning capital with the tools to grow.
Small Developer Loan Fund
The Small Developer Loan Fund builds upon Rise’s long-time experience lending capital for predevelopment expenses by adding construction lending for neighborhood-based residential and mixed-use development. They see this product as meeting a need for affordable loans that support the rehab of “naturally occurring affordable housing.” That is unsubsidized residential development in neighborhoods where acquisition/rehab (particularly for the re-use of vacant property) can be done at a range of affordability on a purely market basis. They can also lend on developments using subsidies such as CDBG, HOME, and Affordable Housing Trust Funds.
Rise’s unique development expertise means thoughtful and realistic loan underwriting and providing borrowers with the capacity-building tools they desire to grow their business and increase their impact in a given community. The ultimate goal is to build wealth for, by, and within a neighborhood – leaving each block in a stronger place than before.
Rise CDFI is a member of the St. Louis CDFI Coalition, a partnership among eight CDFIs that offer an array of capital, development, and consulting services and share a common mission to empower a comprehensively healthy St. Louis community through support for nonprofits, small businesses, and communities facing disinvestment.
This story was adapted and reposted from the Rise website.
Moving Money to Mission Through Impact Investing Partnerships with CDFIs
This story was originally published on the Philanthropy Missouri blog as a guest post by Paula Langley, Senior Project Manager, IFF & Gary Newcomer, Director of Operations, Community Builders Network (on behalf of the St. Louis CDFI Coalition)
Members of the St. Louis Coalition at the St. Louis CDFI Forum hosted by the Federal Reserve
The St. Louis CDFI Coalition is a partnership among eight Community Development Financial Institutions (CDFIs) that offer an array of capital, development, and consulting services and share a common mission to empower a comprehensively healthy St. Louis community through support for nonprofits, small businesses, and communities facing disinvestment.
CDFIs, which are designated by the U.S. Department of the Treasury, provide financial services to borrowers where commercial banks and traditional lenders leave gaps. Some specialize in midsize to large loans to community-serving agencies; others provide small, individual loans and other credit and financial services, while others focus on small business and real estate development lending.
The eight CDFIs in the St. Louis Coalition share a common mission of access to safe and affordable financial products and services, and offer mission-driven loans and other resources that are more flexible and accessible than traditional financing. Loans and resources are deployed across the region into some of St. Louis’ most economically distressed communities, and members frequently re-assess needs and look for innovative ways to fill financial gaps.
The St. Louis CDFI Coalition in Action
The St. Louis CDFI Coalition is a diverse collection of community development organizations ranging from depositories to loan funds and has supported a range of work including the highlighted projects below:
Justine PETERSEN was profiled by the Wall Street Journal for their work supporting black-owned businesses through the Paycheck Protection Program (PPP).
St. Louis Community Credit Union created gateways to banking careers.
Gateway CDFI financed affordable homes in North St. Louis neighborhoods.
IFF supported the early childhood education (ECE) community through Urban Sprouts Development Center.
Alltru Credit Union fought for the financial health of the community.
The International Institute Community Development Corporation provided business development support to refugees that launched a local soap business.
Rise CDFI is rolling out its minority contractor and small developer loan funds in 2021.
Alliance Credit Union is a Low-Income Designated CDFI with strong consumer, mortgage, and commercial lending portfolios.
To read more stories about CDFIs, look to the St. Louis CDFI Coalition blog. Elsewhere in Missouri, there are CDFIs Coalitions such as the Kansas City CDFI Coalition, including statewide CDFIs Gateway, IFF, and Justine PETERSEN. For a full list of CDFIs, see Opportunity Finance Network’s CDFI Locator.
Invest in CDFIs
Impact investing in CDFIs is an additional way for investors and funders who are looking to amplify their social impact while also gaining financial returns. IFF’s CEO, Joe Neri, recently shared the benefit of partnering with CDFIs to achieve a social mission and stated, “those investments can also strengthen the entire community finance ecosystem and, in turn, create greater impact in even more communities”. Impact investors and CDFIs can partner together to amplify shared missions of social impact that ultimately strengthen the entire community finance ecosystem.
If you or someone you know is interested in learning more about CDFIs, impact investing, and how to invest in your local St. Louis CDFI community, please visit our website to learn more about each CDFI’s mission and how to invest. For more information on how to support the St. Louis CDFI Coalition, reach out to Gary Newcomer at gary@communitybuildersstl.org.
To view the original blog post, click here.
Justine PETERSEN Profiled by Wall Street Journal for PPP Lending
Many small businesses across the country are struggling to make ends meet in the wake of COVID-19, and the St. Louis region is no exception.
To meet the need, Justine PETERSEN stepped up as a Paycheck Protection Program (PPP) lender to support small businesses in the St. Louis area who might not have connections with traditional banks. The Wall Street Journal recently took notice of how Justine PETERSEN is doubling down on their commitment to support small businesses in 2021.
Rebecca Mawuenyega of Dellwood Pharmacy was one of those businesses in the St. Louis area struggling to recover from the COVID-19 pandemic. Her business benefitted from PPP lending at Justine PETERSEN after losing more than 40% of her revenue. Her business was able to receive $16,000 through the program at a critical time and is pursuing PPP lending for a second time due to recent increases in local COVID cases.
“Because the COVID numbers are going up, it’s happening again.”
-Rebecca Mawuenyega
The PPP loan made possible through Justine Petersen helped Dellwood Pharmacy to keep her business open and serving the local community.
And her business isn’t the only one benefiting from the program.
“There seems to be a healthy demand” said Galen Gondolfi, Chief Communications Officer at Justine PETERSEN. In the first week, they received about 150 inquiries from small businesses asking about the PPP program.
Rebecca Mawuenyega of Dellwood Pharmacy
Moreover, Justine PETERSEN has been tracking where their PPP lending is going. 75% of the $14.8 million in their PPP lending went to BIPOC-owned small businesses, which were much less likely to access PPP lending during the first round of the federal stimulus program.
Justine Petersen’s mission is to connect institutional resources with the needs of low- to moderate-income individuals and families, helping them to build assets and create enduring change - not just for each individual or family that they assist, but the community as a whole.
Justine PETERSEN is a member of the St. Louis CDFI Coalition, a partnership among eight CDFIs that offer an array of capital, development, and consulting services and share a common mission to empower a comprehensively healthy St. Louis community through support for nonprofits, small businesses, and communities facing disinvestment.
All photos from this story taken by Rebecca Mawuenyega. Read the full story from the Wall Street Journal here.
St. Louis Community Credit Union Creates Gateways to Banking Careers
St. Louis Community Credit Union is more than a credit union. They’re a leader and voice for social justice in the financial services world and across St. Louis neighborhoods. They exist to increase the standard of living and better the lifestyle of their members, staff, and the communities they serve.
That’s why they decided to co-found the Gateway to a Banking Career program in 2018 with Carrollton Bank and Enterprise Bank & Trust to create more equitable access to careers in the financial sector.
The Gateway to a Banking Career program has two goals:
Offer individuals a pathway to career options within the financial services industry
Build a more inclusive and diverse workforce within banks and credit unions
Since launching, four cohorts and a total of 46 people have successfully completed the program. Of those who completed the program, 42 self-identify as African American (35), Latino (2), or immigrants (5) to the United States.
Participants learn how to pursue a successful career in the financial services industry. Training covers essential elements like customer service best practices, banking products and services, personal financial wellness, resume writing, business etiquette, and interview skills.
“Not only did this program get me ready for the Credit Union professionally, but also gave me a boost of confidence with my personal goals. I was made aware that there’s no limit to my talent, and all I had to do was show up and show out!
Tammerah J.
2018 Gateway to a Banking Career Participant”
Everyone who successfully completes their two-week training receives a stipend, guaranteed job interview with at least one of the participating financial institutions, and ongoing encouragement post-program. To date,19 participants secured employment at a financial institution, while numerous others were able to secure employment opportunities at other employers.
Banks and credit unions do not traditionally partner to produce joint programming, much less develop a job training program. However, St. Louis Community Credit Union, Carrollton Bank, and Enterprise Bank & Trust shared a common commitment to building a diverse and inclusive financial workforce and have long-standing relationships.
“Not only did this program get me ready for the Credit Union professionally, but also gave me a boost of confidence with my personal goals. I was made aware that there’s no limit to my talent, and all I had to do was show up and show out!” said Tammerah J., participant in the 2018 Gateway to a Banking Career program.
St. Louis Community Credit Union partners with Employment Connection, Connection to Success, and the International Institute, among others, in order to connect area residents to the program and opportunities in banking careers.
When the COVID-19 pandemic hit St. Louis, the Gateway to a Banking Career program transitioned to a virtual format!
St. Louis Community Credit Union is a certified community development financial institution (CDFI). Through caring service and education, St. Louis Community Credit Union provides the residents of the St. Louis region with safe, affordable and accessible financial services and products. For more than 75 years and counting, they have been serving residents of St. Louis City and those of Franklin, St. Louis and St. Charles counties in Missouri; as well as St. Clair, Madison, Monroe and Jersey counties in Illinois.
St. Louis Community Credit Union is a Low-Income Designated credit union and is one of the largest Minority Depository Institutions in the United States (per the National Credit Union Administration).
St. Louis Community Credit Union is a member of the St. Louis CDFI Coalition, a partnership among eight CDFIs that offer an array of capital, development, and consulting services and share a common mission to empower a comprehensively healthy St. Louis community through support for nonprofits, small businesses, and communities facing disinvestment.
Gateway CDFI Finances Affordable Homes in Historic North St. Louis Neighborhoods
Tabernacle Community Development Corporation was formed in 2014 when The Tabernacle, a church on Ashland Avenue in the JeffVanderLou neighborhood of North St. Louis City, identified a vision to revitalize two neighborhoods in its footprint: JeffVanderLou and The Ville. Andre Alexander stepped up to lead Tabernacle CDC in this journey.
Tabernacle CDC created the Affordable Rental Program to accomplish its vision and create safe homes for area residents. The organization purchases properties and renovates them so that they can become new, affordable homes for area families. Moreover, rent is set based on ability to pay so that families can build wealth and achieve financial stability. There is no shortage of neighborhood residents hoping to live in these renovated homes and Tabernacle CDC maintains a long list of interested tenants.
Tabernacle CDC is also passionate about saving existing buildings and honoring the neighborhood’s architectural integrity. This includes preserving elements dating back to the 1920s like pocket doors, crown molding, and fireplace mantels in the homes it renovates. This attention to detail and dedication to saving existing buildings contributes the success and revitalization of the entire neighborhood.
However, financing these projects is not easy. This is made even more difficult because of appraisal gaps, deflated home values, and disinvestment within the broader community caused by racist housing policies like redlining.
This is where Gateway CDFI stepped in to help.
Gateway CDFI helps fill the need for non-traditional loan products and development consulting services to under-served areas. This made them the perfect match for Tabernacle CDC and their affordable housing initiative in the JeffVanderLou neighborhood.
Jaycee Greene, Community Development Lender at Gateway CDFI, met Andre Alexander in 2018 at an event called Investment Connection hosted by the Federal Reserve Bank of St. Louis. That’s where he learned about Tabernacle CDC’s vision and proposed housing initiatives.
“Given their attributes, the financial wherewithal of the CDC, and the strength of Andre’s leadership, Gateway CDFI was able to provide a significant loan commitment within three months of the Investment Connection event and closed on a loan within six months,” said Jaycee.
In addition to an investment of $400,000, Gateway CDFI was also able to connect Andre and Tabernacle CDC to other nonprofits and funders. Already, they have renovated three multifamily buildings as a result of their relationship with Gateway CDFI and now have their eye on additional projects nearby, including the creation of a community resource center.
Gateway CDFI is a certified community development financial institution (CDFI). It was established in 2009 to provide nontraditional loan products and development consulting services to underserved areas, including communities in Missouri, Southern Illinois, and Eastern Kansas.
Gateway CDFI is a member of the St. Louis CDFI Coalition, a partnership among eight CDFIs that offer an array of capital, development, and consulting services and share a common mission to empower a comprehensively healthy St. Louis community through support for nonprofits, small businesses, and communities facing disinvestment.
This story was adapted and all photos were reproduced with permission of the Federal Reserve Bank of St. Louis, Open Vault blog, Oct. 23, 2019: Rebuilding Homes and Restoring Hope in North St. Louis” Federal Reserve Bank of St. Louis’ Open Vault Blog.
IFF Nurtures Urban Sprouts Child Development Center
Urban Sprouts is one of the only mixed-income, Reggio-inspired Early Childhood Education (ECE) centers in Missouri.
If you visit the Urban Sprouts Development Center website, you’ll find a mission statement that reads, “We envision a community where the ideas of children matter, a society where education is a right, and a world [where] the image of each child is valued.”
From its bright and spacious new center in University City, it provides high-quality programs to 124 children, 57% of whose care is state or federally subsidized. Urban Sprouts is a favorite ECE choice for a diverse set of families in St. Louis. While Urban Sprouts is a high-quality program that families love (they have a waiting list of over 200 children!), facilities used to be a major issue.
Walking through the natural-light-filled, colorful, engaging center, you probably wouldn’t guess that the program was once being operated in two relatively old buildings with significant maintenance issues. Every time it rained or a pipe burst, the building flooded and Ellicia (Director of Urban Sprouts) was met with a shrug from her landlords, telling her to cover the cost herself. During her first five years of operating Urban Sprouts, she spent more than $100,000 repairing buildings that she didn’t even own.
The expansion of Urban Sprouts into its new facility, however, didn’t come without a few challenges. During the planning and development of the center, Ellicia faced a number of roadblocks related to its financing, construction, licensing, and opening.
That’s where IFF comes into the story. Thanks to IFF’s technical expertise and special financial tools, Ellicia’s vision could come to life.
IFF managed and financed the project with nearly $2 million of funds from the New Markets Tax Credit program. Other sources of financing included a separate IFF loan, support from Youth-In-Need, and an equity contribution from Urban Sprouts itself.
“IFF is so proud to have partnered with Urban Sprouts to develop its new high-quality early education center in University City.” said Stephen Westbrooks, Executive Director of IFF’s St. Louis region. “Partnering with organizations like Urban Sprouts to plan, finance, and build high quality facilities is core to the work that IFF does in the communities we serve.”
As a CDFI, IFF is a mission-driven lender, real estate consultant, and developer that helps communities thrive by creating opportunities for low-income communities and people with disabilities. Key to our success has been a deep sense of purpose, a broad perspective, and a relentless focus on achieving positive results. Social return can coincide with financial return.
IFF is the largest nonprofit CDFI in the Midwest and operates out of their Chicago headquarters with six regional offices, including St. Louis.
IFF is a member of the St. Louis CDFI Coalition, a partnership among eight CDFIs that offer an array of capital, development, and consulting services and share a common mission to empower a comprehensively healthy St. Louis community through support for nonprofits, small businesses, and communities facing disinvestment.
(excepts for this post were taken from The First Step Toward Equity: Building a Better Future Through Early Childhood Education in St. Louis)
Alltru Credit Union Fights for the Financial Health of the Community
Jawonna became a member of 1st Financial Federal Credit Union (now Alltru Credit Union) in 2016 when she financed her car with the credit union. Everything was going as planned, when suddenly her car was in need of significant repairs and not drivable.
Unfortunately she and her husband couldn’t afford the repairs and soon after, Jawonna was let go from her job for not having reliable transportation. With no job, she fell behind on her payments to the credit union and felt hopeless.
Fortunately, the Alltru Account Resolution department was in contact with Jawonna and listened to her story. They explained how we could work together to find a solution to help her family find stability. Thanks to innovative lending options at the credit union, Jawonna and her husband were able to get her vehicle repaired which helped Jawonna to get a new job. Soon they were able to gain extra income and get their car loan payment current. Jawonna said if it wasn’t for the patience and guidance of her credit union, she doesn’t know where she would be right now. “It was nice to have someone in our corner fighting for us.”
“You automatically think that when the bank is calling, they just want their money and they don’t care about any of your excuses. Little did I know, my credit union was willing to work with me.”
Alltru is a $250M Community Development Financial Institution (CDFI) credit union in the St. Louis region.
As a CDFI, Alltru has forged many important and innovative relationships with local community and government partners so they can support clients who live or work in low income geographic areas.
These program partnerships allow Alltru to open low cost and free deposit products for their those who may not have otherwise had access to safe banking products.
Alltru operates branches in Wentzville and St. Charles in St. Charles County, Hazelwood in St. Louis County, and on Washington Ave in the heart of the City of St. Louis. They also have two full-time Financial Empowerment Specialists housed in local non profit and CDFI agencies in St. Louis.
Alltru is a member of the St. Louis CDFI Coalition, a partnership among eight CDFIs that offer an array of capital, development, and consulting services and share a common mission to empower a comprehensively healthy St. Louis community through support for nonprofits, small businesses, and communities facing disinvestment.
International Institute Supports Refugee in Building Aleppo Soaps in St. Louis
Haitham Kadou came to United states from Syria as a refugee in 2016.
In Syria, he learned the process of soap making from his grandparents with unique recipes passed down from generation to generation. He also had experience running his own soap factory producing high quality soaps made with all-natural and chemical-free ingredients.
When he arrived in St. Louis, he decided to open the same business with a new name: Aleppo Natural Soap. The International Institute Community Development Corporation (IICDC) was there to help!
Like many immigrants and refugees wanting to start a business in St. Louis, Haitham faced two major barriers: 1) access to capital & 2) knowledge of local resources and opportunities. Many of the skills and experiences of foreign-born entrepreneurs do not easily transfer to the US. IICDC supported Haitham as he launched his business on Facebook and Etsy and connected him to opportunities at local bazaars and festivals. His business is one of 536 supported by their organization.
IICDC is Community Development Financial Institution (CDFI) in the St. Louis region that provides loans and business development services to immigrants who do not qualify for business credit at traditional banks
They help clients become successful borrowers and savers, evaluating and providing them with an appropriate level of credit counseling, financial literacy and training to compliment the choice of financial product. Many are still struggling to develop and perfect their English and business communication skills. As a result, they are less likely to take advantage of the many resources that our region has for low-income entrepreneurs. With support from IICDC they are able to take the first step towards becoming business bankable.
IICDC offers a variety of services to clients to promote the economic development of immigrants and refugees in the St. Louis region, including their microenterprise loans ranging from $500-45,000. According to the Regional Chamber and Growth Association, generated over $161 million in economic impact for the St. Louis region.
The International Institute CDC is a member of the St. Louis CDFI Coalition, a partnership among eight CDFIs that offer an array of capital, development, and consulting services and share a common mission to empower a comprehensively healthy St. Louis community through support for nonprofits, small businesses, and communities facing disinvestment.
Justine PETERSEN Breathes Life into Fiddlehead Fern Cafe
Darcy Heine, owner of Fiddlehead Fern Café, dreamed of opening a neighborhood cafe and gathering place in the Shaw neighborhood on the site of an abandoned gas station.
She was looking for funds to use for a build-out of her restaurant, equipment, and furniture, as well as working capital. However, traditional banks and lenders don't typically lend to start-up businesses.
After getting rejected by traditional funding sources, Darcy found Justine PETERSEN.
“Darcy Heine, owner of Fiddlehead Fern Café, is a 4th generation and lifelong resident of the Shaw Neighborhood. Her passion for the community is what the Café has been built upon. Darcy has a background in both photography and restaurant management. In 2012, after finishing her BFA and managing a small neighborhood cafe in Lafayette Square, she realized how important it is for a neighborhood to have a place to gather.”
The loan from Justine Petersen allowed her to create the space she had always envisioned. She was also able to get the proper equipment to run the business efficiently and effectively, and have working capital to get them through the first few months of having a new business open.
Owner Darcy Heine
Built on the site of a long abandoned gas station, Fiddlehead Fern Café is committed to both the physical and social revitalization of the Shaw community. What was once an empty corner in the middle of a residential neighborhood is now a welcoming and lively place for people to gather. Whether working, studying, visiting with friends and family, meeting neighbors, or enjoying live music, there is a place for all at Fiddlehead Fern Cafe.
Justine PETERSEN is proud to have helped put together such a strong pillar in this community and can't wait for them to continue to succeed.
Justine PETERSEN is a member of the St. Louis CDFI Coalition, a partnership among eight CDFIs that offer an array of capital, development, and consulting services and share a common mission to empower a comprehensively healthy St. Louis community through support for nonprofits, small businesses, and communities facing disinvestment.
