Enterprise Development Fund Receives $3.75 Million & CDFI Designation
January 27, 2010
The Enterprise Development Fund of Erie County (FUND), an affiliated agency of the Economic Development Corporation (EDCEC), held a press conference today announcing awards over $3.75 million in new investments as well as a Department of Treasury certification as a Community Development Financial Instituion. John Elliott, who serves as the President and CEO of both the EDCEC and the FUND said "The Enterprise Development Fund has historically provided gap financing for industrial projects since its inception in 1986, but we have still identified additional needs not currently being met. These additional monies will serve as a catalyst in providing targeted investment to job-creating projects in high poverty areas that are currently underserved."
To help meet the FUND's 2010 goal of increasing total lending capital, Northwest Savings Bank is providing a revolving line of credit in the amount of $750,000. "NWSB is honored to help be a part of this exciting announcement and we look forward to continuing and growing our partnership with the Enterprise Development FUND," said Jim Martin Region President.
The Commonwealth Financing Authority also approved an allocation of $3 million in Build PA monies for the FUND which were presented by Regina Smith from State Senator Jane Earll's office. These funds will help meet the needs of real estate projects that need "gap" or mezzanine financing in high poverty areas throughout Erie County that struggle to attract adequate real estate investment.
Congresswoman Kathy Dahlkemper also announced that the FUND received US Treasury recognition as the region's first Certified Financial Development Institution (CDFI). A CDFI is a specialized financial institution that works in market niches that are underserved by traditional financial institutions. CDFIs provide a unique range of financial products and services in economically distressed target markets, flexible underwriting and risk capital for needed community facilities, and technical assistance, commercial loans and investments to small start-up or expanding businesses in low-income areas. "Receipt of this designation truly compliments and enhances activities and services currently being offered by the FUND. We look forward to accessing additional monies to reinvest in our core communities that need the jobs and stimulation the most," noted Jim Gehrlein, Chairman of the FUND.