Balancing the Mission Checkbook

Twin Cities' Underserved Areas to Benefit from Midwest Lenders Alliance funded by JPMorgan Chase

March 24, 2014
In:

Minneapolis-St. Paul, MN, March 24, 2014 — Vital new private-sector funds will be flowing into the Twin Cities to help low-income communities and special-needs residents. Nonprofits Assistance Fund will soon have access to additional capital for lending thanks to a new partnership between Minnesota’s Nonprofits Assistance Fund (NAF), Chicago-based IFF, and the JPMorgan Chase Foundation. Both NAF and IFF are certified Community Development Financial Institutions, a designation of the US Department of the Treasury. Through the Midwest Lenders Alliance, Twin Cities' nonprofits will have access to longer term, below market flexible capital financing to build or renovate their facilities. The funding is part of JPMorgan Chase’s innovative nationwide community development financial institution (CDFI) Collaboratives Initiative. The Alliance also includes the Cincinnati Development Fund, a CDFI that serves southwestern Ohio.

“With our participation in the Midwest Lenders Alliance, funded by Chase, we'll be able to offer a new kind of long-term financing for nonprofits," said Nonprofits Assistance Fund Executive Director Kate Barr. "Having stable, quality facilities allows nonprofits to grow and deliver essential services in the community. We’re excited to work with IFF and Cincinnati Development in this collaborative, and we applaud Chase's leadership in assisting established CDFIs to expand their coverage to underserved communities.”

“Chase views community development financial institutions as critical change-agents in underserved communities,” said Matt Reilein, senior vice president in charge of CDFI and New Markets Tax Credit lending for Chase. “Our $3 million grant to the Midwest Lenders Alliance is part of the firm’s $33 million commitment made through our new CDFI Collaboratives program that will help our partners serve more people in need, as well as catalyze investment in low- and middle-income communities across the US.”

CDFIs are designated by the US Treasury to provide loans, investments, financial services and technical assistance to underserved populations and communities. The program that Nonprofits Assistance Fund and IFF are launching meets a high demand for long-term loans to nonprofits that are facilities-intensive, such as charter schools, community clinics, and human service agencies. “We will be able to use these grant funds as leverage to attract additional private financing dollars,” said Kate Barr of Nonprofits Assistance Fund, “the value for community projects is exponential.”

 

Chase and the JPMorgan Chase Foundation have invested in top-tier CDFIs for more than 20 years. The company remains a national leader in its community development financing. Over the last three years, Chase provided more than $100 million in grants to CDFIs and over $1 billion in loans, grants and investments to CDFIs and their affiliates.

About JPMorgan Chase & Co.

JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $2.4 trillion and operations worldwide. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, asset management and private equity. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of consumers in the United States and many of the world's most prominent corporate, institutional and government clients under its J.P. Morgan and Chase brands. The Firm and its Foundation give approximately $200 million annually to nonprofit organizations around the world and lead volunteer service activities for employees in local communities, utilizing its many resources, including access to capital, strength, global reach and expertise. More information is available at www.jpmorganchase.com.

About IFF

One of America’s leading nonprofit community development financial institutions (CDFIs), IFF strengthens nonprofits and their communities through lending and real estate consulting that helps these organizations plan, finance, and build facilities that are critical to their success. Founded in 1988, IFF has total assets of more than $270 million and serves nonprofits working with low-income communities and special needs populations in Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Ohio, and Wisconsin. Please visit www.iff.org.

About Nonprofits Assistance Fund

Nonprofits Assistance Fund strengthens the community by investing capital and expertise in nonprofits. The organization works with nonprofits in all fields of service by offering loans, training, and financial management advice and resources to help them address unexpected events, finance new opportunities, and realize strategic goals. In the last year the Fund made 86 loans totaling $11 million for working capital and facilities to nonprofits in Minnesota. For more information, please visit www.nonprofitsassistancefund.org or call us at (612) 278-7180.