On May 27, in Jackson, Ohio, my staff and I ventured to picturesque Jackson, Ohio, located in the Appalachian foothills, to celebrate the economic development success of another fruitful partnership—Ohio Basic Minerals.

Patrick McDonald, Ohio Basic Minerals CEO, and Jeff Schrader, founder of the original Schrader and Sons Sand and Gravel, spoke to the crowd of local and state dignitaries, Ohio Basic Minerals employees and business partners. Mr. Schrader cut the ribbon to symbolize the grand opening of the newly revitalized and renovated facility, funded by more than $2.45 million from our Finance Fund Capital Corporation (FCAP) and New Markets Tax Credits (NMTC). The event made a splash in the media—read more about Ohio Basic Minerals’ success and exciting new developments

Columbus Dispatch
May 24, 2010
Minerals plant expansion to lead to 30 new jobs

Jackson County Times-Journal
May 25, 2010
Ohio Basic Minerals celebrates expansion

Columbus Business First
May 28, 2010
Finance Fund helps sand, gravel maker expand in southeast Ohio

Jackson County Times-Journal
May 28, 2010
OBM celebrates plant expansion

Finance Fund was able to provide more than $2.45 million from our Finance Fund Capital Corporation (FCAP) and the New Markets Tax Credits (NMTC) resources for expansion and new equipment for the sand and gravel facility. This will not only help OBM compete in new markets and increase revenue, but will enable the company to hire new employees and stimulate Jackson’s economy.

This Thursday we’ll proudly join OBM in celebrating the new facility with a ribbon-cutting ceremony, tours of the facility and special before and after displays. Several local and state dignitaries will be in attendance, in addition to company CEO, president, employees and business partners.

Here’s to Ohio Basic Minerals—another Ohio economic development success story!

On Wed., April 21, we proudly hosted several state legislators, community leaders and Finance Fund project partners at the Capital Club in downtown Columbus. It was an excellent opportunity to share how Finance Fund has positively impacted some of the state’s most distressed communities.

We highlighted four partnership “success stories,” including Ohio Basic Minerals in Jackson; Save-a-Lot grocery store in Columbus; Noble Learning Center in Caldwell; and Miami Valley Child Development Centers (MVCDC) in Dayton. Each project touted key Finance Fund goals – job creation, safe childcare access and neighborhood revitalization.

We shared important information about the New Markets Tax Credits (NMTC) program. Last October, we were awarded $50 million in NMTC funding, with $30 million designated specifically for non-metropolitan, rural areas in Ohio. Funding is still available for qualifying projects – we strongly urge those interested to contact us for more information on a possible partnership with us.

We thank our distinguished guests for their presence, and look forward to new partnerships that will lead to more jobs, revitalized communities and safer access to care.

We are characteristically small business lenders and have been for more than 23 years.

Our mission is to move resources into low-income communities. We have experienced growth in assets (from $50,000 in 1989 to $160 million in 2009) and have funded more than 2,400 projects that have resulted in significant impact and dramatic increase in demand.

Due to this demand, Finance Fund has begun the careful exploration to purchase a national bank charter. The bank would be an affiliate of Finance Fund and will maintain the mission of Finance Fund, which is to invest in distressed communities. Its purpose will not be to compete with other local, regional and statewide banks. Simply, the purchase of a bank will enable us to maintain our altruistic mission and collaboration with a bank’s profit mission.

On Feb. 18, 2010, the inaugural meeting of the BISC (Bank Initiative Steering Committee) was held.  This group of experienced, mission-focused individuals debated at length, the pros and cons of types of banks, timing and potential obstacles to this endeavor.  It was unanimously decided that a professional consultant would be sought-out to guide the BISC through the process of potential bank identification, and acquisition.  To that end, an official RFP has been issued.  The RFP, which can be found here, details the scope of work and minimum requirements desired of prospective candidates.

This begins yet another exciting chapter for Finance Fund.  As this exploration unfolds, look for further details of our progress.

Jennifer Deuber (Director of Communication) and Valerie Heiby (Director of Development) were with me on the trip and in spite (or because) of their best efforts I was re-elected to the Coalition’s board of directors. In addition the board, through some slip-up in procedure, ended up electing me as Treasurer of the board. Though I ran a covertly non-existent campaign that backfired, I am honored to accept this role.

It is an exciting time for CDFIs. They are being identified and recognized as a part of the nation’s financial services industry that has long been a stable and credible provider of community lending. That recognition is resulting in additional resources and confidence as a player in economic recovery of the country. We heard at the Institute that the Obama administration believes that CDFIs have a key role in recovery and ongoing community stability. It is our hope that Congress will come to the same conclusion.

Finance Fund is honored to be part of this group as a trusted state leader and visionary in the realm of early childhood care centers and schools and financial assistance. In addition to myself, the group includes professionals from Miami Valley Child Development Centers, Inc., Ohio Department of Job & Family Services, Federal Reserve Bank, Ohio Office of Budget & Management, the Ohio Department of Education and others.

The workgroup will provide insights and recommendations to Gov. Strickland by the end of this April – in time for consideration in the development of the next biennial budget.

After 23 years serving Ohio’s under-privileged and low-income neighborhoods and communities, we’ve set ourselves apart as a trusted financial intermediary that is considered a state leader and visionary. Since 1987, Finance Fund has invested more than $96 million in housing, economic development, childcare and Head Start projects throughout Ohio, leveraging more than $759.9 million. This investment was accomplished through more than 2,457 awards to community-based organizations throughout the state as part of Finance Fund’s core programs. Partnerships have enabled low-income people access to more than 15,312 units of affordable housing, 8,991 full-time jobs, and 3,033 early care and education spaces (classrooms) for 69,377 children benefiting the lives of more than 116,000 Ohioans.

Recently, we helped fund two child care centers by providing grants and loans for re-construction and overhaul.

Noble Learning Center – Caldwell, Ohio
Availability, cost, safety, quality, and accessibility all added to the frustration of finding the right place – the comforting place to care for Noble County children. Finance Fund provided a grant for planning and for facilities improvement for Noble County’s newest (and only) child care center. The overhaul supported 20 construction jobs and the resulting child care center services 135 children and employs 15. Read more here.

MVCDC Kings Highway Head Start – Kings Highway
The Miami Valley Childhood Development Centers (MVCDC), encompassing Clark, Madison and Montgomery Counties, was in great need to purchase, update and improve their Kings Highway Head Start facility. Finance Fund stepped in with $1.05 million in New Markets Tax Credits funding toward the renovation, and an additional $429,000 federal grant. Today, more than 225 children are enrolled at the MVCDC Kings Highway Head Start, with a capacity of 240 students. Read more here.

Check back here for my updates on Early Childhood Financing Workgroup meetings. I look forward to sharing our progress.

Breaking Ground on Close to Home III

When our program team met Sharon Hartwig and Charlie Kunkel, co-owners of St. Lawrence O’Toole Gardens, we were inspired by their dream of reclaiming a vacant, historic building for their community.  We’re proud to announce that dream came one step closer to reality last Friday when Lawrence County’s only assisted living center to be called Close to Home III, broke ground on the site of the old St. Lawrence O’Tool Community Center.

Upon completion, Close to Home III will create 30 new jobs.

“Finding a new use for this important historic building is a point of pride for the Ironton community,” Charlie told me. “Lawrence County has needed an assisted living facility for quite some time. We look forward to bringing this new resource to the region.”

The Close to Home III project will rehabilitate the now vacant St. Lawrence O’ Toole Community Center, originally built in 1910 as the St. Lawrence School. Its owners, St. Lawrence O’Toole Gardens, will build a 8,316-square-foot addition and making structural and sidewalk improvements. Of the 30 positions created by the project, 16 will be filled by individuals of low or moderate income.

Finance Fund partnered with the developers at St. Lawrence O’Toole Gardens, LLC by providing $2.7 million in New Markets Tax Credits funding. Also funding this project were the Ohio Department of Development, with a $500,000 grant from the Community Development Block Grant Economic Development Program, and a loan from the Huntington, West Virginia-Ironton, Ohio Empowerment Zone, Inc.

We also thank the Ironton Tribune for their nice story about the event.  You can read it here.

Attendees enjoy the Finance Fund annual reception May 7.

Something about longevity peaks curiosity. Have you been here long? How old are you? That looks like a new dress? Worked here long?  This current curiosity stems from our recent propensity for immediate consumption -  because there was a point in time that longevity meant endurance – and endurance meant survival.

In our 22 years of stamina we have come together 20 times to talk and celebrate the idea that is Finance Fund. The idea is that anyone no matter what education, race, economic, or social status has the right to basic access to opportunity.  This year’s event was stellar in its essence a good mix of people, good food and drink, and great conversation.

We talk about anything and everything. About what we’ve done, what we’re doing, and what we will do. We talk about friends here and departed, times past and remembered, and future plans and aspirations. We did what we have come to do so well and that is join in the conversation. From conversation grows familiarity and familiarity accumulates knowledge and knowledge precipitates trust. Thursday night was a testimony to this concept. It’s always better to work with someone you trust and that is a reason to celebrate.

Dawn Hays receiving the Community Champion Award from Finance Fund's Jim Klein

Dawn Hays from Hahn Loeser Parks LLP was our largest individual donor helped fund projects throughout Ohio. At Hahn Loeser & Parks, Hays focuses her practice in the labor and employment and litigation areas and serves on the firm’s diversity committee. She is a frequent presenter on labor and employment issues, including the Fair Labor Standards Act.

Reginald Johnson receiving a Community Champion Award from Finance Fund's Jim Klein.

Reginald Johnson serves on Finance Fund’s Board of Directors and is a member of our Credit Review Committee.  Johnson played a key role in community development initiatives in 2008, by referring and partnering with Finance Fund on four New Markets Tax Credits projects. Johnson is also a member of Finance Fund’s board of directors and the CRC loan committee. Johnson is a vice president of Huntington National Bank and also senior asset manager of Huntington Community Development Corporation, where he is responsible for overseeing the due diligence and asset management of tax credit investments, venture capital and small business investment corporations. He is also the treasurer of the Greater Linden Development Corporation.

Patricia Barnes and Finance Fund's Jim Klein.

Last Thursday also included recognition of Patricia Barnes, Executive Director of the Ohio Community Development Corporation Association.  Patricia was a founding member of Finance Fund and a loyal Board member and partner, announced her plans for retirement from OCDC recently.  We are extremely grateful for her vision, leadership and service.

Lastly, I would be remiss not to thank those who took the time and effort to recognize my 20 years of service with Finance Fund.  I can truly say it’s been as fun as it has been rewarding. I’m honored to be a part of this amazing organization. – J.K.

William Graves, ODOD Community Development, Lt. Governor Lee Fisher, Jim Klein

For our first blog entry on our new web site, we’re thrilled to share the news of an initiative in partnership with the Ohio Department of Development.  No need to re-write the already written story about it -  I’ve included the traditional media materials below (including a podcast from Lt. Gov Fisher and myself).  I will editorialize to say that this unique partnership is a demonstration of our longstanding relationship with the Ohio Department of Development.  It delights us that we can help them be more creative in the delivery of solutions for Ohioans in need.

- JRK

New Initiative Provides Auto Financing for Work and Education

COLUMBUS, OHIO (February 3, 2009) – The Ohio Department of Development’s Office of Community Services along with the statewide organization Finance Fund are introducing the “Cars for Jobs and Diplomas” program. This new initiative is an effort to provide affordable used car financing and consumer assistance to approximately 60 low-income participants statewide. The Ohio Community Action Network will administer the program.

“Inadequate transportation is a major obstacle to finding and keeping a good job,” said Lieutenant Governor Lee Fisher, who also serves as Director of the Ohio Department of Development. “We believe that the Cars for Jobs and Diplomas program will serve as a helping hand in giving Ohioans the opportunity to save for a car, access quality education, and travel to and from work.”

The purpose of the Cars for Jobs and Diplomas Program is to provide qualifying participants an opportunity to purchase a vehicle enabling individuals to obtain or retain employment and/or education. The program serves as a financing component of local case management programs offered by agencies designated by the Ohio Department of Development’s Community Development Division, Office of Community Services.

The structure of this program will operate on a matching rate of 2:1. This means for every dollar saved in the participant’s qualified savings account, it will be matched with two dollars into a reserve account. Eligibility for this program will be determined by the local case management agency.

“We were honored that the Ohio Department of Development reached out to us once again to assist in the development and administration of the Cars for Jobs and Diplomas program,” said James R. Klein, CEO of Finance Fund. “This program will help families in distress take advantage of opportunities that will help move their lives forward.”

Podcast Quotes can be accessed through these links:
Lt. Governor Lee Fisher

James R. Klein, CEO of Finance Fund