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CCLF E-NEWSLETTER OF COMMUNITY DEVELOPMENT PROJECTS, ISSUES & FEATURES 3rd Quarter /2011

Salsedo Press: CCLF Borrower Spotlight

In This Issue Salsedo Press NSP Update CCLF Noteworthy

Save the Date November 3rd CCLF will be celebrating our 20th Anniversary on the evening of Thursday, November 3rd. The celebration will take place on the 57th floor of Chase Tower, from 5:30pm - 8:30pm. More details will be forthcoming - we hope to see you there! Salsedo Press, a CCLF borrower for more than a decade, recently paid off their fifth loan. Their business model is an example of the kind of community development that relationship-based lending achieves. Salsedo was founded in the late 1960s by students in Champaign-Urbana when no one would print their materials without censorship. Once moving to Chicago, they started out at the Industrial Council of Nearwest Chicago's small business incubator, another CCLF borrower. In their own building in Humboldt Park since 1995, Salsedo Press is working to adapt to the swiftly-changing printing business environment. One of Salsedo's co-op members, Chris Burke, recalls that in the early 1990s, they needed financing for updated equipment. No traditional financer would take their request; as Burke put it, "No one could see the sweat equity we had put into the business." CCLF was able to recognize this, and made the first of 5 loans to Salsedo Press, which have totaled more than $600,000.

Thank you to our sponsors: Lead Sponsors: JPMorgan Chase Citibank Major Sponsors: Northern Trust BMO Harris Bank Bank of America PNC Bank


Salsedo Press is a certified minority-owned business enterprise where employees often move up within the company. Though the printing industry is changing rapidly with new technology, Burke says, "We've been able to step in and make a difference at critical times" for local social change agents. To learn more about CCLF's financing for social enterprises, worker-owned cooperatives, and women- and minority-owned real estate development businesses, through the Communities at Work Fund and the Small Business Development Fund, please contact our lending team.

Salsedo Press Loans Through the Years: 1995 1996 1999 2002 2003 -

$125,000 for acquisition of a large printing press $90,000 for electronic pre-press and bindery equipment $140,000 for a new image setter and refinance of prior loans $90,000 for acquisition of a new collator finishing system $184,198 for acquisition of another printing press & equipment

PNC Bank Increases Investment in CCLF $5 Million Line of Credit Will Aid Neighborhood Stabilization Lending PNC Bank recently expanded their $2 million investment in CCLF with a $5 million line of credit. Their initial investment supported CCLF's lending in the first phase of the City of Chicago's Neighborhood Stabilization Program. As the second phase begins, this line of credit will help CCLF meet increasing demand for these loans. The second phase has the potential to triple the volume of lending that CCLF will do for the program. "PNC recognizes the need for sustainable home ownership, and our work with CCLF has created a terrific vehicle through which we can effectively revitalize homes, assist families in achieving an affordable housing solution, and stabilize neighborhoods," says Tony Smith, Community Development Market Manager. "This also has the benefit of creating livable wages and construction jobs when jobs are high priority, essentially creating a quadruple bottom line."

PNC's Ryan Sagers and Tony Smith present loan documents for CCLF President Calvin L. Holmes to sign, along with CCLF's Clarice Norin, Jane I. Ames, and Jessica Wozniak.

Borrower Thanks CCLF would like to specially thank NASCO Properties Inc, Mustard Seed of Chicago Inc, Stone Soup Cooperative Leland, 4832 S. Vincennes LP, and 300 E. 51st Street. These borrowers were the first to return their semi-annual compliance packages in the most recent round. As a nonprofit financial institution, the impact data collected during this routine monitoring is critical to meeting covenants with our investors and funders, and ensuring that CCLF continues to meet our mission goals.

CCLF Recieves $1.5 Million Award

CCLF received a $1,500,000 permanent capital award from the U.S. Department of the Treasury Community Development Financial Institution (CDFI) Fund. This award will support the increase in demand for CCLF's lending for community development throughout metropolitan Chicago for commercial/ retail development and neighborhood stabilization. The award was presented in Chicago by U.S. Senator Richard Durbin, U.S. Representative Danny Davis, and CDFI Fund Director Donna Gambrell.


Neighborhood Stabilization Program Update NSP work helping keep developers in business CCLF's work with the City of Chicago Neighborhood Stabilization Program (NSP) continues to move forward. As foreclosures threaten neighborhoods throughout the Chicagoland area, stabilization work is more important than ever. The City's NSP targets neighborhoods that are hardest hit by the foreclosure crisis by hiring qualified developers to renovate homes to put back on the market. The federal program is divided into three phases, and lending for the first is currently wrapping up as the second phase begins. CCLF primarily provides construction bridge loans, secured by NSP reimbursable funding, for 1-5 unit buildings to developers approved by the program. Additionally, CCLF has closed a construction and permanent financing package for a 36-unit NSP-approved project in Washington Park, for a development team that was unable to secure a complete financing package elsewhere. To a lesser extent, CCLF has issued commitments to provide permanent financing for a select number of small NSP projects. CCLF has handled the financing for almost 45% of the total properties in the program. CCLF has found a silver lining to its NSP lending work. In addition to stabilizing neighborhoods by rehabbing homes and finding new ownership, NSP projects have provided financially feasible job and contract opportunities for small neighborhood-based businesses and individuals; specifically tradesmen, contractors, developers and numerous other professional services providers. As a bridge lender, one of the most significant roles CCLF fills is the ability to disburse construction funds in a manner that would exceed what the governmental financing process could do. In this way, CCLF is able to provide funding to the developers and contractors as promptly as possible.

By the Numbers CCLF's NSP Work Since 2009 Lending Closed more than $18 million in bridge loans Disbursed more than $8 million in over 240 individual construction disbursements, with an average of 3-7 business days for approval Financed 53 properties, representing 124 units of housing Supported 18 borrowers (NSP approved developers), and an average of 7 construction trade firms per project Provided financing in 14 community areas hardest hit by foreclosures Technical Assistance Partnered with another CDFI to educate NSP developers on end-buyer financing products available for homebuyers Provided booth at the 2011 Green Home Expo for NSP developers to market their projects Shared periodic electronic resources information Made CCLF's standard technical assistance programming available to all NSP developers

Board of Directors John L. Tuohy, Esq. Chair Chapman and Cutler (retired) Susan Kaplan, Esq., Vice Chair The Law Project (retired) Charles Walls, Treasurer ComEd Mohammed M. Elahi, Secretary Andes Capital Group LLC Charles F. Daas City Solutions Toya Horn Howard, Esq. Real Estate Attorney Edward J. Hoynes, CPA Community Accounting Services Ed Jacob Neighborhood Housing Services of Chicago Rafael M. Le贸n Chicago Metropolitan Housing Dev. Corp. Glenn M. Mazade Charter One Bank Patricia Y. McCreary Seaway National Bank Raymond McGaugh, Esq. Kiwanja Redevelopment Fund Steven Quasny BMO Harris Bank Nancy Radner, Esq. Chicago Alliance to End Homelessness Matthew R. Reilein JPMorgan Chase & Co. Kathryn Tholin Center for Neighborhood Technology


Staff

CCLF Noteworthy Staff News CCLF External Relations Associate Emily Moen was recently named to the Board of Directors of the Lutheran Volunteer Corps, a national service organization that works in 13 cities across the country, placing more than 130 volunteers in year-long positions with nonprofit organizations. CCLF Welcomes Two New Staff Members CCLF recently welcomed two new Lutheran Volunteer Corps full-time staff members, Kallie Rollenhagen and Anuraag Bhadana. Kallie will be working primarily with the Technical Assistance team. A second-year LVC volunteer who spent her first year in Baltimore, Kallie is from Wells, MN and graduated from the University of Wisconsin - Milwaukee with a BA in Psychology and a minor in Architecture. Anuraag will work with the Finance and Administration team. He is originally from Mumbai, India, and recently graduated from Grinnell College with a BA in Liberal Arts with majors in Economics and French. Welcome, Kallie and Anuraag! Thank You to Funders and Investors For their recent grants, CCLF thanks the Polk Bros. Foundation and Bank of America Foundation. For their recent investments and renewals, CCLF thanks Northbrook Bank, Lake Forest Bank & Trust, Cole Taylor, Emmanuella Kenny, Greg Jeffries and two anonymous donors from Sustainability Group. Credit Memos: CCLF lends a record $8.7 million in 4 months Team4 Development LLC received $242,000, $385,000, $362,500, $198,000, and $175,000 construction loans to rehab properties in Auburn Gresham and Greater Grand Crossing as part of the City of Chicago NSP. St. Edmund's Court, LLC received $5,224,434 and $950,000 loans to rehab properties in Washington Park as part of the City of Chicago NSP. Breaking Ground, Inc. received $247,000 and $325,000 construction loans to rehab properties in Austin as part of the City of Chicago NSP. Blue Stem Cooperative received a $626,000 minipermanent mortgage for a 6-unit limited-equity cooperative in Logan Square. Thanks to Andrew A. Hamm of Katten Muchin Rosenman LLP for serving as CCLF's counsel for this transaction.

Calvin L. Holmes President Jane I. Ames Vice President, Finance & Administration Rhonda McFarland Vice President, Lending Elizabeth Richards Vice President, Technical Assistance & Sustainability Mark Fick Senior Loan/Program Officer Paul Gakhal Senior Loan/Program Officer Clarice Norin Loan Closing/Portfolio Officer Juanita Walker Office Manager Emily Moen External Relations Associate Jessica Wozniak Finance & Administration Associate Kate McInerney Lending Program Assistant Lincoln Stannard Lending Program Assistant Anuraag Bhadana Finance & Administration Assistant Kallie Rollenhagen Technical Assistance Assistant

Credits Editor Emily Moen Printer Salsedo Press

Donate to CCLF You can support our work with a secure online donation on our website.

Chicago Community Loan Fund (CCLF) | 29 East Madison St, Suite 1700 | Chicago | IL | 60602

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http://cclfchicago.org/sites/default/files/sponsors/3rd%20Quarter%202011.pdf

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