CDFIs have created or maintained more than 900,000 jobs—within OFN’s Member body alone!
Below are some OFN Member stories that show job creation in action.
CDFIs create jobs by financing small businesses:
With the help of Wisconsin Women’s Business Initiative Corporation (WWBIC), Leanne Cordisco, entrepreneur and chef/baker, founded two businesses that created 16 jobs in Madison, WI. Half of the employees are low- to moderate-income. “WWBIC has been a true partner. Not only has it helped with funding the start of our operations, but it has also helped promote our new business and products across Wisconsin,” says Leanne.
CDFIs create jobs by working with community facilities:
This loan and supermarket opening created 118 full-time jobs, four part-time jobs, and 40 construction jobs, with approximately 25 percent of all jobs held by local residents. Thanks to a loan from the California FreshWorks Fund (CFWF), managed by NCB Capital Impact, the 119,000 residents of City Heights now have better access to fresh and healthy foods near their homes. NCB Capital Impact disbursed $8.5 million for the development of a new 42,625 square foot, full-service Northgate Gonzalez Market.
CDFIs create jobs by supporting education:
In 2012, Reinvestment Fund provided a $3.5 million loan to E.L. Haynes Public Charter School in Washington, DC, to fund the expansion of their campus to include a high school. Haynes serves a diverse student body (54 percent African=American; 43 percent Hispanic/Latino). With the 2012 expansion, this meant growth from 800 to more than 1,200 students with the additional capacity to serve Pre-K through 12th grades.
The project created 75 construction jobs, the school created 42 new full-time jobs and 20 part-time jobs ranging from teaching positions, to custodians, to administrative staff. In 2015, E.L. Haynes celebrated its first high school graduation.
CDFIs create jobs by investing in health:
And pulled from the headlines, a 2016 CDFI partnership leveraged $51 million in New Markets Tax Credit (NMTC) financing to support the planned development of a 50,000-square-foot modern health care facility in San Francisco. CSH, Primary Care Development Corporation, Enterprise Community Investment, Northern California Community Loan Fund, along with Bank of America contributed to the financing of this project that will create 183 predevelopment and construction jobs; Retain 79 full-time permanent jobs and 4 part-time jobs, and create 16 new full-time permanent jobs and 1 part-time job.
To understand more about how CDFIs contribute to job creation, read about OFN’s recent partnership with Starbucks. The initiative—Create Jobs for USA— raised more than $15.2 million in donations in three years. CDFIs leveraged this into $105 million in financing to create or retain more than 5,000 jobs nationwide.