Press Release

Program Offers Loans to Businesses Seeking to Expand or Relocate to Inglewood

Inglewood, CA – The Federal Home Loan Bank of San Francisco (FHLBSF) today helped launch an economic development program that will attract new businesses to Inglewood, assisting existing businesses to expand and create new jobs.

Sponsored by the City of Inglewood’s Office of Economic and Business Development, the FHLBSF is working with the City, the U.S Department of Housing and Urban Development (HUD), and three member financial institutions to make $45 million in loans available for businesses seeking to expand or relocate to Inglewood.

"This project demonstrates the role that the Federal Home Loan Bank of San Francisco plays in revitalizing communities throughout our three state region of Arizona, California, and Nevada," said Lawrence H. Parks, a Senior Vice President at FHLBSF. "We are forging public-private partnerships that are having an impact on the lives of many citizens, and helping to rebuild communities."

The Economic Development Loan Fund was launched this morning at Inglewood City Hall. Participants thanked Rep. Maxine Waters (D-CA), who was instrumental in getting HUD to approve a $10 million Section 108 loan for the project. Three FHLBSF member financial institutions committed to provide $35 million in loans, with Far East National Bank providing $15 million, First State Bank of California providing $15 million, and Community Bank, Pasadena providing $5 million. City officials anticipate that loans will be used for restaurants, commercial and industrial business expansion, retail outlets and health and human services.

Under HUD guidelines, for each $35,000 loaned, one new job must be created. Therefore, seven jobs would be created for each minimum loan of $250,000. The maximum loan is $1 million. The loans can be used for land acquisition, construction, renovation or remodeling, and equipment purchases.

Under the program, each business seeking funds must invest at least 10% equity into their project. Then, the city, with its HUD funds, will loan up to 40% of the project costs; and a financial institution will loan at least 50% of the remaining costs. Borrowers can seek their contributions from one of the three FHLBSF member institutions or use their financial institution of choice. The participating banks are committed to providing prospective borrowers with favorable terms and below market rates, depending on credit.

"This program will help expand economic activity in Inglewood," said Jim Yacenda, Vice President, Community Investment Officer at FHLBSF. "The businesses that expand or relocate in Inglewood will build a larger tax base for the city, make more funds available for city services, and they will create new jobs. This is a win-win scenario for all the participants."

The Federal Home Loan Bank of San Francisco

The Federal Home Loan Bank of San Francisco delivers low-cost funding and other services that help member financial institutions make home mortgages to people of all income levels and provide credit that supports neighborhoods and communities. The Bank also funds community investment programs that help members create affordable housing and promote community economic development. The Bank serves and is owned by 341 commercial bank, savings institution, credit union, thrift and loan, and insurance company members headquartered in Arizona, California, and Nevada.

Contact:
Dwight Alexander, (415) 616-2678
alexandd@fhlbsf.com

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