CAHEC Capital Receives 300,000 CDFI Grant

In September 2018, CAHEC Capital received notification from the Community Development Financial Institutions (CDFI) Fund, a division of the U.S. Department of Treasury, that it was selected as a recipient of a $300,000 Financial Assistance award as part of the CDFI Program's FY 2018 funding round. Through financial awards and trainings, the CDFI Program invests in and builds the capacity of CDFIs, empowering them to grow, achieve organizational sustainability, and contribute to the revitalization of their communities.  
 
This year was the first time CAHEC Capital applied for a Financial Assistance award, competing in the Small and/or Emerging CDFI (SECA) category where annual awards are capped at $700,000. Grant proceeds will be utilized by CAHEC Capital as lending capital to make future loans that will support Low-Income Housing Tax Credit (LIHTC) developments across CAHEC's footprint. For the FY 2018 funding round, the CDFI Fund received Financial Assistance applications from 364 organizations requesting $326.6 million in Financial Assistance awards. Ultimately, 221 organizations received $159.9 million in awards. CAHEC Capital was 1 of 57 award recipients in the SECA category. Since its creation in 1994, the CDFI Fund has awarded over $1.96 billion in Financial Assistance and Technical Assistance awards to certified CDFIs through a competitive application process.
 
"This grant is an integral part of the future success of CAHEC Capital," said Larry Poole, CAHEC Capital's Manager, Lending. "One of the biggest challenges faced by CDFIs is access to low-cost capital. These funds will help us better serve our borrowers, and ultimately low-income residents, by allowing CAHEC Capital to make competitively priced loans in 2019 and beyond. This is particularly critical in a rising interest rate environment like today. We are thankful to have been selected for this award."

What is CAHEC Capital ?

CAHEC Capital is a certified, nonprofit CDFI and lending affiliate of CAHEC.  The Company provides flexible and affordable loan products to LIHTC developers focusing on development financing for new affordable housing communities as well as the preservation and improvement of existing low-income neighborhoods. Since originating its first loan in December 2015, CAHEC Capital has provided predevelopment and bridge financing totaling $20.0 million that has aided in the construction and development of 1,855 affordable housing units across five states (NC, SC, VA, KY, and WV).  
For more information regarding CAHEC Capital and its loan programs contact Larry Poole at 919-645-9811 or lpoole@cahec.com