Initiative Capital has assembled a unique $11 million banking syndication designed to promote economic development in low-resource communities throughout North Carolina. Announced in a press conference on December 6, 2006, the syndication is historic because it includes not only some of the state’s largest and most recognizable lending institutions, but all of its minority-owned banks as well. This represents a first for North Carolina — and perhaps the nation. The institutions and the amounts they have committed are: Wachovia Bank ($2 million) Branch Banking & Trust ($2 million) First Citizens Bank ($2 million) SunTrust Bank ($2 million) Mutual Community Savings Bank ($1 million) Mechanics and Farmers Bank ($1 million) Lumbee Guaranty Bank ($1 million) . The primary goal of Initiative Capital is to spark investment in low-wealth communities throughout the state. These communities do not lack purchasing power, but rather the ability to effectively harness that power. As a result, Initiative Capital will be investing in social enterprises that have the potential to reverse this trend. Social enterprise, or mission-driven business, is vital to the success of the community economic development (CED) industry for several reasons. First, locally owned commercial ventures support and sustain an area’s economy by keeping resources in that community, thus increasing property values and encouraging further investment. In addition, the revenues generated from these social enterprises are then reinvested into the
Initiative Capital supports social entrepreneurship and the entire CED industry by offering three unique loan products: Permanent Financing, Land Acquisition and Flexible Credit. |
community via CED projects such as affordable housing, day care centers and health clinics.
