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Contents

A Look Inside

Comptroller Dugan on Minority-Owned Banks

OCC Affirms Support for Minority-Owned Banks

OCC List of Minority- and Women-Owned Banks

Minority Bank Deposit Program

MinBank Foundation Scholarships

National Bankers Association – The NBA Journey

NBA Promotes Business Partnerships

Canyon National Bank

OCC Resources on Native American Banking

Commonwealth National Bank

United Americas Bank, N.A.

Omni Bank, N.A.

Supervising Minority- Owned Banks: A Two-Way Street

Compliance Corner: Encouraging Investments in Minority-Owned Banks

How Majority and Minority-Owned Institutions Can Work Together

Benefits of CDFI Certification

List of Minority- Owned CDFI Banks

OCC's News from the Districts

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OCC's Community Affairs Department

(202) 874-5556

CommunityAffairs
@occ.treas.gov

Articles by non-OCC authors represent their own views and are not necessarily the views of the OCC.

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This Just In . . . OCC’s Districts report on new opportunities for banks –

Looking for new investment ideas? In this article, OCC's district community affairs officers (DCAOs) report on financing initiatives and partnership opportunities in each of the OCC's four districts. While not endorsing specific organizations or programs, DCAOs can provide more information about these and other community development investment opportunities. DCAOs can also consult with national banks in developing successful approaches to community development lending and service delivery approaches.

Click on the map below for the DCAOs in your district.

Image map of the four districts

Northeastern District

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Bonita Irving (617) 482-1643
Denise Kirk-Murray (212) 790-4053

Massachusetts Finances New Smart Growth Initiatives

The Commonwealth of Massachusetts recently enacted two legislative initiatives ("40R" and "40S") that provide funding for communities with "Smart Growth" development plans.  40R provides financial incentives to communities building higher-density affordable housing and mixed-use developments in designated smart growth areas.  Smart growth areas are designed to minimize sprawl by focusing development in locations with public transportation and infrastructure requirements already in place, and with “walkable” town centers providing shopping and employment opportunities independent of cars and highways.  The companion legislation, 40S, provides direct payments to towns offsetting increased educational costs per family for the newly occupied affordable housing units.

To learn more about these programs, contact the Office for Commonwealth Development, (617) 573-1380 or visit its Web site at: www.mass.gov/ocd.

Down Payment Assistance Doubles in Delaware

Recent increases in home prices in Delaware have made it difficult for new homebuyers to purchase homes. Now these homebuyers are getting financial help with buying a home.  In May 2006, Delaware State Housing Authority doubled the down payment assistance for first time homebuyers. Through the Delaware Housing Partnership (DHP) Second Mortgage Program, purchasers can now get up to $15,000 in down payment assistance for new construction. This assistance will make homes more affordable for moderate-income purchasers.  The maximum amount that homebuyers may borrow in the Second Mortgage Assistance Loan Program (SMAL) has also been increased to $6,000.  Limits on borrower income and purchase prices have been raised to meet the needs of more borrowers attempting to purchase homes. Both DHP and SMAL are used for down payment assistance or closing costs.

To learn more about these programs, contact Community Relations at the Delaware State Housing Authority, (888) 363-8808 or visit its Web site at: www.destatehousing.com

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Central District

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Paul Ginger (312) 360-8876
Norma Polanco-Boyd (216) 447-8866

Indiana Venture Center

The Indiana Venture Center (IVC) is a nonprofit organization that provides business development services to entrepreneurs developing high-growth companies in Indiana.  IVC “Entrepreneurs in Residence” work closely with budding entrepreneurs to help them meet their growth milestones, monitor the rate at which they use capital, take a long-term strategic view of their business and the market, and help them communicate with stakeholders.  IVC also has close relationships with five Indiana universities that help the Center’s staff screen prospective clients and that provide expertise to companies chosen to be clients.  In 2005, IVC worked with 29 companies to raise $3.3 million in equity capital that leveraged an additional $17 million in equity and debt investments.  IVC is now helping to form a separate seed capital fund, IVC Equity Partners, that will invest in companies in 11 Midwest states in five industry categories: transportation and logistics, alternative energy and energy generation, custom and advanced manufacturing, life sciences, and information technology related to these fields.    Banks can work with IVC by referring prospective clients to IVC, accepting referrals of companies from IVC, providing operating support to IVC and by investing in the new seed capital fund. 

For more information, contact Steve Beck at (317) 684-6810 or sbeck@ivcequitypartners.com.

Introducing the Grow Cuyahoga County Fund

The new Grow Cuyahoga County Fund makes loans of $35,000 to $1 million to small businesses in Cuyahoga County, Ohio that may not meet all conventional bank underwriting requirements but that have the potential to grow and create jobs.  The fund often makes its loans in conjunction with bank loans and tailors its terms to fit the borrower’s cash flow available for debt service, frequently by extending the loan maturity date.  Loan proceeds can be used for any business purpose, including working capital, machinery and equipment purchases, land and building acquisition, new construction, building renovation, and leasehold improvements.  Interest rates are between prime and prime plus two percent, and the loans may have terms of up to 25 years, depending on the useful life of the asset being financed.  The Board of Commissioners of Cuyahoga County (BOCC) created the fund with the National Development Council (NDC), an economic development training and financing organization that also is a licensed SBA 7(a) lender and a certified community development financial institution. NDC will underwrite close, and service loans for the fund and will provide $4 of matching funds for every local dollar invested in the Fund.  BOCC and the Cuyahoga County Community Improvement Corporation provided the initial capital for the Fund and are seeking investments from other potential partners, such as banks, the Greater Cleveland Partnership, the city of Cleveland, the Port Authority of Cleveland, and local foundations.  Banks can become involved in the Grow Cuyahoga County Fund by: (1) structuring the fund into financing packages for borrowers, (2) referring prospective borrowers to the fund, and (3) investing capital in the fund. 

For more information, contact Anthony Thornton, Economic Development Manager, at (216) 443-3159 or by e-mail at cdart@cuyahogacounty.us.

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Southern District

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Scarlett Duplechain (504) 828-6555
Karol Klim (678) 731-9723 x252
David Lewis (214) 720-7027

Top of Alabama Regional Council of Governments

Top of Alabama Regional Council of Governments (TARCOG) is a state-designated planning district operating in five northern Alabama counties. TARCOG provides funding access and technical assistance from programs of the Appalachian Regional Commission and Economic Development Administration. TARCOG staff support, write and administer grant and local program applications for HUD-funded state CDBG programs and USDA’s Rural Development grant and loan programs. In addition, TARCOG has its own revolving loan fund (RLF).  The RLF can provide additional financing to start-up and existing businesses behind a traditional commercial lender’s financing.  TARCOG is interested in working with banks that need a secondary source of financing to fund loans that create jobs.  The loan can be used for business expansion or start-up of regional private for-profit firms.  The fund can finance up to 50 percent of the total project cost or $125,000, whichever is less.  The maximum amount allowed for working capital is $30,000.  Terms are 10 years for land and building, 5-7 years for manufacturing/equipment, and 3 years for working capital.  Rates are negotiable at or below prime. 

For more information, contact Joe Howe, Project Officer at (256) 830-0818, or see their Web site.

New Markets Tax Credit Investment Opportunity

Lone Star New Markets LP (LSNM), a community development entity (CDE), was awarded a $10 million tax credit allocation from the U.S. Treasury's New Markets Tax Credit Program (NMTC).  The managers of the Dallas-based fund intend to raise $25 million in investment capital and will co-invest with Lone Star Growth Capital LP (LSGC), a $15 million fund. The fund managers intend to secure $40 million in commitments for their funds by the end of the third quarter. LSNM, which had its first closing in January 2006 for approximately $16 million, provides investment capital for businesses located in underserved communities in Texas.   LSNM and LSGC will make $1 million to $10 million equity-oriented investments in private middle-market companies located in low-to-moderate income areas in Texas. LSGC investors will receive a stated preferred dividend on invested capital. 

For more information, contact Arthur W. Hollingsworth, Managing Partner, Lone Star New Markets LP, at (972)702-7390, or visit the Fund’s Web site at www.lonestarnewmarkets.com.

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Western District

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Susan Howard (818) 240-5175
Dave Miller (720) 475-7670

Hawaii Community Reinvestment Corporation

The Hawaii Community Reinvestment Corporation (HCRC) is a nonprofit community-based financial services corporation that provides equity and financing for affordable housing developments throughout the state of Hawaii.  The corporation was chartered in 1991 to provide technical and financial assistance for the creation and preservation of affordable housing in Hawaii.  Since its inception, it has made more than $147 million available for rental projects generating more than 2,600 affordable units.  The projects have been completed through a combination of partnerships of financial institutions, private investors, and government agencies.  HCRC offers permanent loans and tax credit equity funds.  It also provides equity financing through the Hawaii Equity Loan Program (HELP).  Six banks participate in the tax credit equity fund and nine have partnered to lend to the organization supporting the funding of more than 50 projects on five of Hawaii’s islands.  Project loans are long term and may be in amounts of up to $10 million.  

For additional information regarding HCRC, contact Donald L. Tarleton, President, at 808-532-3115 or tarleton@lava.net.    

Native American Bank

Native American Bank, N.A., (NAB) is a minority-owned community development financial institution formed by a number of tribal nations and Alaska native corporations in 2001.  NAB has been certified as a community development financial institution (CDFI) and a community development entity (CDE) for participation in the New Markets Tax Credit program.  NAB is a wholly owned subsidiary of Native American Bancorporation (NABC), a single bank holding company.   NABC is seeking to raise additional capital from Native American investors supplemented with additional investments from non-Native American businesses, banks, and foundations that share the vision of NABC and its commitment to improving economic conditions in Indian Country. The bank provides retail banking services, commercial lending, and agricultural lending services primarily to the community of Browning, Montana.  NAB also maintains loan production offices in Box Elder, Montana, and Anchorage, Alaska.   NABC has also established a community development corporation, Native American Community Development Corporation, focused on infrastructure, and individual (including housing) and small business needs. 

For more information about investment opportunities with NAB, please contact Native American Bancorporation at (303) 988-2727 or visit the bank’s Web site at www.nabna.com

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