$500,000 equity investment will help to serve distressed communities in California and Nevada
LAKE FOREST, CA – May 28, 2015 – Clearinghouse Community Development Financial Institution (CDFI) announced today a $500,000 “Class A” equity investment from Charles Schwab Bank. This investment positions Charles Schwab Bank as Clearinghouse CDFI’s 10th largest Class A Shareholder, and brings Clearinghouse CDFI Class A shares to over $12 million. It will allow Clearinghouse CDFI to continue its mission of serving low-income, distressed communities.
“Charles Schwab Bank is a long-term community partner of Clearinghouse CDFI,” said Douglas Bystry, President and Chief Executive Officer of Clearinghouse CDFI. “We are grateful for their recent investment, which supports our mission to finance impactful projects that revitalize distressed communities.”
Clearinghouse CDFI will utilize the $500,000 investment to finance community facilities, affordable housing projects, commercial real estate, and small businesses. Clearinghouse CDFI’s mission is to provide economic opportunities and improve the quality of life for lower-income individuals and communities through innovative financing that is unavailable in the conventional market. To date, the company has funded a total of $1.1 billion in loans for 1,585 projects in distressed communities. Clearinghouse CDFI loans have created or retained over 12,000 jobs and developed or rehabilitated 10 million square feet.
Clearinghouse CDFI has been a leader in the CDFI industry, with a number of other “firsts” in its history. It was the first non-depository CDFI to borrow from the Federal Home Loan Bank system in 2012. In 2014, it was the first CDFI to draw funds under the CDFI Fund Bond Guarantee Program, with a facility of $100 million in long term debt capital. Recently, Clearinghouse CDFI became the first non-depository CDFI to attain an S&P credit rating: ‘AA’ Stable, indicating a “very strong capacity to meet financial commitments.”
Today, Clearinghouse CDFI has over $200 million in assets and equity exceeding $33 million. Clearinghouse CDFI also received B Corp Certification in 2014 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.
“In these times of greater need, Clearinghouse CDFI continues to excel at helping stabilize low-income communities. Charles Schwab Bank is very pleased to support its efforts in the growth and prosperity of our neighborhoods,” said Dutch Haarsma, Community Development Group Director for Charles Schwab Bank.
Ron Demeter, Partner
Vectis Strategies on behalf of Clearinghouse CDFI
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2015 – Charles Schwab Bank Equity Investment