(March 3, 2009 – New York, NY) Deutsche Bank recently became the latest Federation investor with a $1 million commitment to the Community Development Investment Program (CDIP). With these funds, the Federation will place below-market rate deposits in community development credit unions (CDCUs) in New York State and California. The deposits will likely support CDCUs serving Manhattan’s Lower East Side, Washington Heights and East Harlem neighborhoods. Other target areas include Syracuse and Lakewood in upstate New York, and Oakland, California.
“This investment could not have come at a more opportune time” explained Alice Greenwald, Director of Community Development Investment Program. “The liquidity needs of CDCUs have grown tremendously throughout the last year as increasing numbers of people in underserved communities turn to their local credit unions for personal, vehicle, and home loans.”
“Deutsche Bank’s generous support will help us sustain our member CDCU’s vital community lending at a time when most low-income individuals are finding it harder and harder to access affordable credit and financing,” added Greenwald. “This investment underscores Deutsche Bank’s commitment to helping low-income communities access affordable financial services.”
The Federation launched its 25th anniversary capital campaign two years ago, with a goal of bringing assets under management to $50 million by the end of 2009. In addition to significant support from the banking and philanthropic sectors, the CDIP has also received direct investments from some of its Community Development Partner credit unions.
“Access to credit for individuals and small businesses is a key feature of current economic recovery plans, and the community lending that the Federation supports is more important than ever. Deutsche Bank is proud to support the CDIP with this investment,” said Gary Hattem, President of the Deutsche Bank Americas Foundation.
In addition to nominee deposits, the Federation makes secondary capital loans, risk-sharing Predatory Relief and Intervention Deposits (PRIDEs), and administers special grant programs for CDCUs. Deutsche Bank’s new investment brings the CDIP portfolio to a record $48.7 million in funds under management. To date the Federation has never caused a loss to any of its investors.
Interested investors looking for additional information about the Federation's Community Development Investment Program, can click here, or contact Alice Greenwald, Community Development Investments Director, at email@example.com, or (800) 437-8711 x212.