CDFI Advising
Community Development Financial Institution Advisory Services
What We Do
Community Development Financial Institutions (CDFIs) are powerful vehicles to move capital to underserved areas and are uniquely equipped to help communities flourish.
At their core, CDFIs provide responsible financial products and services to people and communities facing barriers to affordable capital access. CDFIs reach beyond monetary influence, fostering economic opportunity and revitalizing neighborhoods. Hope Community Capital works with CDFIs across the country to deepen their financial capacity and scale social impact.
Hope Community Capital provides a comprehensive suite of services to CDFIs, including:
- Underwriting Assistance using triple bottom line approach. We specialize in all manner of housing underwriting, community facilities, and small business in rural and metro communities;
- CDFI Fund application assistance including: Capital Magnet Fund, Financial Assistance Award, Technical Assistance Award, and New Markets Tax Credits;
- CDFI Fund capitalization strategy: we work with CDFIs to identify and secure public and private sources of lending capital.
- CDFI Fund reporting, specific guidance in TLR reporting and NMTC compliance generally
- CDFI Certification Applications: we work with organizations to become CDFIs and assist currently certified CDFIs to become recertified.
- Product and Services Development: we assist CDFIs in developing new products (or modifying existing products) to better serve their target market.
- Strategic Planning: We work with CDFIs to develop 3 to 5 year strategic plans using the Technology of Participation strategic planning tool.
- Coming soon: CDFI Leadership Mastermind facilitated by Carrie Sanders, CEO of Hope Community Capital
Objectives
Products Identification
Growth Plan
Financial Strategy
- Product Expansion
- Geographic Expansion
- Profitability Considerations
- Risk Considerations
- Diversification (revenue and risk)
- Diversify/expand sources of capital
- Expand impact through new loan types/services
- Expand geographic footprint/focus (i.e., target market, target population)
- Establish Growth Parameters and Maximum Risk Tolerance
- Minimum profitability/pricing parameters for product types and enterprise-wide
- Minimum capital ratios (debt to net asset ratio, net assets/total assets, etc.)
- Liquidity ratios
- Establish maximum loan portfolio risk tolerance (i.e., changes to portfolio risk rating)
- Analyze financial condition based on historical trends and financial forecasts
- Conduct probability analyses of different growth strategies that meet the objectives and parameters
- Capital structure, product offerings, portfolio composition, risk profile, revenue streams and concentration, and profitability
- Examine internal, external, quantitative, and qualitative changes with potential impact on the organization
- Narratives, diagrams, and financial models that represent potential growth strategies