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CDFA Revolving Loan Fund Finance Update - February 8, 2022

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Revolving Loan Funds Update
February 8, 2022
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Revolving Loan Fund Finance Update

Features

New Bipartisan Bill Would Increase Capital at Rural Community Banks
Bipartisan legislation introduced by U.S. Sen. Tim Scott (R-SC) would help community banks meet the credit needs of the local families, workers, and small businesses they serve by clarifying existing Federal Deposit Insurance Corporation (FDIC) policy to state that under safe circumstances, well-capitalized community banks, minority deposit institutions, and community development financial institutions may accept custodial deposits without facing additional regulatory requirements or scrutiny.

ARPA Final Rule – The "B-Sides Collection": Seeding RLFs
This discussion addresses capitalizing a local government's new RLF with individual, discrete loans. Bricker and Eckler address the U.S. Treasury's issued guidance as to using federal stimulus funding to seed local governments' revolving loan funds (RLFs). Specifically, the clearer guidance, via the final rule clarifying an earlier FAQ issued by the Treasury, as to the mechanics of seeding RLFs using ARPA fiscal recovery funds.

Colorado Taskforce Unveils Final $400M Affordable Housing Plan
The Affordable Housing Transformational Task Force is comprised of state lawmakers, nonprofit organizations, and housing developers. The new affordable housing plan lays out how lawmakers should spend the more than $400 million in federal relief funds Colorado received to address housing affordability through creating new revolving loan funds, supporting nonprofits with more grants, creating new building incentives, and strengthening existing programs.

Montana Launches New Program to Help Businesses Invest and Grow
Governor Greg Gianforte announced Montana entrepreneurs have a new tool to grow their businesses. Approved by the governor in December, the Montana Down Payment Assistance Program is a public-private partnership between the State of Montana and Montana's banks, credit unions, and economic development agencies.

Pennsylvania Gov. Announces $168M Investment in Water Infrastructure Projects in 13 Counties
Building on his commitment for a Lead-Free PA, Governor Tom Wolf has announced the investment of $168 million for 15 drinking water, wastewater, and stormwater projects across 13 counties through the Pennsylvania Infrastructure Investment Authority (PENNVEST). Funding sources include recycled loan repayments from previous PENNVEST funding awards, state funds approved by voters, and federal grants from the EPA.

Gov. Northam Announces Launch of Virginia Small Business Resiliency Fund
Gov. Ralph Northam has announced the launch of the new Virginia Small Business Resiliency Fund program and more than $9.7 million in grants has been awarded for 12 projects throughout the Commonwealth. The funding will assist organizations to create programs and products that will expand access to capital and provide technical assistance for COVID-19 impacted small businesses.

New $100M Fund Launches to Back Philly's Black & Brown-Owner Businesses
Philadelphia community aid groups and commercial banks have joined to fund a new loan program for Black and Brown business owners in the region, with the goal of lending $100 million over the next four years. The Philadelphia Growth, Resiliency, Independence, Tenacity (GRIT) Fund has so far garnered commitments of loans and grant money totaling just over $13 million.

Multi-Million Loan to Support Clean Energy in El Centro, TX
The North American Development Bank and Sol Orchard Imperial 1, LLC executed a $22.9 million loan increase to support capital investments, including replacement of all the inverters in the El Centro Solar Park, owned by Excelsior Energy Capital in El Centro to increase energy production.

Upcoming Events

CDFA // BNY Mellon Development Finance Webcast Series: Analyzing the Impact of COVID-19 Emergency Loan Funds
Tuesday, February 22, 2022 - 2:00 PM - 3:00 PM Eastern
During this installment of the CDFA // BNY Mellon Development Finance Webcast Series, we take a look at some takeaways from the deployment of CARES Act funds and other emergency pandemic response programs, including how communities designed emergency loan funds and what impacts the funds had on small and micro businesses.

SSBCI Coalition Meeting - February 18 (Virtual)
February 18, 2022 - 1:00 PM - 2:00 PM Eastern
SSBCI Coalition meetings will be held once a month to provide an interactive forum for CDFA members during the State Small Business Credit Initiative (SSBCI) application period. CDFA will facilitate discussions that allow for networking, peer knowledge sharing, and problem solving.

Intro Revolving Loan Fund WebCourse
March 28-29, 2022 - Daily: 12:00 - 5:00 PM Eastern
The Intro Revolving Loan Fund Course offers an in-depth look at RLF program development, implementation, and management. During this course, attendees learn the essential elements needed to operate a successful RLF program and discuss programs making a difference in communities throughout the country.

Headlines

Buffalo Bills Stadium Community Benefits Campaign Goes Public
Investigative Post | Feb. 3 | Community Development | Economic Development | Housing Finance | Infrastructure Finance | Revolving Loan Funds (RLFs)

USDA Invests $1.4B to Support Rural Businesses and Economies
USDA | Feb. 2 | Access to Capital | Agriculture Finance | Economic Development | Food Systems Finance | Revolving Loan Funds (RLFs) | Rural Development | U.S. Dept. of Agriculture (USDA)

New Report Recommends Financial Innovations to Accelerate Sustainable Agriculture
Field to Market | Jan. 31 | Access to Capital | Agriculture Finance | Bond Finance | Food Systems Finance | Revolving Loan Funds (RLFs) | Resiliency

Manchester, NH Initiative Launched to Support Minority-Owned Businesses
NH Business Review | Jan. 30 | Access to Capital | Community Development | Food Systems Finance | Revolving Loan Funds (RLFs) | Social Finance

Making Rhode Island's Food System More Sustainable and Resilient
Eco RI News | Jan. 29 | Access to Capital | Agriculture Finance | Food Systems Finance | Revolving Loan Funds (RLFs) | Resiliency | Rural Development | Tax Credits

Award Honors Founder of Credit Union That Serves Low-Income Southerners
The Daily Yonder | Jan. 27 | Access to Capital | Community Development | Revolving Loan Funds (RLFs) | Rural Development | Social Finance

Michigan Prepares to Deploy $237M for Small Businesses Through Loans, VC Fund Investments
MiBiz | Jan. 26 | Access to Capital | Agriculture Finance | Community Development | Economic Development | Revolving Loan Funds (RLFs) | State Finance Program | State Small Business Credit Initiative (SSBCI)

Investing in a More Equitable Post-Pandemic Banking System
Next City | Jan. 25 | Access to Capital | Community Development | Federal | Revolving Loan Funds (RLFs) | U.S. Dept. of Treasury CDFI Fund

National Restaurant Association Pushes to Replenish Restaurant Revitalization Fund
Restaurant Business | Jan. 24 | Access to Capital | Disaster Recovery & Relief | Food Systems Finance | Legislative | Revolving Loan Funds (RLFs) | COVID-19

Wichita, KS Launches PROPEL Loan Program for Minority and Women-Owned Businesses
KFDI | Jan. 21 | Access to Capital | Economic Development | Revolving Loan Funds (RLFs) | Social Finance

EPA Announces $688M New WIFIA Loans, $5B in Water Infrastructure Investments
EPA | Jan. 20 | Access to Capital | Federal | Infrastructure Finance | Revolving Loan Funds (RLFs) | U.S. Environmental Protection Agency (EPA) | Water Finance

DuBois, PA Receives $57.5M loan, $4.4M Grant for Wastewater Treatment
Connect FM | Jan. 20 | Access to Capital | Economic Development | Infrastructure Finance | Revolving Loan Funds (RLFs) | Water Finance | Water Finance | State Revolving Fund

Knoxville, IA City Council Working to Revitalize Downtown
KNIA-KRLS | Jan. 19 | Access to Capital | Economic Development | Revolving Loan Funds (RLFs)

How FoodLab Chicago, IL Helps South Side Restaurants Weather Pandemic
Chicago Tribune | Jan. 18 | Access to Capital | Community Development | Disaster Recovery & Relief | Food Systems Finance | Revolving Loan Funds (RLFs)


New Additions to the Online Resource Database

Financial Innovations to Accelerate Sustainable Agriculture: Blueprints for the Value Chain
Access to Capital | Agriculture Finance | Bond Finance | Food Systems Finance | Revolving Loan Funds (RLFs) | Resiliency
The purpose of the report is to equip value chain actors with innovative financial mechanisms and incentive strategies that can be employed in agricultural sustainability projects to support producers in scaling conservation adoption.


The Council of Development Finance Agencies (CDFA) is a national association dedicated to the advancement of development finance concerns and interests. CDFA is comprised of the nation's leading and most knowledgeable members of the development finance community representing public, private, and non-profit entities alike. For more information, visit www.CDFA.net or email info@cdfa.net


Council of Development Finance Agencies
100 E. Broad Street, Suite 1200
Columbus, OH 43215
(614) 705-1300
info@cdfa.net

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CDFA National Sponsors

  • Alliant Insurance Services, Inc.
  • BNY Mellon
  • Bricker Graydon LLP
  • Business Oregon
  • CohnReznick
  • Frost Brown Todd LLP
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  • KeyBanc Capital Markets
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  • MuniCap, Inc.
  • NW Financial Group, LLC
  • PGAV Planners, LLC
  • Raza Development Fund
  • SB Friedman Development Advisors
  • Stifel Nicolaus
  • U.S. Bank
  • Wells Fargo Securities
  • Z. The Bond Buyer
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