Make a Smart, Sound Investment
These products are designed not only to achieve our community objectives, but also to provide our investors with a competitive rate of return.
Please contact us for details.
Clearinghouse CDFI Investment Opportunities
Clearinghouse CDFI is a for-profit, community development financial institution (CDFI) located in Lake Forest California. We are committed to providing economic opportunities and improving the quality of life for low income individuals and/or communities through innovative and affordable financing.
We accomplish these objectives by offering innovative products to investors seeking to enhance their activities in the revitalization of the states we serve. These products are designed not only to achieve our community objectives, but also to provide our investors with competitive rates of return managed by an experienced and successful executive team. Our unique for-profit structure, combined with strong financial results (profitable in each of the past 16 years) provides investors with a solid financial partner to help achieve our objectives together.
Clearinghouse CDFI addresses unmet credit needs in California, Nevada, Arizona, New Mexico, and Sovereign Nations in the Western United States. 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 20 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. Today, Clearinghouse CDFI has over $295 million in assets.
We offer a variety of investment products designed to fulfill the needs of a variety of investors. These primary products are:
• Equity Offering
• Customized Debt Arrangements
Each of these products is described in further detail below. We look forward to discussing these opportunities with your organization as we continue to demonstrate that community development lending can be sustainable and profitable.
Equity Offering: Class “A” voting stock Investment Summary
Clearinghouse CDFI’s class A stock continues to be a popular vehicle for those investors seeking to “leverage” their CRA investment dollars. The ability to vote for shares also provides investors with an opportunity to control the company’s operations and “become one of us”.
Equity… To the degree that investors choose the Equity Offering, they receive the voting rights of a Class “A” shareholder. Clearinghouse CDFI has paid a $1 per share dividend each year for the past 8 years.
Leveraging CRA…Investors can enjoy the benefits of taking credit for their pro-rata ownership interest in every loan made by Clearinghouse. Clearinghouse CDFI anticipates funding approximately $120 million of loans in 2016. For example, an investor of $500,000 in Class “A” stock would own approximately 2.8% of the company. The result would be an annual “lending test” credit of $3,360,000 ($120 million * 2.8%). This credit applies year after year, making this investment one of the most effective CRA investments available.
COIN Tax Credits…Also, an investment in Clearinghouse CDFI stock is eligible for a onetime 20% California state tax credit called “COIN”. Availability of these credits are on a first come, first serve basis. Clearinghouse CDFI staff will assist in the application process for these credits.
Economic Value…While an investment in Clearinghouse CDFI stock is not actively traded on any public exchange, the book value per share of approximately $200 greatly exceeds the par value price of $100. Clearinghouse staff may be able to assist an investor who wishes to liquidate the stock to sell to another existing investor.
Zero interest deposits:
Some of our partners choose to support us by simply providing a non interest bearing deposit which allows Clearinghouse to more efficiently fund our operations and satisfy certain unmet credit needs in our communities. An investor’s return results from the receipt of a 20% onetime California state tax credit (see COIN above.), making this investment a competitive investment alternative. These deposits must have a rate of 0% and a maturity of at least 5 years.
Customized Debt Agreements:
Several investors have chosen to provide specific credit facilities to Clearinghouse CDFI based upon our strong financial condition, consistent earnings and a history of making significant, positive impacts in the communities we serve. These credit lines can be secured or unsecured and range in maturity and rate. The team at Clearinghouse is ready to customize a facility which best meets your investment objectives.
The Management Team:
The team at Clearinghouse CDFI brings decades of experience from low-income housing, non-profit management and regulated banking backgrounds. Clearinghouse is considered to be one of the premier community development financial institutions in the nation. Read key individual profiles.
Clearinghouse CDFI Summary:
Since 1996 Clearinghouse CDFI has been demonstrating that community development lending can be done prudently and profitably. Most importantly these loans have a major impact in the low-income communities they serve. Investors in Clearinghouse CDFI will not only share in the strong returns obtained, but will help broaden the scope of community development lending in the States of California, Nevada, Arizona, New Mexico, and Sovereign Nations in the Western United States.