LISC, Nationwide launch $20MM lending program to spur economic development in underserved Calif. communities
NEW YORK, Oct. 15, 2013 /PRNewswire-USNewswire/ -- Local Initiatives Support Corporation (LISC) is partnering with Nationwide on a new $20 million program to help jump-start businesses and community facilities in economically stressed areas of California.
The program aims to provide funding for a range of commercial developments, from early childhood education centers and community health facilities, to grocery stores, manufacturing sites and office space that anchor businesses and service providers to their neighborhoods. The program's initial loans are for charter school facilities that will serve 1,500 children in Los Angeles, Huntington Park and Santa Ana.
"Nationwide is more than a business. We are dedicated to giving back to the community and honored to be a part of this initiative that helps neighborhoods in need of additional support," said Ramon Jones, regional vice president, Nationwide Insurance. "We've made a commitment to increasing our outreach in California and this partnership with LISC is one that we hope will have an enormously positive impact."
LISC's collaboration with Nationwide is part of its broad agenda to improve the quality of life in struggling communities. Nationwide is providing the capital while LISC is sourcing the developments and managing the investments. LISC is working through its three local programs in the state—one each in the Bay Area, Los Angeles and San Diego—as well as through its national Rural LISC program, which funds projects throughout much of California.
Among the earliest transactions is a nearly $5 million loan to Alliance College-Ready Public Schools, a nonprofit charter management organization in the Los Angeles area with 22 schools serving 10,500 low-income children and youth. The organization is building a new 32,000-square-foot high school in Huntington Park with space for 600 students. Since its founding in 2004, some 95 percent of Alliance graduates have gone on to college, and thousands of students sit on its school waiting lists.
"We know economic development is critical to the recovery of disadvantaged neighborhoods," said Michael Rubinger, LISC president and CEO. "But the tight lending market makes financing businesses, schools and other core community assets difficult, especially in the low-income areas that need them most. Our collaboration with Nationwide helps us step in where the private market can't on its own. Together, we can help fuel significant, sustainable change in disadvantaged areas."
Nationwide Mutual Insurance Company, based in Columbus, Ohio, is one of the largest and strongest diversified insurance and financial services organizations in the U.S. and is rated A+ by both A.M. Best and Standard & Poor's. The company provides customers a full range of insurance and financial services, including auto insurance, motorcycle, boat, homeowners, pet, life insurance, farm, commercial insurance, annuities, mortgages, mutual funds, pensions, long-term savings plans and specialty health services. For more information, visit www.nationwide.com.
LISC combines corporate, government and philanthropic resources to help nonprofit community development corporations revitalize distressed neighborhoods. Since 1980, Since 1980, LISC has invested $12.9 billion to build or rehab 298,300 affordable homes and apartments and develop 49 million square feet of retail, community and educational space. For more, visit www.lisc.org.
Brandi Martin, Nationwide
614-249-3243 or firstname.lastname@example.org
Colleen Mulcahy, LISC
312-342-8244 or email@example.com
SOURCE Local Initiatives Support Corporation