City First Bank utilizes an array of lending programs to further its community development mission. These programs and their actual and potential impact are described below.

Community Development Financial Institutions Fund - CDFI Fund

• Total of $203 million in NMTC authority in three competitive cycles
• $4 million in cash awards through the Bank Enterprise Award, BEA Program
  • 2000: $1.5 million
  • 2002: $2 million
  • 2005: $500,000
• $4.1 million in financial and technical assistance awards
  • 2001: SECA grant of $135,000 for technology improvements
  • 2002: $2 million capital infusion through non-voting stock purchase
  • 2004: financial assistance award to support multi-family lending and stronger presence in Prince George’s County 

DC Department of Housing and Community Development – SAFI

• $5 million cash collateral used to enhance credit for the acquisition and pre-development of affordable housing
• Program targeted to a pre-screened group of non-profit borrowers for eligible projects
• Currently approximately $2.0 million in funds are outstanding, with remaining $3.0 million still available for loans

Cooperative Assistance Fund – CAF

• Partnership established in 2001 to provide cash collateral for credit to small businesses with potential to create assets and create jobs
• $200,000 deposit used to leverage City First financing at 5.32:1, currently four loans are outstanding totaling $372,000
• In aggregate, about 56 new jobs have been created
• Proposal to increase deposit to $1 million under consideration

Federal Home Loan Bank of Atlanta – FHLBA

• Affordable Housing Program offers grants and low interest loans for development or preservation of affordable housing
  • Highly competitive process with funds available only twice a year
  • Substantial compliance and monitoring responsibilities
  • Currently $60,000 in direct subsidies have been provided for transitional shelter
• Other products available are more readily accessible and provide a discount on cost of funds that can be passed through to the customer, but not used by City First
  • CIP: Community Investment Program offers discounted funds at 5 to 21 basis points below regular advance rates with fixed 20 year term and option of interest only payments
  • EDGE: low rate advances with flexible terms to support eligible community development projects
  • Economic Development Program for job creation and community revitalization, offers flexible terms on advances in low and middle income communities

Small Business Administration - SBA

• SBA offers variety of credit enhancement and collateral support products to small businesses, with some aimed specifically at job creation and economic development
  • Currently 12 loans on the books totaling $2.5 million

Statistics

• CFB offers below market rate loans generally to non-profit, mission related organizations, generally with cash support
  • Currently 11 below market rate loans on books totaling $10.7 million
• Credit enhancements such as cash collateral and guarantees from third parties, allow City First to reach neighborhoods that need financing most.  SBA, SAFI and CAF provide such enhancements.
  • Currently 27 credit enhanced loans on the books, totaling $8.8 million.
• Current loan portfolio is $88 million, of which over 20% is specifically classified as community development/mission oriented.