WASHINGTON, D.C. – U.S. Sen. Sherrod Brown (D-OH) today introduced legislation that would promote economic and community development through increased financial services to low-income communities across Ohio. The change would designate National Consumer Cooperative Bank (NCB) Capital Impact as a community development financial institution (CDFI).
“Access to affordable credit and capital is the cornerstone of rebuilding communities and driving economic growth,” Brown said. “This legislation will fund economic development, finance affordable housing, and provide financial assistance to communities that need it most in Ohio.”
NCB Capital Impact is a non-profit financial institution with a mission to improve communities through increased investments in education, health care, housing, and small businesses. While the bank is dedicated to promoting development in areas that would otherwise lack access to financial resources, the bank is ineligible for federal funding due to a technicality.
Under the National Consumer Cooperative Bank Act, the parent bank of NCB Capital Impact was entrusted with strengthening communities through financial services to assist cooperatives. Due to the fact that this parent bank works with cooperatives, NCB Capital Impact is ineligible to receive federal funding even though it meets CDFI eligibility requirements on its own.
Similar to other CDFIs that receive federal funding, NCB Capital Impact has a narrow focus on providing loans and services to underserved populations and communities. Increased funding would help the financial institution build on its previous efforts to serve low-income communities throughout the state.
Since its inception, NCB Capital Impact has provided more than $553 million to support low-income populations. According to the financial institution, NCB Capital Impact has invested over $250 million for education facilities; helped finance 33,000 affordable housing units; and created 25,000 jobs for low-income individuals.
Among projects financed by the institution are renovations of schools in Columbus, Cleveland, Toledo, and Cincinnati; the Miami-Oxford Organic Network Co-op, which will provide inexpensive, healthy food to underprivileged communities; and the Green House, which is a long-term, skilled nursing care center for senior citizens throughout Ohio.
Designation of NCB Capital Impact as a CDFI will enable the institution to work with other federal agencies, public organizations, and private institutions to raise capital and make important investments across towns and cities in Ohio.