CDFIs are a lifeline for many small business owners who cannot get traditional financing from large banks.
CDFIs are a lifeline for many small business owners who cannot get traditional financing from large banks.
Throughout our tenure as a CDFI, (since 2010), KyHFH CDFI has been able to support our 31 nonprofit affordable housing entities with 0-2% loans for the construction of affordable single family housing units, capital equipment, staffing needs, energy efficiency upgrades, land acquisition, infrastructure, commercial property and neighborhood revitalization. Without the funding, support and brand of the CDFI, serving low-income clients, neighborhoods and entire counties in Kentucky would not be possible. To date, Habitat in KY has provided close to 8,000 units of affordable housing that serves a population who earn 80% and below the AMI, but also, our largest client base earns 30-60% AMI. Many of our clients transition from renters to first-time homebuyers as well as moving from a pre-1976 mobile home to a traditionally built housing unit, making their lives safer, more affordable and energy efficient. Who else could provide this type of support as well as improvements to our communities than a CDFI. Without the CDFI Fund, none of this would have taken place in the past, currently or in the future.
Mary Stoick from Sunrise Bank in Minneapolis, Minnesota, is the reason my family’s business, which had been in operation for 71 years, is still thriving. We were on the verge of collapse, and being evicted from our old location at that point made it even more challenging. In a desperate attempt to save our business, I decided to take a risky gamble and enter the food truck business. We were incredibly fortunate with the outcome of that decision. While our food truck business was thriving, we faced significant difficulties in finding a lender with fair pricing. Mary informed us that unfortunately, all the allocated funds for their tax credit loan had been exhausted, and they would no longer be able to provide us with funding through that avenue. She emphasized the slim chances of success, urging me to let it go, but I refused to give up. I relentlessly pursued her for days, and finally, something gave way. There were just enough funds to allow us to continue our family legacy. We are now approaching 80 years old, and I have a son. If he chooses to follow in our footsteps, he could potentially extend our business history to 125 years. None of this would have been possible without Mary and Sunrise Bank. This is not an exaggerated or fabricated story; it’s a true account of my life. Mary stands out among many as one of the few who genuinely cares for her customers, making her a rare gem. I sincerely hope that this allocation goes through so that she can continue to do for others what she has done for me.