This Community Developments Insights report describes the U.S. Small Business Administration’s (SBA) Small Business Investment Company (SBIC) program, its role in capital markets, and how financial institutions—including national banks and federal savings associations (collectively, banks)—can use the program to expand their small-business finance activities. This report also describes how the SBA licenses these companies, how they operate and are supervised, and the guidelines they should follow. Finally, this report outlines risks and regulatory considerations of bank investments in SBICs and explains how these investments may receive consideration under the Community Reinvestment Act (CRA).
The information in this report was obtained from a variety of sources, including bankers, non-supervised nancial intermediaries, SBICs’ general partners (GP), trade groups, the SBA’s Of ce of Investment and Innovation (OII), and other parties involved with small business investment companies. Appendix E provides a resource directory for additional program information.
Pay for Success: The First Generation provides a look at the ten Pay for Success projects that have launched in the United States–projects that have finalized contracts and financing, and initiated service delivery as of March 2016. It offers detailed comparison of U.S. PFS projects and synthesizes observations on the market’s development to date. It is informed by Nonprofit Finance Fund’s unique and central vantage point in the U.S. Pay for Success arena. This report pulls from PFS contracts and other publically available documents, interviews with stakeholders, and incorporates information and observations gleaned by NFF through its more than five years of experience as a field builder, funding intermediary for PFS project development, and investor. It examines project goals and project design; the partners and stakeholders involved; the underlying data, evidence, and evaluation plans; the governance and investment structures, including repayment terms and investor profiles; and project costs. The report also provides key definitions for some terms, in an effort to further a common language for the PFS eld.
As cities wrestle with the growing challenge of wealth inequality, more and more leaders are looking to broad-based ownership models as tools to create jobs and build community wealth. These models are highly effective, with a positive impact for low- and moderate-income individuals and communities. This report looks at six such models—ESOPs, Worker Cooperatives, CDFIs, Social Enterprises, Municipal Ownership, and Emerging Hybrids—with examples of best practices, and explores how these models can be used in community economic development.
This report, published in partnership by the Center on Social Disparities in Health, the Build Healthy Places Network, and the Robert Wood Johnson Foundation, is a "resource for those working to improve low-income communities and the lives of the people living in them." Despite growing recognition that social and economic conditions are the primary drivers of health, the fields of community development and public health remain siloed. This new report from the Robert Wood Johnson Foundation’s Build Healthy Places Network outlines specific opportunities to integrate the two fields and overcome barriers to collaboration. It also includes recommendations on how to measure the impact of cross-sector collaborations and refine programs accordingly.
This report examines growth obstacles and opportunities within the community development financial institutions (CDFI) industry. The report was motivated by a view among many practitioners and investors that the CDFI industry is at a pivotal time of change in response to new capitalization options, ongoing operating challenges, and shifts in the external environment.
This report examines growth obstacles and opportunities within the community development financial institutions (CDFI) industry. The report was motivated by a view among many practitioners and investors that the CDFI industry is at a pivotal time of change in response to new capitalization options, ongoing operating challenges, and shifts in the external environment.
Michael Brostek, Kevin Daly, Thomas Gilbert, Evan Gilman, Tami Gurley-Calvez, Katherine Harper, Stuart Kaufman, Summer Lingard, Don Marples, Donna Miller, Ed Nannenhorn, Karen O'Conor and Cheryl Peterson
This report from the Opportunity Finance Network details how community development financial institutions (CDFIs) can support quality job creation as a way to reduce income inequality. Noting that this approach is currently underutilized in the field, the report draws on five case studies of CDFIs that are using tools such as debt and equity products, interest rate reductions, and technical assistance to not only grow small businesses, but ensure access to quality jobs for low-income communities. The report makes recommendations for how to scale this approach in the CDFI field.
This Community Developments Insights report describes the U.S. Small Business Administration’s (SBA) Small Business Investment Company (SBIC) program, its role in capital markets, and how financial institutions—including national banks and federal savings associations (collectively, banks)—can use the program to expand their small-business finance activities. This report also describes how the SBA licenses these companies, how they operate and are supervised, and the guidelines they should follow. Finally, this report outlines risks and regulatory considerations of bank investments in SBICs and explains how these investments may receive consideration under the Community Reinvestment Act (CRA).
The information in this report was obtained from a variety of sources, including bankers, non-supervised nancial intermediaries, SBICs’ general partners (GP), trade groups, the SBA’s Of ce of Investment and Innovation (OII), and other parties involved with small business investment companies. Appendix E provides a resource directory for additional program information.
Pay for Success: The First Generation provides a look at the ten Pay for Success projects that have launched in the United States–projects that have finalized contracts and financing, and initiated service delivery as of March 2016. It offers detailed comparison of U.S. PFS projects and synthesizes observations on the market’s development to date. It is informed by Nonprofit Finance Fund’s unique and central vantage point in the U.S. Pay for Success arena. This report pulls from PFS contracts and other publically available documents, interviews with stakeholders, and incorporates information and observations gleaned by NFF through its more than five years of experience as a field builder, funding intermediary for PFS project development, and investor. It examines project goals and project design; the partners and stakeholders involved; the underlying data, evidence, and evaluation plans; the governance and investment structures, including repayment terms and investor profiles; and project costs. The report also provides key definitions for some terms, in an effort to further a common language for the PFS eld.
As cities wrestle with the growing challenge of wealth inequality, more and more leaders are looking to broad-based ownership models as tools to create jobs and build community wealth. These models are highly effective, with a positive impact for low- and moderate-income individuals and communities. This report looks at six such models—ESOPs, Worker Cooperatives, CDFIs, Social Enterprises, Municipal Ownership, and Emerging Hybrids—with examples of best practices, and explores how these models can be used in community economic development.
This report, published in partnership by the Center on Social Disparities in Health, the Build Healthy Places Network, and the Robert Wood Johnson Foundation, is a "resource for those working to improve low-income communities and the lives of the people living in them." Despite growing recognition that social and economic conditions are the primary drivers of health, the fields of community development and public health remain siloed. This new report from the Robert Wood Johnson Foundation’s Build Healthy Places Network outlines specific opportunities to integrate the two fields and overcome barriers to collaboration. It also includes recommendations on how to measure the impact of cross-sector collaborations and refine programs accordingly.
This report examines growth obstacles and opportunities within the community development financial institutions (CDFI) industry. The report was motivated by a view among many practitioners and investors that the CDFI industry is at a pivotal time of change in response to new capitalization options, ongoing operating challenges, and shifts in the external environment.
This report examines growth obstacles and opportunities within the community development financial institutions (CDFI) industry. The report was motivated by a view among many practitioners and investors that the CDFI industry is at a pivotal time of change in response to new capitalization options, ongoing operating challenges, and shifts in the external environment.
Michael Brostek, Kevin Daly, Thomas Gilbert, Evan Gilman, Tami Gurley-Calvez, Katherine Harper, Stuart Kaufman, Summer Lingard, Don Marples, Donna Miller, Ed Nannenhorn, Karen O'Conor and Cheryl Peterson
This report from the Opportunity Finance Network details how community development financial institutions (CDFIs) can support quality job creation as a way to reduce income inequality. Noting that this approach is currently underutilized in the field, the report draws on five case studies of CDFIs that are using tools such as debt and equity products, interest rate reductions, and technical assistance to not only grow small businesses, but ensure access to quality jobs for low-income communities. The report makes recommendations for how to scale this approach in the CDFI field.
