April 7, 2022 (Dallas, TX/Arlington, VA) – A new program will help real estate developers from the Dallas area be more involved in the region’s booming real estate market — and, in turn, to create more affordable housing.
The EDI program is led by Capital Impact Partners and has trained nearly 200 developers since 2018 in three major metropolitan areas. The Dallas region will become the fourth.
The first cohort in Dallas will provide approximately 20 emerging real estate developers with assistance to help them grow their businesses.
“There are so many talented developers who are ready to work with local neighborhoods to create housing solutions that uplift and support communities,” said Ellis Carr, president and CEO of Capital Impact Partners and CDC Small Business Finance. “As we are doing in Detroit, the Washington metro area, and the San Francisco Bay Area, our EDI program will begin to build more community-rooted real estate development here in Dallas.”
The Dallas EDI program is supported by funding from JPMorgan Chase & Co. and Charles Schwab Bank.
Capital Impact Partners’ EDI program prepares emerging developers to pursue affordable housing projects and play a larger role in shaping Dallas’ development landscape.
They will receive broad-based training — in areas such as project budgeting, real estate finance, project and contractor management, legal services and community engagement — as well as local mentorship, network building, and pathways for them to access funding.
The initiative’s expansion into the Dallas area is also an expansion of Capital Impact’s existing investments across Texas. The Lone Star State was identified as an area where there’s an opportunity for spurring community and economic development investment based on identified needs in communities. To date, Capital Impact has invested more than $88 million in affordable housing, education, and more.
JPMorgan Chase & Co. is providing $500,000 in grant funding for the EDI program’s expansion into Dallas. Capital Impact also received a grant from Charles Schwab Bank in support of the Dallas EDI expansion.
The EDI program is modeled after the successful program that Capital Impact launched in Detroit in 2018. It expanded into the Washington metropolitan area in 2019 and into the San Francisco Bay Area in 2021. Many of the participants have since gone on to create their own organizations, build local developments, and foster peer-to-peer networks.
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About Capital Impact Partners
Capital Impact Partners, part of the Momentus Capital branded family of organizations, is transforming how capital and investments flow into communities to provide people with access to the capital and opportunities they deserve. As one of the nation’s leading mission-driven Community Development Financial Institutions (CDFIs), we help build strong communities and create generational wealth by deploying mission-driven financing, capacity-building programs, and impact investing opportunities.
Capital Impact Partners offers flexible financing for catalytic mission-aligned projects in four primary sectors: increasing access to health care, education, affordable housing, and healthy food.
In addition, we manage several multi-year initiatives in key regions to support emerging developers, small business owners, cooperatives, and community health enterprises through training, professional networks, access to experts and mentors, and pathways to grants and loan capital.
Capital Impact Partners has disbursed more than $3 billion since 1982 to create access to critical social services, grow entrepreneurs, and create quality jobs. Capital Impact Partners’ leadership in delivering financial and social impact has resulted in the organization being rated by S&P Global and Fitch Ratings and recognized by Aeris for its performance.
The Momentus Capital branded family of organizations refers to the combined operations of Capital Impact Partners and CDC Small Business Finance, as well as their affiliates, Momentus Direct Capital and Momentus Securities (an SEC-registered broker-dealer, MSRB-registered, FINRA/SIPC member). While each organization under the Momentus Capital brand still operates as a separate entity, their clients will now have access to more resources and products.
With headquarters in Arlington, Virginia, and San Diego, California, Momentus Capital operates nationally with a focus on larger urban areas and cities in Arizona, California, Georgia, Michigan, Nevada, New York, Texas, and the Washington D.C. metro area.
March 9, 2022 (Arlington, VA) – While Washington, DC has a vibrant food and restaurant community, food businesses still struggle to participate due to the lack of opportunities to access capital. In an effort to help, the Nourish DC Collaborative — in partnership with DC Mayor Muriel Bowser — announced its first round of grants, totaling $400,000 to support locally owned food businesses, especially in neighborhoods whose residents need greater access to grocery stores and other food businesses.
The grant awardees include:
A1 Grocery Store
Circle 7 Food and Grocery Market
Mechos Dominican Kitchen
Pinke’s Eats
Plum Good
Rich Capital Concepts (VeggieDC Farmers Market)
Three Part Harmony Farm
Turning Natural Juice Bar
Wellfound Foods
The Nourish DC Collaborative — created with the support of a $1 million grant from the Office of the Deputy Mayor for Planning and Economic Development (DMPED) — is intended to help grow a robust ecosystem of locally-owned food businesses across the District. Similarly, the program strives to promote economic opportunity, enabling locals to establish or grow their food-based businesses and create jobs for others in the community. This investment continues Mayor Bowser’s effort to improve food access, create new employment opportunities, and stimulate economic development in the District.
“Capital Impact Partners is thrilled to partner with the District of Columbia to provide these grants to locally owned food businesses,” said Ellis Carr, president and CEO of Capital Impact Partners and CDC Small Business Finance. “This is just the first step in what we hope will be a long partnership providing much-needed funding to support small businesses and access to healthy foods in Washington, DC.”
The awardees represent a wide array of food sectors and include a grocery store, a caterer, a food truck, a corner store, a restaurant, a farmers market, and a food processor.
Awards ranged from $10,000 to $50,000 per business. Applicants were required to have a physical location in DC, with preference given to businesses increasing access to healthy food and creating jobs in priority Wards 5, 7, and 8.
The grants were flexible in nature, allowing for the funds to be leveraged for a range of activities, including new product development, marketing, technology, real estate acquisition, construction, and tenant improvements.
More than 180 businesses applied for the first round of Nourish DC catalytic grants, and nine awardees were selected through a review process involving all of the Nourish DC Collaborative lending and technical assistance partners.
In addition to these nine grant awardees, Nourish DC has supported the disbursement of six loans and 88 businesses have received 1:1 or cohort-based technical assistance. For example, the Benning Market project is receiving a $15 million loan package from multiple lenders including Capital Impact Partners, with Nourish DC providing the gap financing to establish Market 7 as the project’s anchor tenant. Benning Market is a 24,000-square-foot neighborhood-serving commercial development project focused on food, health and entrepreneurship located in Ward 7. Market 7 will create an open concept retail community market space where local entrepreneurs can lease storefronts and kiosk spaces. Market 7 has been in business for four years as a pop-up food and retail market working with 60 small businesses. The permanent marketplace will feature local businesses, hire about 50 employees, and provide healthy food options and retail opportunities in Ward 7.
The Nourish DC Collaborative partners include Capital Impact Partners (CIP), lender and Collaborative administrator; Washington Area Community Investment Fund (WACIF), lender and technical assistance provider; Latino Economic Development Center (LEDC), lender and technical assistance provider; Dreaming Out Loud, technical assistance provider; and EatsPlace, lender and technical assistance provider. Together, the Collaborative provides flexible loans, technical assistance and catalytic grants to emerging and existing locally owned food businesses.
Nourish DC Grantees Reflect on their Awards
“The Nourish DC catalytic grant is the first grant of its kind that I have seen offered in DC during the 10 years that I have owned a vegetable farm in this city,” said Nourish DC awardee Gail Taylor from Three Part Harmony Farm. “Whoever wrote the grant description and eligibility information really took the time to understand how to make it possible for a production farm to take advantage of the opportunity.”
“The Nourish DC grant comes at a crucial moment where small businesses are struggling to deal with major price hikes, employee retention, and surging utility prices,” said Nourish DC awardee Raymond Compres from Mechos Dominican Kitchen. “These funds will help us to continue to keep our doors open by giving us the ability to buy provisions and to help keep our employees on payroll instead of sending them home or slashing their hours.”
Awardee Pinkey Reddick from Pinke’s Eats said, “the Nourish DC Catalytic Grant is important for our business because it will allow us to scale at a faster pace, provide efficiency in daily operations, and make funds available to us to purchase uniform packaging. The Nourish DC Catalytic Grant supports our business by providing financial resources to purchase equipment, invest in marketing, and invest in staff, which will create 8-10 full-time and 15-20 part-time positions by 2023.”
Overview of Round 1 Nourish DC Collaborative Grant Awardees:
Ayub, Inc. A1 Grocery Store ($50,000) is a full-service grocery store in Ward 7 that has been in business for more than 30 years and was purchased by its current owner in 2018. Grant funding will be used to upgrade the facility to improve customer experience and to purchase a new freezer, point of sale system, and other equipment, which will allow the store to improve sales and continue to expand healthy food inventory.
Circle 7 Food and Grocery Market ($50,000) is the only store selling a full-line of healthy food including fresh fruits and vegetables 24 hours a day in Ward 5. It has partnered with DC Central Kitchen and DC WIC to ensure it sells healthy food in the neighborhood and can accept WIC and SNAP. Grant funding will be used to purchase food refrigeration equipment to continue to expand fresh fruit and vegetable offerings, as well as to update store signage to promote the store’s healthy food offerings.
Mechos Dominican Kitchen at Dakota Crossing LLC ($10,000) is a caterer and fast casual restaurant in Ward 5, which opened in 2019 and serves traditional food from the Dominican Republic. Mechos also caters meals for local schools, churches, and institutions. Grant funding will be used to support the delivery of wholesome, catered meals to churches, food banks, and other food outreach programs.
Pinke’s Eats ($50,000) is a caterer and mobile food truck in Ward 7 committed to providing healthy food options to neighborhood residents, schools, churches, private sector businesses, institutions, and emergency food providers. Grant funding will be used to finance equipment, marketing support, an online ordering platform, and start-up food truck staffing.
Plum Good LLC ($50,000) is based in Ward 8 and sells packaged culinary and wellness teas, herbs, spices, jams, sauces, popcorn, and gourmet snacks to consumers and businesses locally and online. It also provides health and nutrition certified training services. Plum Good will share a new commercial kitchen to begin packaging products, and the Grant funding will be used to purchase processing equipment and the technical assistance to successfully use the equipment.
Rich Capital Concepts (VeggieDC Farmers Market)($50,000) is a 501(c)(3) in Ward 5 specializing in youth development, social service, and green projects. It has a community farmers’ market business called VeggieDC Farmers Market providing fresh fruits and vegetables to neighborhoods often lacking healthy food options. Grant funding will support the COVID-19 pivot from a farmers’ market to a mobile delivery service which has increased healthy food access in Wards 7 and 8. The funding will be used to finance a delivery van, additional inventory, refrigerators, food processing tables, and additional staff.
Three Part Harmony Farm LLC ($50,000) was established in Ward 5 in 2012 and is the largest urban farm in the District, primarily growing vegetables sold to local families. In 2021, Three Part Harmony Farm sold produce to 100 families within a few miles of the farm through community-supported agriculture (CSA) sales. The farm also grows and sells vegetable and flower seedlings. Grant funding will be used to purchase two hoop houses to extend the growing season, a walk-in cooler, and additional staff to support increased harvests.
Turning Natural Juice Bar ($50,000) has served healthy food options in Ward 8 since 2015. The food offerings include cold-pressed fruit/vegetable juice and smoothies as well as vegan and vegetarian food. Grant funding will be used to expand its mobile app, delivery options, and the marketing team, and to purchase menu expansion inventory and equipment.
Wellfound Foods ($40,000) makes grab-and-go prepared food for health-conscious people. The food is delivered via wholesale distribution to retailers and direct-to-consumer distribution through Wellfound’s network of 24-hour, tech-enabled, unattended, SmartMarkets kiosks located in a 35-mile radius of the commissary kitchen in Ward 5. Grant funding will be used to build out the in-house, cold-chain distribution capabilities by purchasing a refrigerated van and adding staff so the company is not as reliant on a third-party distributor. The grant will also allow a pilot program with the Capital Area Food Bank to bring SmartMarkets to Wards 5, 7, and 8 in the next two years.
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About Capital Impact Partners
Capital Impact Partners, part of the Momentus Capital branded family of organizations, is transforming how capital and investments flow into communities to provide people with access to the capital and opportunities they deserve. As one of the nation’s leading mission-driven Community Development Financial Institutions (CDFIs), we help build strong communities and create generational wealth by deploying mission-driven financing, capacity-building programs, and impact investing opportunities.
Capital Impact Partners offers flexible financing for catalytic mission-aligned projects in four primary sectors: increasing access to health care, education, affordable housing, and healthy food.
In addition, we manage several multi-year initiatives in key regions to support emerging developers, small business owners, cooperatives, and community health enterprises through training, professional networks, access to experts and mentors, and pathways to grants and loan capital.
Capital Impact Partners has disbursed more than $3 billion since 1982 to create access to critical social services, grow entrepreneurs, and create quality jobs. Capital Impact Partners’ leadership in delivering financial and social impact has resulted in the organization being rated by S&P Global and Fitch Ratings and recognized by Aeris for its performance.
The Momentus Capital branded family of organizations refers to the combined operations of Capital Impact Partners and CDC Small Business Finance, as well as their affiliates, Momentus Direct Capital and Momentus Securities (an SEC-registered broker-dealer, MSRB-registered, FINRA/SIPC member). While each organization under the Momentus Capital brand still operates as a separate entity, their clients will now have access to more resources and products.
With headquarters in Arlington, Virginia, and San Diego, California, Momentus Capital operates nationally with a focus on larger urban areas and cities in Arizona, California, Georgia, Michigan, Nevada, New York, Texas, and the Washington D.C. metro area.
December 8, 2021 (Arlington, VA) – Capital Impact Partners today announced a grant of more than $5 million from Amazon to launch an initiative focused on accelerating new opportunities for emerging real estate developers while also increasing affordable and workforce housing across Arlington, Virginia and the greater Washington, D.C. metropolitan region. This funding is the most recent commitment from the more than $2 billion Amazon Housing Fund, which was established to preserve and create over 20,000 affordable homes in Amazon’s hometown communities — the Puget Sound region of Washington state, the Arlington, Virginia region, and Nashville, Tennessee.
Through this grant from Amazon, Capital Impact has created the Housing Accelerator Fellowship, a two-year, part-time professional development accelerator program, for a cohort of real estate developers with practical experience in the field and a focus on affordable housing development. The program, which is free for participants, provides:
Real estate training with a focus on affordable housing production in the Washington Metropolitan area
Small group mentorship
Access to grant capital for pre-development expenses, such as architectural and engineering costs; permitting, survey, and site-planning fees; and market and feasibility studies. These funds are often the hardest and most expensive to raise for developers.
“Local developers bring enormous opportunity for ideas and creativity to community-focused real estate development, but the barrier to entry is often very high for these individuals,” said Ellis Carr, president and CEO of Capital Impact Partners and CDC Small Business Finance. “We are excited about the support from Amazon to create this fellowship and work to bridge those gaps and foster opportunity for developers.”
According to a 2019 study from the Urban Institute, the Washington, D.C. region requires an additional 375,000 housing units by 2030 to meet growing demand. To address this housing shortfall, coordination across government agencies and a diversity of key stakeholders is essential. The Housing Accelerator Fellowship will work with local developers to not only improve their skill sets but also begin to help address this important need for affordable housing.
The program further amplifies the ability of these developers to bring their ideas, perspectives, and local partnerships to work being done in the region. As members of their communities, the Fellows will engage with and listen to the community’s concerns and through their work provide greater access to employment and opportunity for residents.
“With this accelerator program, we are laser-focused on lifting up emerging real estate developers. We want to foster their professional growth through education and training, as well as improve their access to capital, which can be elusive,” said Catherine Buell, director of the Amazon Housing Fund. “If we are going to bring about lasting, holistic, and meaningful change to how affordable housing is developed, community-centric developers need to be a part of the solution.”
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About Capital Impact Partners
Capital Impact Partners, part of the Momentus Capital branded family of organizations, is transforming how capital and investments flow into communities to provide people with access to the capital and opportunities they deserve. As one of the nation’s leading mission-driven Community Development Financial Institutions (CDFIs), we help build strong communities and create generational wealth by deploying mission-driven financing, capacity-building programs, and impact investing opportunities.
Capital Impact Partners offers flexible financing for catalytic mission-aligned projects in four primary sectors: increasing access to health care, education, affordable housing, and healthy food.
In addition, we manage several multi-year initiatives in key regions to support emerging developers, small business owners, cooperatives, and community health enterprises through training, professional networks, access to experts and mentors, and pathways to grants and loan capital.
Capital Impact Partners has disbursed more than $3 billion since 1982 to create access to critical social services, grow entrepreneurs, and create quality jobs. Capital Impact Partners’ leadership in delivering financial and social impact has resulted in the organization being rated by S&P Global and Fitch Ratings and recognized by Aeris for its performance.
The Momentus Capital branded family of organizations refers to the combined operations of Capital Impact Partners and CDC Small Business Finance, as well as their affiliates, Momentus Direct Capital and Momentus Securities (an SEC-registered broker-dealer, MSRB-registered, FINRA/SIPC member). While each organization under the Momentus Capital brand still operates as a separate entity, their clients will now have access to more resources and products.
With headquarters in Arlington, Virginia, and San Diego, California, Momentus Capital operates nationally with a focus on larger urban areas and cities in Arizona, California, Georgia, Michigan, Nevada, New York, Texas, and the Washington D.C. metro area.
Amazon is guided by four principles: customer obsession rather than competitor focus, passion for invention, commitment to operational excellence, and long-term thinking. Amazon strives to be Earth’s Most Customer-Centric Company, Earth’s Best Employer, and Earth’s Safest Place to Work. Customer reviews, 1-Click shopping, personalized recommendations, Prime, Fulfillment by Amazon, AWS, Kindle Direct Publishing, Kindle, Career Choice, Fire tablets, Fire TV, Amazon Echo, Alexa, Just Walk Out technology, Amazon Studios, and The Climate Pledge are some of the things pioneered by Amazon. For more information, visit aboutamazon.com.
November 30, 2021 (Arlington, VA, San Francisco, CA, San Diego, CA) – Capital Impact Partners and CDC Small Business Finance announced a $1.5 million grant from Wells Fargo to launch an initiative focused on providing targeted business training services to small real estate developers and entrepreneurs. The grant will also help accelerate re-development efforts in D.C. and the Delta through a focus on small real estate development businesses and other industries that bring needed housing, amenities and jobs. The funding is made possible through Wells Fargo’s Open for Business Fund, a roughly $420 million small business recovery effort across the U.S to help small business owners recover and emerge from the pandemic even stronger and more resilient.
Led by Capital Impact, the initiative will provide technical assistance (TA) to small businesses in Washington, D.C. and the Mississippi Delta in collaboration with CDC Small Business Finance, City First Enterprises, Hope Enterprises, and the Washington Area Community Investment Fund (Wacif). The collaborative will serve a variety of sectors including social services, professional services, and food retail and distribution, and will also support real estate developers, with a focus on graduates of Capital Impact Partners’ EDI program.
“We are thrilled to have the leadership and support of Wells Fargo and their Open for Business program as we work with these incredible entrepreneurs to surface the solutions they need to help their communities thrive,” said Ellis Carr, president and CEO of Capital Impact Partners and CDC Small Business Finance.
“The Open for Business Fund enlists the care and expertise of organizations like Capital Impact Partners to urgently assist the small business community and to help navigate entrepreneurs back to growth,” said Anna Bard, Senior Vice President, Social Impact and Sustainability at Wells Fargo. “Small business owners inspire us with their resilience. It is incumbent on all of us to help enable an economic recovery for these entrepreneurs and the neighborhoods they support.”
The support from Wells Fargo’s Open for Business program is a key investment. For small businesses facing financial hardships and other business challenges, having access to trusted experts to help grow their businesses and realize locally led solutions is critical to getting back to growth.
While Capital Impact Partners will manage the overall program, CDC Small Business Finance will deliver TA and create specialized curriculum for Washington, D.C. metropolitan area participants and alumni of Capital Impact Partners’ EDI program.
They will also lead knowledge sharing with City First Enterprises, Hope Enterprises, and Wacif, for entrepreneurs in the Washington, D.C. Metropolitan region as well as the Mississippi Delta on the following initiatives:
City First Enterprise will launch a formal small business TA program including hiring two business advisors. Training will include modules such as credit repair that will help small businesses recover from the impacts of the economic crisis.
Hope Community Enterprises will scale and improve efficiencies to their SBA lending with a focus on using the Community Advantage Program to serve entrepreneurs in the rural Deep South.
Wacif will provide legacy businesses interested in employee ownership with technical assistance including individualized growth plans, technology, marketing, and financing.
In turn, CDC will learn more about how to utilize their deep community experience of each of these organizations to support the tailored needs of entrepreneurs in these geographic regions.
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About Capital Impact Partners
Capital Impact Partners, part of the Momentus Capital branded family of organizations, is transforming how capital and investments flow into communities to provide people with access to the capital and opportunities they deserve. As one of the nation’s leading mission-driven Community Development Financial Institutions (CDFIs), we help build strong communities and create generational wealth by deploying mission-driven financing, capacity-building programs, and impact investing opportunities.
Capital Impact Partners offers flexible financing for catalytic mission-aligned projects in four primary sectors: increasing access to health care, education, affordable housing, and healthy food.
In addition, we manage several multi-year initiatives in key regions to support emerging developers, small business owners, cooperatives, and community health enterprises through training, professional networks, access to experts and mentors, and pathways to grants and loan capital.
Capital Impact Partners has disbursed more than $3 billion since 1982 to create access to critical social services, grow entrepreneurs, and create quality jobs. Capital Impact Partners’ leadership in delivering financial and social impact has resulted in the organization being rated by S&P Global and Fitch Ratings and recognized by Aeris for its performance.
The Momentus Capital branded family of organizations refers to the combined operations of Capital Impact Partners and CDC Small Business Finance, as well as their affiliates, Momentus Direct Capital and Momentus Securities (an SEC-registered broker-dealer, MSRB-registered, FINRA/SIPC member). While each organization under the Momentus Capital brand still operates as a separate entity, their clients will now have access to more resources and products.
With headquarters in Arlington, Virginia, and San Diego, California, Momentus Capital operates nationally with a focus on larger urban areas and cities in Arizona, California, Georgia, Michigan, Nevada, New York, Texas, and the Washington D.C. metro area.
Wells Fargo & Company (NYSE: WFC) is a leading financial services company that has approximately $1.9 trillion in assets, proudly serves one in three U.S. households and more than 10% of small businesses in the U.S., and is the leading middle market banking provider in the U.S. We provide a diversified set of banking, investment and mortgage products and services, as well as consumer and commercial finance, through our four reportable operating segments: Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, and Wealth & Investment Management. Wells Fargo ranked No. 37 on Fortune’s 2021 rankings of America’s largest corporations. In the communities we serve, the company focuses its social impact on building a sustainable, inclusive future for all by supporting housing affordability, small business growth, financial health, and a low-carbon economy. News, insights, and perspectives from Wells Fargo are also available at Wells Fargo Stories.
October 21, 2021 (Detroit, MI/Arlington, VA) – Capital Impact Partners, a mission-driven Community Development Financial Institution (CDFI), is celebrating 10 years of working with Detroit and $300 million in investments in economic development in the region.
These investments include affordable, mixed-use housing projects, high-quality health care, education, and healthy food efforts as well as community development enterprises. Through these efforts Capital Impact Partners has:
Served more than 4,000 Detroiters — of whom 31% are living with low-to-moderate incomes.
Financed the creation of nearly 2,000 homes in Detroit to support increased density and affordability. Nearly 800 of these homes are maintained for individuals and families earning low incomes.
Supported Detroit’s next generation of leaders by serving more than 2,000 students, of whom 731 live in households earning low-to-moderate-incomes. Students supported have achieved a 100% graduation and post-high school attendance rate.
Capital Impact Partners came to Detroit at the invitation of the Kresge Foundation as part of the Living Cities Integration Initiative. Capital Impact Partners was the only national lender joining with a broad array of local partners, including the City of Detroit, Invest Detroit, Midtown Detroit Inc., Skillman Foundation and Vanguard Community Development Corporation. In the wake of the Great Recession and massive population decline, the goal was to drive reinvestment along the Woodward Corridor and generate benefits for area residents.
Now, with an office in the heart of Detroit and a local team of 11, Capital Impact Partners continues to manage a broad array of financing efforts and programs that support growth and generational wealth building.
“In the beginning, Detroit chose us due to our national expertise in driving financing into neighborhoods. Over the past decade, we have learned as much from Detroit as we have contributed,” said Elllis Carr, President and CEO of Capital Impact Partners and CDC Small Business Finance. “Working closely with Detroiters, local nonprofits, CDFIs, government agencies and investors has taught us what it truly means to stand shoulder-to-shoulder with the community to create trust and uplift their solutions. We’ve learned what it means to invest in people and address barriers to success.”
Capital Impact Partners’ strategy evolved as a result of its experience in Detroit to create a holistic approach that involves financing affordable, mixed-use housing projects, providing capacity building to emerging developers and creating tailored loan products for those individuals and partnering with local organizations, supporting small business entrepreneurs and engaging with government agencies.
“Capital Impact has been in a leadership position in the city for a while because of their very early success and their willingness to plant a flag here and be very committed to the work in the city in a very city-based context as opposed to being a delivery mechanism for sort of like national tools,” said Aaron Seybert, managing director of the Social Investment Practice at The Kresge Foundation.
Below are a few highlights of Capital Impact’s work over the last decade.
Mission-Driven Financing that Supports Inclusive Growth
The Auburn
The Auburn represented Capital Impact’s first catalytic, mixed-used development as part of the Living Cities Integration Initiative to encourage revitalization of the Woodward Corridor. This new construction 56,000 square-foot facility on the corner of Cass Avenue and Canfield Street in the heart of Midtown Detroit is just one block from the (then proposed) M-1 rail line and just a few blocks from area anchor institutions including Wayne State University, the Detroit Institute of Arts and the Detroit Medical Center.
It includes space for 11 businesses, such as the iconic Source Booksellers. Twenty percent of the residential space was reserved to ensure affordability for local residents. Project partners included Invest Detroit, Midtown Detroit Inc., and the Roxbury Group.
Argonaut Building | A. Alfred Taubman Center for Design Education
Built in 1928, the 12-story Art Deco-style building known as the Argonaut in Detroit’s New Center has had several lives, including General Motors’ Research Lab. After sitting dark for 10 years, Capital Impact provided New Markets Tax Credit financing in support of a larger $145 million renovation.
Rechristened as the A. Alfred Taubman Center for Design Education, it now houses the College for Creative Studies, a leading institution for art and design education; University Prep Art & Design, a charter middle school and high school with design-focused curricula; and Shinola’s Detroit manufacturing operation. The transformation has been hailed as one of the most important downtown redevelopment projects in Detroit’s New Center neighborhood.
The Coe
As part of its then $100 million commitment to Detroit, JPMorgan Chase supported Capital Impact Partners’ Detroit Neighborhoods Fund. The goal of this effort was to work across a variety of Detroit neighborhoods to return vacant properties to productive use, underwrite “missing middle” projects that fill gaps in the neighborhood fabric, increase access to neighborhood retail and provide housing for residents across the income spectrum.
The Coe represented a significant project for Capital Impact’s strategy to support smaller-scale projects embedded in neighborhoods. The once vacant lot was turned into a 12-unit, mixed-use development with both retail and affordable homes. Located directly between the Kercheval and Agnes Street commercial areas, the Coe supports a larger vision to revitalize the West Village into a mixed-use, mixed-income, walkable neighborhood.
The project was led by Woodburn Partners’ Clifford Brown, a developer with strong relationships throughout Detroit. Brown also played a key role as a mentor in Capital Impact’s EDI program for real estate developers.
Invest Detroit, Broder & Sachse Real Estate and Sachse Construction also served as key partners.
“As part of JP Morgan Chase’s Detroit initiative, we committed $40 million in flexible, long-term capital, and $10 million in grants to two leading nonprofit CDFIs; one of those being Capital Impact Partners. Capital Impact was already a longstanding client and partner and had the local market presence and know-how, along with the critical community based financing expertise and products to bring more flexible development financing for affordable housing and mixed use projects in Detroit like the Coe and other projects financing through their Detroit Neighborhoods Fund,” said Michael Rhodes, Vice President of Equity Capital Markets for JPMorgan Chase.
The Weinberg Green Houses® At Thome Rivertown Neighborhood
A first of its kind, The Weinberg Green Houses® At Thome Rivertown Neighborhood provides integrated care in a community setting. This innovative project created a national model by offering integrated service delivery including: Program for the All-Inclusive Care of the Elderly (PACE), expansion location for The Center for Senior Independence (CSI); affordable assisted living (AAL) apartments with home health services; affordable senior independent living apartments; and Green House® permanent supportive housing with 20 nursing care professionals.
Capital Impact’s financing helped to complete the final phase of the project, which serves a number of seniors living with low-incomes and those eligible for Medicare. This first-of-its-kind partnership between PACE and a Green House® operator expects to save approximately $130,000 a year over institutional nursing care.
Located along the Detroit River just east of Detroit, Thome Rivertown residents are able to live in a vibrant area close to shopping and restaurants.
This unique project included a variety of community partners, including Community Foundation of Southeast Michigan’s Detroit Neighborhood Fund, Detroit Housing Commission, Detroit Area Agency on Aging, City of Detroit, Wayne County, The Kresge Foundation and The Harry and Jeanette Weinberg Foundation.
Northern Initiatives
Direct financing of projects that support equitable access to critical social services is a key strategy of Capital Impact. Through its participation in the Michigan Good Food Fund, Capital Impact also invests directly in intermediary lenders who help amplify support for healthy food systems and enterprises across Michigan.
One key example of this strategy was an investment in Northern Initiatives to administer loans less than $250,000 to grocery stores, food growers and entrepreneurs. In addition, Northern Initiatives used the investment to increase its technical assistance capabilities. As part of Capital Impact Partners’ support, Northern Initiatives has made a number of high impact loans to small businesses run by individuals of color, including Placita Olvera – Supermercado Mexico, Forty Acres and Abeshi Ghanian Culture.
The Michigan Good Food Fund core partners include Fair Food Network, Michigan State University Center for Regional Food Systems and the W.K. Kellogg Foundation.
Programs Driving Opportunity in Detroit
EDI Program
In 2017, Capital Impact Partners conducted an analysis that revealed much of their lending, while achieving positive outcomes, was not serving local, community-centric real estate developers. Capital Impact Partners recognized the need to develop solutions to see the kind of developer level outcomes it had hoped to achieve.
With local guidance, the EDI program was created to provide emerging developers with training, mentorship and connections to secure financing. Since inception, the EDI program has trained 86 developers, many who have gone on to create their own organizations, build local projects and develop peer-to-peer networking circles.
JPMorgan Chase was an instrumental financing partner to help build the program.
“In addition to creating ‘developers,’ Capital Impact’s EDI program has created people who are more knowledgeable within the real estate space,” said Cliff Brown, a managing partner at Woodborn Partners and mentor in the EDI program. “The program has taught them how real estate development works, how capital works, how equity works and how wealth works. The EDI program has brought different voices to the table.”
“Capital Impact’s focus on helping us is actually paying off because you’re seeing a lot of the participants from that program being a part of these newer developments that are happening across the city,” said Edward Carrington, founder of Flux City and EDI cohort graduate.
Detroit Loan Fund
With feedback from EDI participants who still felt there was a barrier to accessing capital due to stringent underwriting standards, Capital Impact developed the Detroit Loan Fund. This initiative is designed to increase access to flexible and low-cost construction financing for real estate developers spearheading multifamily and mixed-use projects throughout Detroit. Nearly $100 million in applications were received with announcements forthcoming by Capital Impact on projects it intends to support.
Michigan Good Food Fund
Capital Impact Partners is one of the founding members of the Michigan Good Food Fund, a statewide loan fund that invests in good food enterprises working to increase access to healthy food and spark economic opportunity in places that need it most.
Since inception, this initiative has provided more than $17 million in loans and grants supporting over 300 Michigan-based food businesses that grow, process, distribute and sell healthy food.
Some of the businesses the Michigan Good Food Fund have supported include Torti Taco, North Flint Food Market, Zilke Vegetable Farm and Country Style Marketplace. Key partners include the Fair Food Network, Michigan State University Center for Regional Food Systems and the W.K. Kellogg Foundation.
Stay Midtown
Capital Impact Partners joined with Midtown Detroit, Inc. in to launch Stay Midtown, an initiative designed to address the housing supply gap for long-term residents living in Detroit’s rapidly redeveloping Midtown neighborhood. The objective of Stay Midtown was to help Detroit residents maintain housing security during this period of high demand and limited supply, which was anticipated to lessen given increases in affordable housing options across all income levels.
The program provided up to $1,500 annually in rental assistance for three years to help reduce housing cost burdens and help reach targeted levels of housing affordability for that area of the city. An evaluation of the program found that it provided rental assistance to 152 households and supported an additional four households with relocation services. Stay Midtown helped participants reduce their average housing costs from 42% of household income to 37%. Twenty-two percent were able to reduce their housing costs to 30% of their household income.
Restore North End
With support from Capital Impact Partners and The Kresge Foundation, Vanguard Community Development Corporation and Michigan Lending Solutions launched the Restore North End: Owner-Occupied Home Rehab Program. The goal was to offer financial assistance to homeowners in Detroit’s North End neighborhood to repair and rehabilitate their residences with the main purpose of eliminating blighted conditions by increasing the attractiveness, marketability and viability of the neighborhood’s most stable residential blocks.
A Powerful New Enterprise for Communities and Small Business
Most recently, Capital Impact Partners launched a new enterprise with CDC Small Business Finance, the nation’s leading mission-based small business lender to innovate how capital and investments flow into communities. This new enterprise expands Capital Impact’s traditional offerings to include support for small businesses to develop and implement high-touch, scalable solutions that support economic empowerment and wealth creation. Detroit is one of three place-based pilot locations where the organization will actively engage with community members to understand regional barriers to opportunity and work together to create tools, programs, and services that are strategically customized to address those high-priority issues.
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About Capital Impact Partners
Capital Impact Partners, part of the Momentus Capital branded family of organizations, is transforming how capital and investments flow into communities to provide people with access to the capital and opportunities they deserve. As one of the nation’s leading mission-driven Community Development Financial Institutions (CDFIs), we help build strong communities and create generational wealth by deploying mission-driven financing, capacity-building programs, and impact investing opportunities.
Capital Impact Partners offers flexible financing for catalytic mission-aligned projects in four primary sectors: increasing access to health care, education, affordable housing, and healthy food.
In addition, we manage several multi-year initiatives in key regions to support emerging developers, small business owners, cooperatives, and community health enterprises through training, professional networks, access to experts and mentors, and pathways to grants and loan capital.
Capital Impact Partners has disbursed more than $3 billion since 1982 to create access to critical social services, grow entrepreneurs, and create quality jobs. Capital Impact Partners’ leadership in delivering financial and social impact has resulted in the organization being rated by S&P Global and Fitch Ratings and recognized by Aeris for its performance.
The Momentus Capital branded family of organizations refers to the combined operations of Capital Impact Partners and CDC Small Business Finance, as well as their affiliates, Momentus Direct Capital and Momentus Securities (an SEC-registered broker-dealer, MSRB-registered, FINRA/SIPC member). While each organization under the Momentus Capital brand still operates as a separate entity, their clients will now have access to more resources and products.
With headquarters in Arlington, Virginia, and San Diego, California, Momentus Capital operates nationally with a focus on larger urban areas and cities in Arizona, California, Georgia, Michigan, Nevada, New York, Texas, and the Washington D.C. metro area.
September 29, 2021 – (Arlington, VA) – In the wake of the COVID-19 pandemic, cooperatives have demonstrated their continued ability to promote resiliency and growth toward shared prosperity for communities.
The seventh annual Capital Impact Partners Co-op Innovation Award — which aims to increase co-op development in communities with low incomes — focused on supporting organizations that are expanding education about the cooperative model.
In partnership with The National Cooperative Bank, the 2021 awardees are Cooperation Humboldt ($20,000), Custom Collaborative ($25,000), Collective Remake ($25,000), Co-op Dayton ($25,000), and Co-op Cincy ($35,000). The awardees received a total of $130,000.
“Our Co-op Innovation Award has been going strong for seven years, supporting emerging co-op developers to build community prosperity in communities across the country,” said Ellis Carr, president and CEO of Capital Impact Partners and CDC Small Business Finance. “Co-ops provide a clear path to sovereignty and wealth building. Our partnership with The National Cooperative Bank and others continues to be a powerful tool to achieve this goal.”
“National Cooperative Bank is proud to once again work with Capital Impact Partners to award these deserving organizations with the Co-op Innovation Award” stated Charles Snyder, CEO of NCB. “Each organization is deeply rooted in their community and will enhance the cooperative model to increase community ownership. We look forward to seeing the impact of their work in the years to come.”
This year’s Co-op Innovation Award focused on utilizing the co-op model to develop new programs or strategies to address the impact of the economic crisis. Priority was given to food, worker, and housing cooperatives, but all sectors were invited to apply.
Since Capital Impact Partners started the Co-op Innovation Award in 2015, more than $515,000 in grants have been given to 17 organizations to innovative cooperative organizations nationwide. Those funds have been leveraged for more than $6.3 million to start emerging and support existing co-ops.
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About Capital Impact Partners
Capital Impact Partners, part of the Momentus Capital branded family of organizations, is transforming how capital and investments flow into communities to provide people with access to the capital and opportunities they deserve. As one of the nation’s leading mission-driven Community Development Financial Institutions (CDFIs), we help build strong communities and create generational wealth by deploying mission-driven financing, capacity-building programs, and impact investing opportunities.
Capital Impact Partners offers flexible financing for catalytic mission-aligned projects in four primary sectors: increasing access to health care, education, affordable housing, and healthy food.
In addition, we manage several multi-year initiatives in key regions to support emerging developers, small business owners, cooperatives, and community health enterprises through training, professional networks, access to experts and mentors, and pathways to grants and loan capital.
Capital Impact Partners has disbursed more than $3 billion since 1982 to create access to critical social services, grow entrepreneurs, and create quality jobs. Capital Impact Partners’ leadership in delivering financial and social impact has resulted in the organization being rated by S&P Global and Fitch Ratings and recognized by Aeris for its performance.
The Momentus Capital branded family of organizations refers to the combined operations of Capital Impact Partners and CDC Small Business Finance, as well as their affiliates, Momentus Direct Capital and Momentus Securities (an SEC-registered broker-dealer, MSRB-registered, FINRA/SIPC member). While each organization under the Momentus Capital brand still operates as a separate entity, their clients will now have access to more resources and products.
With headquarters in Arlington, Virginia, and San Diego, California, Momentus Capital operates nationally with a focus on larger urban areas and cities in Arizona, California, Georgia, Michigan, Nevada, New York, Texas, and the Washington D.C. metro area.
National Cooperative Bank is dedicated to strengthening communities nationwide through the delivery of banking and financial services, complemented by a special focus on cooperative expansion and economic development. NCB provides financial products and services for the nation’s cooperatives, their members, and socially responsible organizations. Headquartered in Washington, DC, the Bank has offices in Alaska, California, New York, Ohio and Virginia. To learn more, visit www.ncb.coop, National Cooperative Bank on Facebook and Instagram, or on Twitter @natlcoopbank.
September 22, 2021 (Oakland, CA/Arlington, VA) – There is a critical need to address the San Francisco Bay Area’s housing crisis in a market dominated by large global and national firms. In an effort to help solve this crisis, Capital Impact Partners announced the expansion of its EDI program into the region to help local, community-centric real estate developers take a leadership role in shaping the development landscape within the local context. These developers often face significant barriers to entering the real estate industry.
The program’s first cohort will provide approximately 20 emerging real estate developers with training, mentorship, and network building, as well as pathways to access the capital necessary to grow their businesses. This initiative is modeled after the successful program that Capital Impact launched in Detroit in 2018, and expanded into the Washington Metro area in 2019. Those two programs have trained 86 developers, many of whom have gone on to create their own organizations, build local developments, and foster peer-to-peer networks.
Tailored to the needs of local communities and markets, the program is designed to prepare emerging developers to pursue multifamily housing developments that are affordable to long-standing residents across Alameda, Contra Costa, Marin, Napa, Santa Clara, San Francisco, San Mateo, Solano, and Sonoma counties.
Participants will receive broad-based training, including project budgeting, real estate finance, project and contractor management, legal services, and community engagement, as well as local mentorship. In addition, Capital Impact is working to develop a loan product tailored to cohort graduates based on a loan product rolled out in Detroit and the Washington Metropolitan area.
“There is an incredible talent pool of developers who are well positioned to work with communities to create housing solutions that maintain affordability,” said Ellis Carr, president and CEO of Capital Impact Partners and CDC Small Business Finance. “Helping these developers access capital, training, and networks will help them achieve their potential l. As we are doing in Detroit and the Washington Metro area, our EDI program will begin to build a community-centric real estate development ecosystem here in the Bay Area.”
Reflections from an EDI Graduate
Thomas Houston and Talayah Jackson, graduates of the 2019 EDI cohort in the D.C. area, went on to work with Capital Impact on the acquisition and development of a vacant lot in Washington, D.C.’s Ward 7. With nearly $1 million in financing through Capital Impact, they are working to develop a 17,000-square-foot building with affordable housing, retail, and office space.
“It is extremely important for programs like Capital Impact’s EDI program to exist. Are there universities that offer similar courses? Absolutely. But who can afford a $10,000 certificate course? When you look at networks, I didn’t know any developers. I didn’t know anybody who had a $20 million, 10-unit portfolio. And so there is nobody to teach me about development. I absolutely think programs like EDI will assist future developers in thinking differently about development,” said Houston.
A History of Supporting High-Impact Projects Throughout the Bay Area
Capital Impact opened its first regional office in Oakland in 1992. With more than $240 million in financing supporting 95 projects, the organization has become a mission-driven leader in increasing access to critical social services in communities and spurring economic development and wealth creation. This includes working with local partners focused on health care, education, healthy foods, affordable housing, and the ability for seniors to age in their communities with dignity.
One effort includes Capital Impact’s role in the Partnership for the Bay’s Future, a $500 million initiative launched by the Chan Zuckerberg Initiative, along with the San Francisco Foundation, Facebook, Ford Foundation, and LISC to address critical housing needs across the Bay Area.
As part of this effort, Capital Impact helps manage the Bay’s Future Fund and Community Housing Fund program. These unique funds provide flexible, nimble, and creative approaches that support affordable housing financing solutions. Both Funds are open to Non-Profit Housing Developers, mission-aligned For-Profit developers, or service providers partnered with either that operate in in San Francisco, San Mateo, Santa Clara, Alameda, and Contra Costa counties.
One recent example of our regional lending includes nearly $5 million in financing to Allied Housing, Inc.. This financing is helping Allied Housing build a project in the City of Hayward to provide 125 units of affordable supportive housing. Our support helped to significantly increase their impact from the original plan of 46 units after a successful rezoning.
In another deal, Capital Impact provided a $1.3 million acquisition loan to HIP Housing to finance the $3.3 million purchase of a fully occupied, 10-unit apartment property in Redwood City. This project helps maintain affordability in a neighborhood where rent is more than twice the national median due to the proximity of local tech companies.
Capital Impact is also the largest nonprofit lender to Federally Qualified Health Centers across California. This includes several transactions with La Clínica de La Raza, a pillar of the community providing much needed medical care to residents since it opened in 1971. Under the leadership of Jane Garcia, who took the helm as CEO in 1982, La Clínica has grown from just four sites in Oakland to serving more than 91,000 patients at more than 35 locations in three Bay Area counties under a $120 million budget, and it continues to grow. Its residency programs with top medical and dental institutions like University of California, San Francisco; the University of California, San Francisco; UOP; and the University of California, Berkeley are training the future workforce, while giving La Clínica patients access to specialty care.
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About Capital Impact Partners
Capital Impact Partners, part of the Momentus Capital branded family of organizations, is transforming how capital and investments flow into communities to provide people with access to the capital and opportunities they deserve. As one of the nation’s leading mission-driven Community Development Financial Institutions (CDFIs), we help build strong communities and create generational wealth by deploying mission-driven financing, capacity-building programs, and impact investing opportunities.
Capital Impact Partners offers flexible financing for catalytic mission-aligned projects in four primary sectors: increasing access to health care, education, affordable housing, and healthy food.
In addition, we manage several multi-year initiatives in key regions to support emerging developers, small business owners, cooperatives, and community health enterprises through training, professional networks, access to experts and mentors, and pathways to grants and loan capital.
Capital Impact Partners has disbursed more than $3 billion since 1982 to create access to critical social services, grow entrepreneurs, and create quality jobs. Capital Impact Partners’ leadership in delivering financial and social impact has resulted in the organization being rated by S&P Global and Fitch Ratings and recognized by Aeris for its performance.
The Momentus Capital branded family of organizations refers to the combined operations of Capital Impact Partners and CDC Small Business Finance, as well as their affiliates, Momentus Direct Capital and Momentus Securities (an SEC-registered broker-dealer, MSRB-registered, FINRA/SIPC member). While each organization under the Momentus Capital brand still operates as a separate entity, their clients will now have access to more resources and products.
With headquarters in Arlington, Virginia, and San Diego, California, Momentus Capital operates nationally with a focus on larger urban areas and cities in Arizona, California, Georgia, Michigan, Nevada, New York, Texas, and the Washington D.C. metro area.
September 1, 2021 (Arlington, VA) — The U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) has awarded Capital Impact Partners a $60 million New Markets Tax Credit (NMTC) allocation. This award helps advance Capital Impact’s mission to increase access to critical social services in communities, spur economic development and wealth creation, and create jobs by incentivizing private sector investors to partner in its community financing efforts.
“The New Markets Tax Credit program allows us to serve as a conduit for capital between government agencies and private investors, to help communities,” said Ellis Carr, president and chief executive officer of Capital Impact Partners and CDC Small Business Finance. “We are grateful for the trust that the CDFI Fund has in our ability to work with communities to uplift their needs and solutions.”
Capital Impact Partners is now a 10-time NMTC recipient — with those awards totaling more than $687 million. To date, the organization has used NMTC allocations to support the financing of more than 78 transactions nationally that have increased access to health care, education, healthy foods, affordable housing, and the ability for seniors to age in their communities with dignity.
“Building communities requires investment from a broad spectrum of organizations,” said Diane Borradaile, chief lending officer of Capital Impact Partners. “The New Markets Tax Credit program helps us bring key partners together to support projects that unlock economic opportunity and generational wealth building.”
Today’s announcement brings the total amount awarded through the NMTC Program to $66 billion. Historically, NMTC Program awards have generated $8 of private investment for every $1 invested by the federal government. Through the end of fiscal year 2020, NMTC Program award recipients deployed almost $56 billion in investments for communities and businesses earning low incomes, with impacts such as the creation or retention of nearly 871,000 jobs and the construction or rehabilitation of nearly 231.5 million-square-feet of commercial real estate.
“These investments will create jobs and spur economic growth in urban and rural communities across the country,” Secretary of the U.S. Treasury Janet L. Yellen said. “Many of the communities that will receive these funds have confronted economic challenges over many decades. It’s critical that Congress sustain these investments over time by making the New Markets Tax Credit Program permanent.”
To better serve homeless individuals residing in Los Angeles’ “Skid Row,” the new 23,468 sq. ft. Joshua House Health Center was built to replace a much smaller site nearby.
The Federally Qualified Health Center will offer primary care, dental, optometry, and mental health services, as well as a broad array of wellness services. The site will serve 7,000 patients, 2,200 more than in the previous facility. Ninety-nine percent of the clientele lives below 200 percent of the federal poverty level, and the expansion of services is vital to the continued health of the community. In addition, the health center will be co-located with a supportive housing facility, which will provide 55 units of permanent housing for homeless individuals.
Skid Row has the largest concentration of people experiencing chronic homelessness in the country. Estimates of Skid Row’s population range from 8,000 to 11,000 people.
Capital Impact joined with the Nonprofit Finance Fund, Los Angeles Development Fund, and U.S. Bank Community Development Corporation on this $25.9 million NMTC transaction.
Healthy Food
Building in San Francisco, CA — one of the most expensive cities in the country — is a significant challenge. Yet, access to affordable, healthy food is needed more than ever. Meals on Wheels San Francisco (MOWSF) volunteers donate more than 20,000 hours and staff serve nearly 5,000 clients–providing in-home wellness and safety checks, nutrition counseling, and companionship. With demand rising, MOWSF invested in a new 37,000 sq. foot kitchen facility that could make 10,000 meals in one shift, while having the capacity for two [eight-hour] shifts and maximizing access to seven days a week.
The MOWSF program is very cost effective. It costs about $10 per day for the food and delivery of two meals and safety checks for a homebound senior. Meals can be provided for an entire year for roughly the same cost as one day in a hospital. A 2013 study found that if every state increased the number of older Americans who received meals by just 1 percent, it would save Medicaid more than $109 million in medical costs annually.
Capital Impact joined with JPMorgan Chase, San Francisco Community Investment Fund, Community Vision (formerly known as Northern California Community Loan Fund), and First Republic Bank on this $41 million NMTC project.
Education
Marygrove Conservancy is a nonprofit organization that was established to operate and steward the 53-acre Marygrove College campus in Detroit after its closure in 2019. Marygrove Conservancy’s primary objective is to facilitate the redevelopment of the campus as a cradle-to-career, pre-Kindergarten to graduate degree “P-20” education campus.
The newly constructed single-story building will encompass approximately 29,000 sq. ft. of space designed to support and provide wrap-around services to 144 children (infant to Pre-K) across the socioeconomic spectrum. Half of the slots will be federally subsidized through Early Head Start and Head Start programs. The project will create 12 classrooms and will have focused therapy rooms that will include play therapy, health therapy, and sensory rooms.
Starfish Family Services, a respected social service agency and early childhood provider in the metro Detroit market, will operate the site. Starfish is currently working with the University of Michigan to develop a year-round infant/toddler curriculum for the project that is designed specifically for children in an urban setting.
Capital Impact joined with the Northern Trust Company and the Kresge Foundation on this $22 million NMTC project.
Community Hubs
Small nonprofit organizations serving communities do not always have the funds to cover operating costs like office space and legal services. In Denton, Texas, the organization Serve Denton helps to fill that gap, enabling nonprofits to be financially self-sufficient and serve their communities while co-located services benefit community members.
With the construction of a new 48,000 sq. ft. hub, Serve Denton will provide space for a Federally Qualified Health Center, a food bank, and many other nonprofit service providers in the area. The organizations will have affordable office space and will share operating costs so that each can focus more funds on its clients.
Capital Impact joined with U.S. Bank to support this $9.5 million NMTC project.
A community development entity (CDE) submits an application to the CDFI Fund requesting the authority to allocate a specific dollar amount of tax credits.
If its application is approved, the CDE is awarded the authority to allocate tax credits to an investor.
The investor chosen by the CDE receives a tax credit totaling 39 percent of the cost of the investment. The investor can claim that tax credit over a period of seven years.
In exchange for those tax credits, the investor makes a qualified equity investment (QEI) in the CDE.
The CDE must use the QEIs it receives from the investor to finance businesses or real estate projects in communities living with low incomes, where the poverty rate is 20 percent or higher or the median income is 80 percent or lower than the Area Median Income. The CDE also has the option of investing in other CDEs making loans in areas with residents earning low incomes.
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About Capital Impact Partners
Capital Impact Partners, part of the Momentus Capital branded family of organizations, is transforming how capital and investments flow into communities to provide people with access to the capital and opportunities they deserve. As one of the nation’s leading mission-driven Community Development Financial Institutions (CDFIs), we help build strong communities and create generational wealth by deploying mission-driven financing, capacity-building programs, and impact investing opportunities.
Capital Impact Partners offers flexible financing for catalytic mission-aligned projects in four primary sectors: increasing access to health care, education, affordable housing, and healthy food.
In addition, we manage several multi-year initiatives in key regions to support emerging developers, small business owners, cooperatives, and community health enterprises through training, professional networks, access to experts and mentors, and pathways to grants and loan capital.
Capital Impact Partners has disbursed more than $3 billion since 1982 to create access to critical social services, grow entrepreneurs, and create quality jobs. Capital Impact Partners’ leadership in delivering financial and social impact has resulted in the organization being rated by S&P Global and Fitch Ratings and recognized by Aeris for its performance.
The Momentus Capital branded family of organizations refers to the combined operations of Capital Impact Partners and CDC Small Business Finance, as well as their affiliates, Momentus Direct Capital and Momentus Securities (an SEC-registered broker-dealer, MSRB-registered, FINRA/SIPC member). While each organization under the Momentus Capital brand still operates as a separate entity, their clients will now have access to more resources and products.
With headquarters in Arlington, Virginia, and San Diego, California, Momentus Capital operates nationally with a focus on larger urban areas and cities in Arizona, California, Georgia, Michigan, Nevada, New York, Texas, and the Washington D.C. metro area.
August 5, 2021 (Arlington, VA; Chicago, IL; and Delray Beach, FL) – Capital Impact Partners today announced that it has achieved a significant impact investing milestone by issuing more than $200 million of Capital Impact Investment Notes (Notes), the net proceeds of which help drive social impact through investment in organizations that provide access to critical social services, including health care, education, affordable housing, and healthy foods. Capital Impact partners with InspereX LLC to distribute the Notes through its Legacy™ Platform to a nationwide network of broker-dealers, institutions, and financial advisors.
Capital Impact Investment Notes provide institutional and retail investors a unique opportunity to align financial goals with personal principles through values-based investing.
Capital Impact has seen robust interest in these S&P A rated Notes that were the first offered by a Community Development Financial Institution (CDFI) that are S&P rated1, DTC-settled and offered on a continuous basis through brokerage accounts in almost all U.S. states.
“Capital Impact Investment Notes are intentionally designed to democratize access to impact investing vehicles,” said Natalie Gunn, Chief Financial Officer of Capital Impact Partners and CDC Small Business Finance. “Since 1982, we have consistently demonstrated our track record of delivering strong financial performance while simultaneously creating social impact in communities most in need.”
Capital Impact Investment Notes allow retail and institutional investors to invest as little as $1,000 in the mission-driven organization’s nationwide efforts to support locally-driven solutions and create social impact for communities.
“Achieving social returns alongside financial returns is an increasingly important investment strategy that InspereX strives to support. The targeted, measurable efforts of Capital Impact Partners have resonated especially well with both individual and institutional investors. We are proud to feature Capital Impact Investment Notes on our platform,” said John DesPrez, CEO of InspereX.
Through mission-driven financing, social innovation programs, capacity building, and impact investing, Capital Impact Partners’ leadership in delivering financial and social impact has resulted in high ratings from Aeris, a provider of comprehensive, third-party assessments to aid impact investment decisions; inclusion on the Impact Assets IA50 list multiple times; and a Platinum rating from Guidestar.
“I am incredibly proud that we have hit this $200 million milestone in such a short amount of time. It demonstrates that investors recognize the value in our offering to deliver social impact alongside a financial return. I’m humbled by their trust in Capital Impact and CDC Small Business Finance to use their investments to advance community solutions,” said Ellis Carr, president and CEO of Capital Impact Partners and CDC Small Business Finance.
InspereX is proud to serve as Lead Agent for Capital Impact Partners. InspereX is a leading underwriter and distributor of fixed income securities. The firms are not affiliates.
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About Capital Impact Partners
Capital Impact Partners, part of the Momentus Capital branded family of organizations, is transforming how capital and investments flow into communities to provide people with access to the capital and opportunities they deserve. As one of the nation’s leading mission-driven Community Development Financial Institutions (CDFIs), we help build strong communities and create generational wealth by deploying mission-driven financing, capacity-building programs, and impact investing opportunities.
Capital Impact Partners offers flexible financing for catalytic mission-aligned projects in four primary sectors: increasing access to health care, education, affordable housing, and healthy food.
In addition, we manage several multi-year initiatives in key regions to support emerging developers, small business owners, cooperatives, and community health enterprises through training, professional networks, access to experts and mentors, and pathways to grants and loan capital.
Capital Impact Partners has disbursed more than $3 billion since 1982 to create access to critical social services, grow entrepreneurs, and create quality jobs. Capital Impact Partners’ leadership in delivering financial and social impact has resulted in the organization being rated by S&P Global and Fitch Ratings and recognized by Aeris for its performance.
The Momentus Capital branded family of organizations refers to the combined operations of Capital Impact Partners and CDC Small Business Finance, as well as their affiliates, Momentus Direct Capital and Momentus Securities (an SEC-registered broker-dealer, MSRB-registered, FINRA/SIPC member). While each organization under the Momentus Capital brand still operates as a separate entity, their clients will now have access to more resources and products.
With headquarters in Arlington, Virginia, and San Diego, California, Momentus Capital operates nationally with a focus on larger urban areas and cities in Arizona, California, Georgia, Michigan, Nevada, New York, Texas, and the Washington D.C. metro area.
InspereX unites the more than two decades of success in fixed income and market-linked products origination, underwriting, distribution, and education of Incapital with the innovation of Silicon Valley’s 280 CapMarkets and its revolutionary fixed income tech platform, BondNav.® InspereX represents more than 400 issuing entities and has underwritten more than $670 billion in securities. The firm has seven trading desks and more than 200 employees with principal offices in Delray Beach; San Francisco; Chicago; and New York City. InspereX stands for people, products, and technology you can trust.
Disclaimer
This press release is not an offer to sell or a solicitation of an offer to buy any securities. Such an offer is made only by means of a current Prospectus (including any applicable Pricing Supplement) for each of the respective Notes. Such offers may be directed only to investors in jurisdictions in which the Notes are eligible for sale. Investors in such states should obtain a current Prospectus by visiting www.capitalimpact.org/invest/capital-impact-investment-notes. Investors are urged to review the current Prospectus before making any investment decisions. No state or federal securities regulators have passed on or endorsed the merits of the offering of the Notes. Any representation to the contrary is unlawful. The Notes will not be insured or guaranteed by the FDIC, SIPC or other governmental agency. As of the date hereof, the Notes will be offered for sale in all 50 states and the District of Columbia, excluding the States of Arkansas and Washington.
Forward-Looking Statements
This press release contains statements that are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Also, when Capital Impact uses any of the words “anticipate,” “assume,” “believe,” “estimate,” “expect,” “intend” or similar expressions, it is making forward-looking statements. These forward-looking statements are not guaranteed and are based on Capital Impact’s present intentions and on Capital Impact’s present expectations and assumptions. These statements, intentions, expectations, and assumptions involve risks and uncertainties, some of which are beyond Capital Impact’s control, that could cause actual results or events to differ materially from those anticipated or projected. Purchasers of Notes should not place undue reliance on these forward-looking statements, as events described or implied in such statements may not occur. Except as required by law, Capital Impact undertakes no obligation to update or revise any forward-looking statements as a result of new information, future events or otherwise.
S&P Global reaffirmed a long-term issue credit rating of A to the Notes on November 12, 2020. Please check the Pricing Supplement for the S&P credit rating assigned to Notes currently being offered for sale. An S&P credit rating is not a recommendation to buy, sell or hold Notes and may be subject to suspension, reduction or withdrawal at any time by S&P. ↩︎
Grants through the Treasury’s CDFI Rapid Response Program (CDFI RRP) will provide necessary capital for CDFIs to respond to economic challenges created by the COVID-19 pandemic, particularly in disinvested communities
Arlington, VA (June 15, 2021)– The U.S. Department of the Treasury announced today that Capital Impact Partners was awarded $1,826,265 as part of $1.25 billion in awards to 863 Community Development Financial institutions (CDFIs) to respond to economic challenges created by the COVID-19 pandemic, particularly in disinvested, yet persevering communities across the country.
The awards were announced today by Vice President Kamala Harris at the White House with Treasury Secretary Janet L. Yellen. The grants will be made through Treasury’s CDFI Rapid Response Program (CDFI RRP).
“In serving places that the financial sector historically hasn’t served well, CDFIs lift our whole economy up. We know that for every dollar injected into a CDFI, it catalyzes eight more dollars in private-sector investment, meaning that today’s announcement might lead to an additional $10 billion in investment,” said Secretary Janet Yellen.
“Communities of color have experienced disproportionate impacts of COVID-19 and racial injustices over the course of the last year, on top of historical disinvestment,” said Ellis Carr, president and CEO of Capital Impact Partners and CEO of CDC Small Business Finance. “We will utilize the RRP award to expand our work and uplift community members, partners, and borrowers to ensure that communities across the country advance on their journey to equity and wealth building.”
The CDFI RRP grant funds will be used to support eligible activities such as financial products, financial services, development services, and certain operational activities, and to enable CDFIs to build capital reserves and loan-loss reserves. The CDFI Fund designed the program to disburse the funds rapidly in light of the nationwide economic impacts of the COVID-19 pandemic. The CDFI RRP was authorized by the Consolidated Appropriations Act, 2021.
“These awards provide CDFIs with an unprecedented level of flexible capital to help distressed and underserved communities across the country take meaningful steps towards recovering from the debilitating economic impacts of the COVID-19 pandemic,” said CDFI Fund Director Jodie Harris. “CDFI RRP awards will enable CDFIs to help businesses keep their doors open, help families make ends meet, and help maintain important community facilities during this difficult time.”
Since 1982, Capital Impact Partners has centered social and economic justice needs of the communities we serve, investing more than $2.5 billion nationwide to serve more than 6 million people and to create nearly 40,000 jobs while expanding access to affordable housing, health care, healthy food, education and small business funding. Through our work, we have and continue to invest in disinvested communities to build economic mobility, resilience, equity, and opportunity.
In April, 2021, Capital Impact Partners and CDC Small Business Finance aligned operations in a new joint enterprise designed to transform how capital and investments flow into historically disinvested communities. The organizations are focusing efforts to drive economic empowerment and address systemic issues facing communities.
Through the COVID-19 pandemic, we have continued to work as a counterforce to help communities address the now-amplified needs of individuals, families, and businesses. We implemented several initiatives and funds to support the needs of our communities, including:
CPCA COVID Response Loan Fund: a $25 million fund launched to provide flexible financing for California community health centers and clinics;
DMV Good Food Fund Innovative Response Fund: launched to provide $100,000 in awards to key partners in order to allow local good food enterprises to reposition and pivot in response to the COVID-19 pandemic and its impacts on the regional food economy;
2020 Co-op Innovation Award: provided $100,000 in grants to cooperative organizations expanding knowledge of and opportunities for wealth building and sovereignty through the co-op model, particularly in the face of COVID-19;
Stay Midtown: made additional rental and relocation assistance available to renters in partnership with Midtown Detroit, Inc through the Stay Midtown program; and
Entrepreneurs of Color Fund: helped to channel relief funds to support small business borrowers in Washington, D.C. through our partners at the Latino Economic Development Center (LEDC) and the Washington Area Community Investment Fund (Wacif).
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About Capital Impact Partners
Through capital and commitment, Capital Impact Partners helps people build communities of opportunity that break barriers to success. Through mission-driven financing, social innovation programs, capacity building, and impact investing, we champion social and economic justice issues. Through this work, we help increase equitable access to quality health care and education, healthy foods, affordable housing, cooperative development, and the ability to age with dignity.
Capital Impact has disbursed more than $2.5 billion since 1982. Our leadership in delivering financial and social impact has resulted in being rated by S&P Global and recognized by Aeris for our performance. Headquartered in Arlington, VA, Capital Impact Partners operates nationally, with local offices in Austin, TX, Detroit, MI, New York, NY, and Oakland, CA. Learn more at www.capitalimpact.org.
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