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March 24, 2004

Ground-Breaking Partnership to Deliver $6,000,000 in Financing for Community Development

Florida Community Loan Fund To Partner With The Enterprise Foundation In National Lending Model

The Enterprise Foundation's financial services arm and Florida Community Loan Fund. Inc. (the Loan Fund) announced today an innovative $6 million partnership to fuel revitalization efforts in low-income neighborhoods.

Ignacio Esteban, Executive Director of the Loan Fund, said the new funds from Enterprise mean that the Loan Fund can increase the amount of money it loans to Florida nonprofits. "An investment by the Enterprise Foundation is a strong vote of confidence in the Loan Fund's ability to deliver capital and represents one of the first model partnerships between a national source of community development capital and a statewide loan fund in the country. With this infusion of capital, the Florida Community Loan Fund can help more nonprofits meet the need in their community for housing, child care centers, job training facilities and commercial redevelopment."

Under the terms of the partnership, the Loan Fund has immediate access of up to $3 million in capital from The Enterprise Foundation, which it will match with $3 million of its own capital. This will allow the Loan Fund to increase its loan cap for individual nonprofits from $500,000 to $1 million.

The Florida Community Loan Fund, a federally-certified Community Development Financial Institution, has delivered $13 million in funding and leveraged more than $50 million to support community development projects throughout Florida. The Enterprise Foundation's financial services arm, a CDFI called Enterprise Housing Financial Services, is valued at $150 million and is one of the country's largest non-bank community development loan funds specializing in neighborhood revitalization.

Kristin L. Faust, President of Enterprise Housing Financial Services, said her organization is interested in working with effective nonprofit lenders nationwide to expand Enterprise's work in community development.

"The partnership between The Enterprise Foundation and the Florida Community Loan Fund is a model we want to replicate, making our resources available to smaller nonprofit lenders that have stellar track records and know firsthand about a community's priorities. This is a highly efficient and effective way to ensure more affordable housing and community facilities are completed in low-income neighborhood." Faust said this partnership is one of the first models to combine the financial strength of a national CDFI with the proven market knowledge of a statewide non-profit lender.

This new loan model has been specifically designed to provide quicker access to funds to help nonprofit developers compete with private developers, said Terri Y. Montague, President and Chief Operating Officer of the Enterprise Foundation.

"Nonprofits often lose out on real estate deals because they cannot get the funding together quickly enough to compete with the resources of a private developer. Partnerships like the one between The Enterprise Foundation and the Florida Community Loan Fund help make more capital available quicker and, as a result, nonprofits are able to meet vital community needs, such as preserving affordable housing in hot real estate markets," Montague said.

Enterprise Housing Financial Services and the Florida Community Loan Fund are two of about 600 Community Development Financial Institutions in the country. CDFIs are private-sector, financial intermediaries with community development as their primary mission. Both EHFS and the Loan Fund make capital available exclusively to nonprofits that might not be able to get a loan from a conventional financial institution. All CDFIs work in support of community enhancements, such as affordable rental and for-sale housing, economic development, community centers and child care facilities.

The Enterprise Foundation helps America's low-income families with their struggle out of poverty by providing decent homes, access to steady employment, quality child care and safer streets. Working with a network of 2,500 community organizations nationwide and through its 15 local offices, The Enterprise Foundation has leveraged close to $5 billion in investments and donations to help build almost 160,000 affordable homes and help nearly 40,000 hard-to-employ people find jobs since 1982.

Enterprise Housing Financial Services (EHFS) provides innovative financial services products and technical assistance to support nonprofit organizations in the acquisition, development and rehabilitation of decent affordable housing for low-and moderate-income families and to assist in the revitalization of their neighborhoods.

Florida Community Loan Fund provides capital and technical assistance for projects that support affordable housing, economic development and social services from its offices in Orlando, Tampa, Jacksonville and Sarasota. Established in 1994, the Loan Fund is among the fastest growing funds of its kind in the country and a pioneer in the community development finance field in Florida. It is certified as a Community Development Financial Institution (CDFI) and as a Community Development Entity (CDE).

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