For Immediate Release: The St. Croix Strategic Development Initiative (SEDI) & Our Town Frederiksted (OTF) will create a new cooperative funding source for Community Development Projects Our Town Frederiksted seeks the active participation of all members of the community in improving the quality of Frederiksteds live through the revtalization of Frederiksteds economy, the restoration of Frederiksteds traditional culture, and the promotion of safety and harmony amongst all of Frederiksted. Our Town Frederiksted offers Urban Planning and City Planning Services. Mr. Alphonso Franklin, Executive Director of Our Town Frederiksted, Inc. stated, “The town of Frederiksted as well as Christiansted is desperately in need of economic revitalization. Since there are no funds available from the local government, Our Town Frederiksted, Inc. has been seeking outside sources of funding for the purpose of restoring and renovating properties and infrastructures to increase economic activity. Businesses which need Capital and property owners who needs loans below market rate to restore their property is in desperate need of a reliable source of funding. The initiative being taken by SEDI promises to bring to the town of Christiansted and Frederiksted reliable information to provide much needed funding for our community.” SEDI an Economic & Public Policy Think Tank mandate is growing local economies and strengthen the private sector to help our communities become more prosperous by leveraging all assets to support local entrepreneurs. Finding the best solutions for our community by working with you to identify the local assets, potential partners, and technical resources needed to create and sustain an entrepreneurial support initiative. Every community wants to grow its local economy and achieve greater prosperity. Every community desires to be a location where people want to live, engage in meaningful work, and pursue their passions. In short, every community wants to be a vibrant, safe, and livable place. (SEDI) Available Funding Resources and Programs: Access to Capital- Banking Community The greatest challenge facing the creation of a new non-profit will be access to capital and as neither Banco Popular, Bank of Novascotia nor Firstbank have no dedicated personnel nor commercial lenders experienced in community lending, none the larger financial institutions serving the U.S. Virgin Islands have maximized the federal and private resources created to serve communities of distress and underserved rural communities such as St. Croix and St. Thomas. Banking resources experienced in community lending whom you should reach out to include: NCB Capital Impact ncbcapitalimpact.org: This organization is the community development subsidiary for the National Cooperative Bank ncb.coop. The National Cooperative Bank can be helpful with regard to establishing a credit union and in organizing the local farming community. The National Cooperative Bank was created by Congress to provide access to capital in underserved rural and urban communities nationwide. Experienced community development lenders with a specialty in USDA Rural Development Guaranteed Loans and Grants. Also, this bank has experience in SBA lending and loan. These banks was introduced to the U.S. Virgin Islands by the Regional Rural Development Office in Jacksonville, Florida who recognized the need for an experienced SBA & USDA Rural Development lender. Federal Resource The U.S. Virgin Islands has never maximized the very resources structured to assisted struggling communities in distress. Those of us who understood that their has been a paradigm shift in funding urban communities and community development since from the Reagan Administration throught Clinton and G.W. Bush that cabinet agencies like HUD, Commerce, & Education have been severely underfunded and no longer the agencies where deals are structured. The Clinton Administration created the Community Development Financial Institution Fund CDFI Fund and it is thought this agency that comprehensive community development grant equity and low cost debt is found. It is not suprising that in the 20 years of the CDFI Fund, the U.S. Virgin Islands has never received any award. CDFI Fund cdfifund.gov: The CDFI Fund has as its core mission providing access to capital to underserved communities as the country is subdivided into census tracts that are Qualified, Severely Distressed and not qualified. The overwhelming majority of St. Croix and most of St. Thomas is designated as eligible to receive funding from the CDFI Fund. Those resources are: Bond Guaranty Program (New): Provides in excess of $100 million in guaranteed bonds collateralized by the U.S. Treasury (Not the Legislature / People of the U.S. Virgin Islands) New Market Tax Credit Program: Makes available 30% of a deals costs in grant equity which is the incentive for the lender of the long term debt as the grant equity is very flexible and is often used to fund operating and interest reserves as well as subsidizing the costs directly. Overwhelmingly popular and successful funding resource. Bank Enterprise Award: $2 million - $10 million grant for commercial activity in eligible census tracts. Technical Assistance Grants: Up to $2 million for start-up Community Development Financial Institutions (CDFI’s). Federal Home Loan Bank of New York fhlbny/ The FHLB-NY is statutorily required to distribute a large portion of the banks earnings in to grants and community development lending. This is achieved by: 1. Affordable Housing Program (AHP) 2. Rural Lending Advance 3. Community Development Loan Facilties 4. Letters of Credit For the past 20 years of these funding resources being available to the U.S. Virgin Islands and every other Territory and States, we have not utilized or maximized within this territory? On Monday, June 30, 2014 during the Candidates Forum Meet & Greet segment (starting 4:30-5:30pm), both SEDI and OTF will be making the formal announcement. The public is invited to attend and participate in the during the Candidate Forum. Please contact Anthony Weeks at (914) 574-1213 with any questions and to confirm your attendance.
Posted on: Thu, 26 Jun 2014 17:29:08 +0000
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