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A Look Inside...

This truck is spraying EZ Bond Maximum Fiber Matrix to temporarily stabilize dirt piles on construction sites. Phoenix Paper Products, Inc., the manufacturer of this paper and corn fiber product, received a loan from Upper Illinois River Valley CDC, a multibank CDC in north central Illinois. Banks are meeting the needs of their communities by working together. Multibank community development corporations (CDCs) offer a collaborative approach that has been successful over the last two decades and, because of their flexibility, remain so today. They are designed to fill financial gaps through bridge loans, venture capital, or gap financing, when housing or economic development plans are good. MBCDCs can finance these projects because they spread the risk on projects that cannot qualify for conventional bank financing.

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Tips for Creating For-Profit Multibank CDCs

These US Sonet engineers are installing residential and commercial cable service in rural Salem, IL. US Sonet is an example of a loan recipient from a multibank CDC, Jefferson Marion Washington CDC, in Illinois. This loan enabled US Sonet to bring almost a dozen jobs to the community and a fiber optic network of underground cables, for Internet, phone, and cable TV services. The broadband cable access helped local businesses save time and better serve the community. Banks don't have to be large to meet the needs of underserved populations in urban or rural communities. Increasingly, banks of varying sizes are joining forces and sharing knowledge under the auspices of CDCs.

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Orchestrating Community Economic Development

This US Sonet engineer is installing residential cable service in Salem, IL. US Sonet was able to bring a fiber optic network of underground cables, for Internet, phone, and cable TV services, to rural, south central Illinois through financing from Jefferson Marion Washington CDC. Multibank community development corporations are like orchestras. They bring together a group of experienced players who work jointly on projects to create something that they could not otherwise accomplish individually.

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Gap Financing Leads to Economic Development

Three employees of Carefree Assisted Living, in Cottonwood, AZ, take a break from serving 22 elderly residents. Carefree received gap financing from Arizona MultiBank CDC. The 18 banks that formed the $10 million Arizona MultiBank Community Development Corporation (MultiBank) found success when they joined together 16 years ago to form a single entity. The entity was designed to spread risk and expense and concentrate expertise in the delivery of a special brand of community development financing. Today, MultiBank lent its initial investment nearly four times and continues to actively support emerging and underserved local markets in Arizona.