www.bell.bank Member FDIC 35344 Partner with Bell for: Participation loans Bank stock and ownership loans Holding company loans and lines of credit Reg. O loans to bank employees, insiders or directors Equipment financing Find the terms and flexibility you need on large or small loans at Bell, with faster turnaround from an experienced team dedicated to correspondent lending. Whatever Loan Amount You’re Looking For, We Can Help. Tom Ishaug Call me at 701.451.7516 – Based in Fargo, N.D. Serving North Dakota, South Dakota, Minnesota 35344AD Colorado Bankers Association 2022_Tom.indd 1 3/31/22 4:33 PM Coaching or training is a large part of the services CDFIs provide in addition to the loans. business customer has progressed to the point they are eligible for capital from the traditional banking community. Another way mainstream banks partner with CDFIs is through direct investment in a CDFI, which helps the bank meet its Community Reinvestment Act (CRA) obligations. CRA financing can be classified in three forms: equity investments, representing capital invested in CDFIs; debt, representing funds loaned to CDFIs; and deposits, funds placed in CDFI depository institutions, typically earning interest and insured by a federal governmental agency. For CDFIs, it is about the mission of community development, creating jobs, and building businesses. Coaching or training is a large part of the services CDFIs provide in addition to the loans. Many entrepreneurs may have a wonderful idea for a business but lack experience running a business. The Small Business Association (SBA), Small Business Development Centers (SBDC) and Office of Economic Development & International Trade (OEDIT) work in conjunction with CDFIs to provide the coaching and education necessary to small business owners. For a start-up, this can include making a business plan, developing a marketing plan, and learning Quickbooks. For a growing company, it can include tackling the next market, adding employees, bidding practices, and more. These supports further benefit the business in its path to “bankability.” These tools are essential to help make a level playing field for business owners and allow them to succeed. By design, CDFIs are not competitors to banks. They are intended to help certain individuals receive the capital and services they need when traditional banking is not available CDFIs create a path to “bankability” so when customers have improved their credit rating, increased their collateral, shown their ability to repay loans, etc., they can turn to more traditional financial institutions. By working together, banks and CDFIs help to ensure communities and individuals will prosper. September • October 2022 11
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