CDFI Connect Community Discussions

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Updated: 26 min 11 sec ago

RE: Board Compensation

Wed, 2021-11-24 11:04
From : Communities>>Open Forum
Thank you all for these different perspectives and the integration of them (esp. Kate's framing of traditionalists vs. change advocates), and the CDFI Fund's angle. Sheree, thanks for sharing your experience. It sounds like is was (still is?) a very challenging situation, and I appreciate learning from your experience. All of this will help me frame guide our discussion. If anyone does still provide monetary compensation (beyond reimbursing out of pocket expenses, childcare, etc.), especially in [More]

RE: Value of access to capital as solution path for underserved populations

Tue, 2021-11-23 12:58
From : Communities>>Open Forum
In case anyone else is interested in Lisa's work, she has made finding it relatively easy. Go to https://www.lisaservon.com/. ------------------------------ Brian Coppom Colorado Agricultural Future Loan Program Manager Colorado Department of Agriculture Broomfield, CO 720.347.8095 ------------------------------

RE: Value of access to capital as solution path for underserved populations

Tue, 2021-11-23 12:44
From : Communities>>Open Forum
Thanks, Brett. I agree the access to capital is a still critical component (can't get the car on the road if there's no fuel in the tank). One of the slice of borrowers we are aiming to serve is beginning farmers and ranchers, so we'll have a good portion of start-ups but, to your point, there's a difference between someone new to business and someone with business experience who is starting a new venture. I'm hoping insight into some of these nuances can help us with application design and directing [More]

RE: Value of access to capital as solution path for underserved populations

Tue, 2021-11-23 12:37
From : Communities>>Open Forum
Hi, Marcella. Thank you for sharing this study. I'm encouraged by the possibility of having some tools to help understand and support different borrowers. We're very focused on the long(ish)-term impacts and non-financial support seems key to creating those. Best, Brian ------------------------------ Brian Coppom Colorado Agricultural Future Loan Program Manager Colorado Department of Agriculture Broomfield, CO 720.347.8095 ------------------------------

RE: Value of access to capital as solution path for underserved populations

Tue, 2021-11-23 10:21
From : Communities>>Open Forum
Hi Brian, Though this longitudinal study is not specifically focused on the barriers to success for small business creation, in it's assessment of the impact of small and micro loans on business, it demonstrates that access to capital is indeed critical, and what I found most interesting is how they create profiles to show that "entrepreneurs are diverse in terms of how they define success, their business acumen, and the support they need to be successful. Analysis of the study's longitudinal data [More]

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RE: Value of access to capital as solution path for underserved populations

Tue, 2021-11-23 10:03
From : Communities>>Open Forum
Hi Brian,  Lisa Servon, one of the study's authors, is actually on the board of directors of Ascendus, a US CDFI microlender based in NYC. She has written a lot on the topic and offered a lot of feedback on how to tailor programs appropriately. I think the results in that particular study are asking a more narrow question about the role of capital in the initial entrance into self-employment given the sample looked at. Very few microlenders work with a high volume of pure start-ups (applicants applying [More]

RE: Board Compensation

Tue, 2021-11-23 09:27
From : Communities>>Open Forum
Thank you all for the robust discussion of an important question. This is relevant for us at propel Nonprofits both for our own board discussion as well as in our consulting and training programs for nonprofits and their board development. I posted a similar question a while ago on the forum for Board Source that resulted in a lovely discussion that feel into two camps, what I would call the traditionalists who were mortified at the idea of tinkering with the 'best practice" of voluntary boards. [More]

Value of access to capital as solution path for underserved populations

Mon, 2021-11-22 18:52
From : Communities>>Open Forum
Hi, We are developing a new program for agricultural lending and I ran across the linked study of whether access to capital is the primary driver of entrepreneurial success for underserved populations. Per the authors, "...our analysis yields no evidence that financial capital constraints are a significant barrier to small-firm creation." Is anyone familiar with this 2011 study or have any thoughts on how the conclusion differs from your experience? We are attempting to identify what additional [More]

RE: Member Monday

Mon, 2021-11-22 09:47
From : Communities>>Open Forum
In this week's Member Monday, we will take a look at the work of Cincinnati Development Fund. Serving the Greater Cincinnati area, CDF's vision is to be at the forefront of redevelopment plans to help low-income communities preserve their historic buildings and create vibrant, inclusive neighborhoods. To date, CDF has lent $457.3 million, deployed $328.4 million in new market tax credits, created/retained 16,470 jobs and created over 3,600 affordable housing units. CDF's Storefront Activation program [More]

RE: Board Compensation

Fri, 2021-11-19 13:51
From : Communities>>Open Forum
Thanks, Sheree! I want to dovetail back to a brilliant post by Oliva Rebenal and make one amendment. This discussion has been focused on the question of board compensation for decidedly affluent, high-level professionals - in other words, people of wealth and status. What does that mean for low to middle income professionals who have important perspectives and experiences, and have influence in their community that can be extremely valuable to the organization? Some of these folks may be hourly wage [More]

RE: Board Compensation

Fri, 2021-11-19 13:06
From : Communities>>Open Forum
Hello Everyone, I am the Executive Director of Second Chance Community Outreach , Inc. We are also a new start up CDFI. Recently, the majority of my board resigned due to this potential conflict of interest involving board compensation. They each were given an opportunity to continue serving on the board without getting paid or be considered as a potential third party (compensated) affiliate. The majority chose to ultimately provide services which generated revenue. However, none are still involved. [More]

House Passes Build Back Better Act!

Fri, 2021-11-19 10:12
From : Communities>>Open Forum
After months of negotiation, the House of Representatives has passed their Build Back Better infrastructure bill today! The House approved the bill essentially along party lines with 220 votes in favor and 213 in opposition. This bill includes several CDFI priorities and has the potential to bring billions of dollars of new capital to CDFIs. The bill provides additional funding for housing, community facilities, small business, green lending, and creates new tax incentives. The Senate is expected [More]

CNHED launches new "Guide to Small Business Financing: Navigating Lending Options"

Fri, 2021-11-19 09:52
From : Communities>>Open Forum
Greetings everyone, I would like to share a new resource recently launched by the Coalition for Nonprofit Housing & Economic Development (CNHED) - a Guide to Small Business Financing: Navigating Lending Options for Your Business. You can download the full report or the three parts separately at this link https://cnhed.org/news/guide-to-small-business-financing/ The Guide aims to help small business owners prepare for and navigate the various local lenders in Washington, D.C. (i.e., financial institutions [More]

RE: TILA and Reg Z requirements for Alabama

Fri, 2021-11-19 04:06
From : Communities>>Open Forum
Please note: I wanted to revise my post but I cannot. We ARE legally in compliance with our documents. This is more of an inquiry to learn more about navigating the Alabama Bank and Alabama as a CDFI lender. We're bit of a unique model. :) ------------------------------ Allison Yates Solar and Energy Loan Fund (SELF) Fort Pierce FL (772) 468-1818 ------------------------------

Contract Examples for Underwriting Loans

Thu, 2021-11-18 17:09
From : Communities>>Open Forum
Hello all, Did anyone put out an RFP to process their loans when they were starting out? Looking for examples of RFPs and contracts for underwriting/processing loans.  Thank you in advance for any guidance.  Lucy Sasser lucy_sasser@kenan-flagler.unc.edu  ------------------------------ Lucy Sasser Student Eastern Native CDFI Pembroke NC 9107754065 ------------------------------

RE: Character Based Lending

Thu, 2021-11-18 17:04
From : Communities>>Open Forum
Hi Amber, You could also check out Common Future who is has launched a new character-based lending program: https://www.commonfuture.co/. We at ICA also do non traditional underwriting if you'd like to learn from our team. Let me know if we can be helpful. Allison ------------------------------ Allison Kelly CEO, ICA allison@ica.fund www.ica.fund ------------------------------

RE: CDFI Insurance Coverage

Thu, 2021-11-18 13:53
From : Communities>>Open Forum
@Ruben Alonso it was a long search for our team, but I understand that we were able to secure D&O thorugh USI Insurance Services Northwest 601 Union St, Suite 1000, Seattle, WA 98101.  (206) 441-6300 www.usi.com Wishing you success!​ ------------------------------ Caprice Pratt Small Business Lending Outreach / Underwriter Spruce Root, Inc., Southeast Alaska ------------------------------

RE: Board Compensation

Thu, 2021-11-18 13:36
From : Communities>>Open Forum
This is a terrific thread and one that deserves a lot more focus and consideration than it has received in the past. I am of two minds on the issue of board compensation and compensation policies in general at CDFIs. On the one hand, those of us who have benefited from our participation in the CDFI ecosystem have an obligation to give back or "tithe" as Martin Eakes always says. Those starting in the industry know that they are never going to be members of the "one percent" or the "forty percent" [More]

TILA and Reg Z requirements for Alabama

Thu, 2021-11-18 13:33
From : Communities>>Open Forum
Good afternoon! Are there any CDFI lending organizations that are currently lending in the State of Alabama, and if so, would you mind sharing some information regarding your TIL documentation regarding written itemization of the Amount Financed, including the amount distributed directly to the consumer, the amount credited to the consumer's account with the creditor; and any amounts paid by the creditor to third-parties on the borrower's behalf, including disclosing their name? Or maybe we can [More]

RE: Loan Modifications_Pymt due date and maturity - Requirements and Best Practices

Thu, 2021-11-18 13:03
From : Communities>>Open Forum
Thank you, Caprice! You have been so helpful! I will definitely check that out.  One day I'll get back up to Alaska to visit my home state. :)  Have a great weekend and Thanksgiving holiday! ------------------------------ Allison Yates Solar and Energy Loan Fund (SELF) Fort Pierce FL (772) 468-1818 ------------------------------

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