LAKE FOREST, CA – August 11, 2016 – Clearinghouse Community Development Financial Institution (Clearinghouse CDFI) is pleased to announce an inaugural $250,000 equity investment from American Business Bank (ABB) in the form of Class A stock. Headquartered in downtown Los Angeles, ABB focuses its efforts on financing middle-market businesses throughout Southern California. This new equity investment will help Clearinghouse CDFI to continue addressing unmet credit needs.
“We are delighted to have American Business Bank join our growing list of partners who, like Clearinghouse CDFI, are committed to building healthy communities,” said Clearinghouse CDFI President and CEO, Douglas Bystry. “Their investment will help us continue to bring capital to underserved areas throughout California.”
Clearinghouse CDFI will utilize American Business Bank’s investment to finance beneficial community projects such as affordable housing, commercial real estate, small businesses, and community facilities. Similar projects previously financed by Clearinghouse CDFI include:
- American Legion Post 266, Westminster, CA – A $715,000 loan for a blind and disabled veterans’ facility.
- Fair Housing Council of Riverside County, Riverside, CA – A $467,000 loan to secure needed housing services in the Inland Empire.
- EKO Multi-Purpose Center, Compton, CA – A $1.2 million loan for a vital schooling system servicing special needs children.
“We are pleased that our CRA Officer, Bruce Gumbiner, has had important contacts and resources in the CRA community and has kept the Bank’s CRA program in good shape by sourcing fine partners like Clearinghouse CDFI,” said Wes Schaefer, EVP and Treasurer of American Business Bank. “We look forward to working with this successful company and participating in their innovative concepts to provide help to the underserved in the various programs with which they are involved.”
ABOUT CLEARINGHOUSE COMMUNITY DEVELOPMENT FINANCIAL INSTITUTION (Clearinghouse CDFI):
Clearinghouse Community Development Financial Institution (Clearinghouse CDFI) addresses unmet credit needs in California, Nevada, Arizona, New Mexico, and Sovereign Nations in the Western U.S. Rated ‘AA’ Stable by Standard & Poor’s Ratings Services, Clearinghouse CDFI is an industry leader helping to bridge the gap between conventional lending standards and the needs of low-income and distressed communities.
Over the course of 19 years, Clearinghouse CDFI has funded $1.2 billion in total loans for over 1,650 projects which have created or retained more than 13,800 jobs and benefit over 1 million individuals. Clearinghouse CDFI is also a B Corp—a certification received from the nonprofit B Lab. B Corps are companies who meet rigorous standards of social and environmental performance, transparency, and accountability, and use business as a force for good. At June 30, 2016, Clearinghouse CDFI has total assets of $312 million. More information is available at: www.clearinghousecdfi.com.
ABOUT AMERICAN BUSINESS BANK (ABB):
American Business Bank (ABB) is a $1.7 billion California state-chartered financial institution headquartered in Los Angeles, California. ABB specializes in meeting the financial needs of middle-market businesses. The Bank’s strategy is to seek out and establish banking relationships with closely held businesses and continues to emphasize establishing long-term, comprehensive relationships with its business customers, which includes wholesalers, manufacturers, professional firms, and service businesses.
The bank, founded on September 28, 1998, is headquartered in downtown Los Angeles, California. American Business Bank operates four loan production offices (LPOs)located in Irvine (Orange County), Ontario (San Bernardino County), Woodland Hills and Gardena (Los Angeles County).
Ron Demeter, Partner
Vectis Strategies on behalf of Clearinghouse CDFI
Download the full announcement here: Clearinghouse CDFI Announces American Business Bank as New Investor