CDFI Connect Community Discussions

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Updated: 33 min 25 sec ago

Insulating CDFIs from Potential Risk in Operating Emergency Loan Fund

Fri, 2020-03-27 14:22
From : Communities>>Open Forum
Dear Colleagues - We're working with small business lenders that are obtaining funding for emergency loan programs to make sure that they are insulated from potential risk, from an audit perspective. It is likely that you will need  special documented accounting and finance procedures that will need sign off from your Board of Directors. If you find yourself in this situation, please feel free to reach out to me directly.  Thanks and all the best. ------------------------------ Jason Friedman Principal [More]

CDFI Friendly America

Thu, 2020-03-26 14:09
From : Communities>>Open Forum
In January, Mark Pinsky and I launched CDFI Friendly America, a new way of bringing the value of CDFIs flexible capital and know-how to America's small cities and towns. We are excited to introduce a new strategy to make it easier for CDFIs to work in smaller communities by helping leaders in those towns and cities work effectively with CDFIs. We are on a mission to bring the CDFI industry to under-served communities in towns and small cities across the nation. Instead of starting new CDFIs, CDFI [More]

RE: New COVID-19 OFN Member-only Communiity and March 17 Webinar Highlights

Mon, 2020-03-23 15:42
From : Communities>>Open Forum
Hi Seth, Thanks for this post. I hope this message finds you all well. I know things are chaotic right now given the COVID-19 pandemic. I hope you, your clients, your staff, and your loved ones all remain healthy and safe in this time of uncertainty. I wanted to let you all know what we've been doing at Kiva in response to the COVID-19 Pandemic. Under these difficult circumstances Kiva is actively taking steps to iterate upon our existing loan product to help the small businesses that we know are [More]

RE: Forbearance

Mon, 2020-03-23 13:37
From : Communities>>Open Forum
We are a rural Minnesota small business lender, and have offered 3 months of interest only or full payment deferments to all of our direct loans with interest continuing to accrue.  Offer was made on Friday, and about 25% have taken us up on it by Monday morning.  How to restructure will be case-by-case.  Some of our larger loans who are early in their amortization schedule will see significant interest accrue during the deferment period. ------------------------------ JeffreyWig VP for Entrepreneurship [More]

RE: Forbearance

Mon, 2020-03-23 12:23
From : Communities>>Open Forum
To Nathanial Owen and others, Nathanial, you were wondering if a blanket 90-day forbearance will build trust and loyalty with your borrowers. I can promise it will, read below from just one of our borrowers... To Everyone at The Progress fund: I just wanted to take a minute to send a Thank You to everyone on your team. First, thank you for helping us get our business Wild Blue Adventure Company going last fall. It was a dream come true and has exceeded all of our expectations. (We were [More]

RE: Forbearance

Mon, 2020-03-23 11:56
From : Communities>>Open Forum
We are offering all out borrowers (upon request) a choice of a 90 day payment moratorium loan modification.  We will accrue interest and extend the maturity date. Or 60-180 days interest only period with either an extended maturity date or a reset on the amortization for the original loan period.   we sent letters with our monthly statements that went out last week stressing that borrowers should contact us if they were unable to pay. ------------------------------ Carrie Zaslow Executive Director [More]

RE: Forbearance

Mon, 2020-03-23 11:06
From : Communities>>Open Forum
Hello Nathaniel, Thank you for sharing. Having gone through Hurricane Sandy and 9/11, we have policies in place for loan deferment that loan officers can propose for clients in their portfolio. We presumed that everyone would want 3 months of loan deferment at minimum, but our clients with grocery and corner convenience stores are doing well for now so are making partial payments. I agree with you about not making clients go through hoops to get a loan deferment. One less thing for them to stress [More]

RE: Forbearance

Mon, 2020-03-23 10:41
From : Communities>>Open Forum
Kimberly, Would you mind sharing your "swiss army knife" loan modification form? - Leo Leo J. Ries 414-852-2122 lries38@gmail.com

RE: Forbearance

Mon, 2020-03-23 09:55
From : Communities>>Open Forum
I have put together a kind of "swiss army knife" loan modification form so that lenders can do these as temporary loan mods quickly and with minimal committee intervention. The problem with a forbearance is that you are saying that the loan is in default in order to forbear or waive defaults. If you can modify the loan to give businesses 90 days to catch up then your own loan portfolio won't take that kind of hit and you won't have to call on your loan loss reserves quite yet, perhaps. Just a thought [More]

Positive Impacts of Investing in and with Indigenous Communities

Mon, 2020-03-23 09:54
From : Communities>>Open Forum
For OFN members - GreenMoney's new March 15th issue on  "Investing in Indigenous Communities - Part 2"  is online now featuring:  • the staff of  First Peoples Worldwide  on  Dakota Access Pipeline (DAPL) case study ;  • Becky Albert-Breed of  First Nations Community Financial ;  • Dan Chu of the  Sierra Club Foundation ;  • Kate Finn of  FPW  on  the social and economic well being of Native Women ;  • Mark Sevestre of  NATOA  and Katie Wheatley of  SHARE/RRII .  A new Podcast with Bernadette Demientieff [More]

Files Attached Document
Positive Impacts of Investing in and with Indigenous Communities

Steps to starting a loan fund

Mon, 2020-03-23 08:38
From : Communities>>Open Forum
​​Currently Lake Trust Credit Union is a CDFI in Michigan.  We are exploring the possibility of also starting a loan fund.  We are at he very beginning of the exploration.  I would like some guidance on what resources we might find useful for discovering what the organization and start up might look like. Is their reading material that you can point me to as well as possible contacts to call and discuss the process? Thanks! ------------------------------ Bill Lantzy Strategic Innovation Lake Trust [More]

RE: Forbearance

Fri, 2020-03-20 18:09
From : Communities>>Open Forum
We are a small business lender in Nebraska. We are offering up to 90 days of reduced or deferred payments. We are asking borrowers to contact us to state how many months (up to 3) and requested payment (reduced or deferred). For documentation we are being super flexible and will even accept just a brief narrative of impact from the business owner for some businesses. Loans will be extended on the back end by the requisite time. If we were someplace like San Francisco, I would consider the blanket [More]

RE: Forbearance

Fri, 2020-03-20 17:42
From : Communities>>Open Forum
We are strongly considering doing a blanket 90-day forbearance for our portfolio. We are a micro- and small business lending CDFI in San Francisco, and basically all of our borrowers are at little to no operations currently. As such, we don't think it makes sense to ask our borrowers to reach out to us or submit documentation since we already know almost all of them need this. We also think it will help build trust and loyalty over the long-term by voluntarily providing this to our borrowers. ------------------------------ [More]

RE: Forbearance

Fri, 2020-03-20 13:45
From : Communities>>Open Forum
We have notified all 1200 borrowers in our mortgage loan portfolio that we are available of they are having loss of income can not make payments. We plan to follow our standard procedures for loss mitigation including forbearance agreements, repayment plans or modifications as needed. While we are not advertising it we plan to waive late fees for any borrower who enters into a payment plan or modification. Our main goal is to get borrowers to let us and their 1 st mortgage lender know if they [More]

Technology Policy Examples

Fri, 2020-03-20 10:50
From : Communities>>Open Forum
Hi All, Any CDFIs have technology policies they would be willing to share? We are in the beginning stages of working with our external IT team to put together some policies and procedures around borrower data security for all of the platforms we use (Salesforce, email, shared drive, etc.). It would be helpful to have other CDFI policies to reference as we start defining and documenting our protocols. Thanks in advance for any examples or guidance you can provide! Victoria ------------------------------ [More]

RE: Forbearance

Fri, 2020-03-20 10:43
From : Communities>>Open Forum
Shared Capital Cooperative has offered forbearance for 60 day (2 payments) for any of our borrowers who request it.  It sounds like a number of other CDFIs are using a similar approach.  We will accrue the interest and add two more months to the end of the loan to make up for it. ------------------------------ Mark Fick Director of Lending Shared Capital Cooperative St. Paul MN 6127672125 ------------------------------

New COVID-19 OFN Member-only Communiity and March 17 Webinar Highlights

Thu, 2020-03-19 22:14
From : Communities>>Open Forum
Hi everyone, We have formed a new COVID-19 OFN member-only community on CDFI Connect and moved the existing COVID-19 thread on the Open Forum into the new community. The new community provides a private space for our CDFI members to share information, resources, and documents with each other.  A recording on the March 17 webinar is also available in the new community. The March 17 webinar highlighted three specific CDFIs and how they have responded to the COVID-19 pandemic.  Below are some highlights: [More]

Does the COVID-19 virus effect this CDFI Fund round?

Thu, 2020-03-19 19:48
From : Communities>>Open Forum
Dear Colleagues - the short answer is, it doesn't.  We're fielding calls from CDFIs asking whether they should change the frame of their FA application to focus on small businesses and/or homeowners affected by the crisis. You could, but it won't help.  Why?  It's not a stimulus/economic recovery program - the FA application is about making the case for growth in deployment, performance and impact.  There have been no changes to the NOFA. The scoring guidelines haven't been changed, so no [More]

Files Attached Document
Does the COVID-19 virus effect this CDFI Fund round?

How we are doing it

Thu, 2020-03-19 19:11
From : Communities>>Open Forum
First, our logic in giving a blanket relief, was to be fast, and with the fact that 50% of our portfolio is in either accommodations or food service related businesses. And we figured the others that aren’t, although they might be able to pay in April could use the funds in other helpful ways in their business. As for the mechanics of our process, at the beginning of the Great Recession, we had similar issues within the portfolio around borrowers cash flow struggles. We helped them weather that storm [More]

RE: COVID-19 response

Thu, 2020-03-19 18:58
From : Communities>>Open Forum
Thanks for sharing this. Are you willing to share the form you're using? ------------------------------ Lesli Pintor Executive Director Growth Partners Arizona Tucson AZ (520) 382-9218 ------------------------------

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