Idaho-Nevada CDFI works to increase access to capital for small businesses and community development organizations. The groups that we support strive to create jobs in disadvantaged regions of the western United States, promote affordable housing, and combat community deterioration. Although our primary focus is in Idaho and Nevada, we consider financing important community development projects in other western intermountain states.
The Idaho-Nevada Community Development Financial Institution achieves its mission through the following services and products:
- Direct short and long term loans
- Financial packaging for other lenders
- Financial analysis of small business, housing and infrastructure projects
- Building partnerships with other lenders and technical assistance providers
- Technical assistance to applicants
- Post-closing counseling and servicing
The target market for the Idaho-Nevada CDFI consists of all the CDFI and NMTC eligible areas within the states of Idaho and Nevada, encompassing more than 900 separate census tracts. Faculty at Idaho State University helped prepare a comprehensive need and market study. This study shows that nearly one-third of the people in both states live in CDFI eligible areas, i.e. areas that are economically distressed. In addition, both states lack an adequate supply of affordable rental housing, and home prices in both states essentially price low income people out of the market. Furthermore, the study shows that there is an acute shortage of small business finance in both states.
As of December 31, 2008 the CDFI has approved/closed forty-three loans totaling over $38,454,314 (this includes over $9,862,500 in loans which the CDFI has participated out to its investor banks) which leveraged an additional $87.3 million in financing from other sources. Overall the CDFI has created or preserved over 321 permanent jobs, 1,169 construction jobs and 1,330 units of affordable housing.
Putting together a complete financing package for any developer of Affordable Housing Tax Credit projects can be a challenge, but once in place it is anticipated that things will move forward with only minor hitches. That's what developer Community Development, Inc. (CDI) thought they had, but when their project, North Creek Apartments in Post Falls, Idaho was complete and CDI approached the financial entity about conversion to a permanent loan, the entity expressed surprise that it had provided a letter of interest and chose not to underwrite the deal and provide a permanent loan. Full Story