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Great Rivers Community Capital - a Justine Petersen Company. Sheri Flanigan-Vazquez Economic Development Director (314) 664-5051 sflanigan@justinepetersen.org. Mission. Asset Development

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great rivers community capital a justine petersen company

Great Rivers Community Capital- a Justine Petersen Company

Sheri Flanigan-Vazquez

Economic Development Director

(314) 664-5051

sflanigan@justinepetersen.org

mission
Mission

Asset Development

to connect institutional resources to the needs of low- and moderate-income people in order to build assets and create enduring change

target population
Target Population
  • 80% African-American
  • 80% Low to Moderate Income ( under 80% of the median income)
  • 68% Female-Headed Households
justine petersen products
Justine Petersen Products
  • Homeownership
  • Micro-enterprise
  • Individual Development Accounts
  • Great Rivers Community Capital, a wholly owned subsidiary
justine petersen results
Justine Petersen Results
  • Nearly ten years of operations
  • 2,500 home purchases
  • $2.5 million originated in 350 micro-loans
  • $1.5 million asset purchases by 500 Individual Development Account holders
demand for lending institution
Demand for Lending Institution
  • One-on-one counseling model
  • Reserve Account Relationship – first contact for emergency funding
  • Lack of access to affordable capital
    • Low credit score (median 580)
    • Low income
    • Limited collateral
great rivers community capital
Great Rivers Community Capital
  • Founded to formalize lending activities of Justine Petersen
  • Incorporated in April 1999
  • Received Community Development Financial Institution (CDFI) Fund Technical Assistance Award in 1999
  • Became certified CDFI in August 2000
cdfi certification
CDFI Certification
  • Primary Mission Test
    • Must have primary mission of promoting community development
  • Financing Entity Test
    • Must have staff and funds available to originate loans
  • Target Market Test (geographic or low-income)
    • Must direct 60% of total activities toward serving target market
cdfi certification9
CDFI Certification
  • Development Services Test
    • Must provide counseling to borrowers
  • Accountability Test
    • Must maintain accountability to target market (Board composition)
  • Non-governmental Entity
    • Must not be controlled by one or more governmental entities
initial capitalization
Initial Capitalization
  • $660,000 CDFI Fund Core Award
    • $500,000 10 year balloon, 1% interest loan
    • $150,000 grant
    • $10,000 additional technical assistance
  • CDFI Funds must be matched by local investments at the same terms (does not include technical assistance)
initial capitalization11
Initial Capitalization
  • Justine Petersen staff time and overhead
  • Justine Petersen Retained Earnings
  • State of Missouri Community Bank 50% Tax Credit Program leveraged bank investment at 1%, ten year term
  • Foundation investment at 3%, five year term
loan products
Loan Products
  • First Mortgages
    • Designed as one to two year balloons with the goal of refinancing the customer into A paper
  • Second Mortgages
    • Down payment / closings costs, home repair, foreclosure prevention
loan products13
Loan Products
  • Business Loans
    • Most business lending facilitated through Justine Petersen’s SBA Micro-loan Intermediary
  • Consumer Loans
    • Unsecured debt consolidation primarily for pre-purchase homeownership clients
  • Credit Building Loans
    • $150 loan with goal to build twelve month credit line
great rivers loans originated
Great Rivers Loans Originated
  • $1.5 Million originated to 250 borrowers
developed capacity
Developed Capacity
  • Underwriting
    • Relationship Lending
    • Assessing comprehensive fiscal health
    • Determining “essential loan amount”
    • Cross selling Justine Petersen products for a long-term solution
developed capacity16
Developed Capacity
  • Loan Servicing
    • Software
    • Monthly statements
    • Standardized notes and deed of trust
    • Securing Collateral
    • Reporting to credit bureau
  • Collections
    • “Community Money”
    • Restructure and work-outs
investment opportunities
Investment Opportunities
  • Future capitalization plans
    • Seek low-interest loans from foundations or companies interested in socially responsible investing
  • Great Rivers Community Reinvestment
    • Missouri State Family Development Account tax credits
      • 50% State Tax Credit
for more information

For More Information

Robert F. Boyle Sheri Flanigan-Vazquez

Executive Director Economic Development Director

rboyle@justinepetersen.orgsflanigan@justinepetersen.org

(314) 664-5051

www.justinepetersen.org