Rob Cerne, Owner Seascape Technologies

Intevation Food Group, Plover, Wisconsin

Financing Resources Community Development Financial Institutions (CDFI’s) Community Development Entities (CDE’s)

Community Development Financial Institutions (CDFI’s) US Treasury-certified specialized financial institution that works in market niches, often economically distressed areas Include both regulated community development banks and credit unions & non-regulated institutions such as loan and venture capital funds

Results. Wisconsin CDFI’s had more than $400 million in loans outstanding at the end of Examples include:

Results… Northwest Side Community Development Corporation has lent more than $3.2 million, creating more than 500 jobs (Milwaukee) Wisconsin Women’s Business Initiative Corporation – average loan created 2.7 jobs and retained 5.8 more

Results Forward Community Investments (statewide loan fund for non-profits) loans resulted in the development of 1,200 units of affordable housing and creation/retention of 3,000 jobs Community Assets for People has lent more than $10 million in housing loans and $4.5 million in business loans

Demand for Capital Demand is high – ◦Community Assets for People – business loan portfolio of $6 million at the end of 2010 ◦$900,000 in business loans deployed in 2010; ◦Over $750,000 to date in 2011 with almost $800,000 in loans now in the pipeline ◦Since 1991, 590 households purchased homes with deferred loan of more than $10 million ◦Project to help an additional 20 in 2011.

Demand for Capital The US Treasury – CDFI Fund 2011 Application Round – New Market Tax Credit Program  14% increase in requests over 2010  314 applications, the most since 2002 when the program began  $26.7 billion in requests for $3.5 billion in resources – almost a 7 to 1!

New Tools The Wisconsin Legislature is moving forward on legislation (AB 211) that would create tax credits for investments in CDFi’s in Wisconsin. Investments of at least $10,000 for 5 years would net a 10% tax credit (12% for investments of $150,000-$500,000)

New Tools Starbucks – Create Jobs for USA. Americans themselves would invest in small business. Those who donate $5 or more get a red-white-blue wristband labeled “indivisable.” Starbucks will use CDFI’s as its financial partner. Starting off with a $5 million donation.