Community Lender IFF Receives Grant from Starbucks and Opportunity Finance Network's "Create Jobs for USA" Program

CHICAGO, Nov. 2, 2011 /PRNewswire-USNewswire/ -- A local community lender today received a $231,000 capital grant from the Create Jobs for USA Fund, a collaboration between Starbucks and Opportunity Finance Network (OFN). The funds will help IFF create and sustain jobs in the Midwest as part of a national campaign to support small, community businesses.

IFF is one of just 28 community development financial institutions (CDFIs), in the nation to win a grant in the inaugural funding round. The grant was made possible by a $5 million seed contribution from the Starbucks Foundation. The Fund expects to raise tens of millions of dollars more, according to a spokesman, and 100 percent of these donations will go to CDFIs to finance underserved community businesses, and help create and sustain jobs in underserved communities.

Yesterday, The Create Jobs for USA Fund started collecting donations at www.CreateJobsforUSA.org and at nearly 7,000 company-operated Starbucks across the country. The donations will support organizations lending for job creation and retention across the U.S. CDFIs that are Members of Opportunity Finance Network (OFN) will compete for these funds on a rolling basis.

"Create Jobs for USA is making it possible for Americans who have $5 to share help people who don't have $5 to spare by creating and retaining jobs in their communities," explained Mark Pinsky, President and CEO of OFN. "IFF received this grant because it has demonstrated that it will provide financing that is good for community businesses and good for communities."

"We're pleased that Starbucks recognizes the important work that CDFIs are doing, and honored that the Create Jobs for USA Fund has made a first-round grant to us," said Joe Neri, CEO at IFF. "Create Jobs for USA is unprecedented for the CDFI industry. It is shining a national spotlight on our work and will help IFF to create and sustain jobs in its five-state Midwest region, including Illinois, Indiana, Iowa, Missouri, and Wisconsin."

CDFIs provide financing to community businesses in markets that are underserved by traditional lending institutions, including to small businesses, microenterprises, nonprofit organizations, commercial real estate developers, and affordable housing developers. All of these community businesses help to create and sustain local jobs. Examples of how IFF loans are supporting job creation in the Midwest include:

A $1.5 million loan to Milwaukee Health Services, Inc. (MHSI), a Federally Qualified Health Center that provides health care services to families on Milwaukee's north side, to renovate its Martin Luther King Heritage Health Center site and add a 9,000 square foot addition. IFF partnered with PNC Bank on the project, which will include 36 medical exam rooms, 10 dental operatories and serve 14 percent more patients. MHSI's currently has 219 full-time and 29 part-time employees; the expansion is expected to add 16 more full-time employees.

A $1 million loan made in partnership with Partners for the Common Good to the LEARN Charter School Network in Chicago to make significant renovations to a vacant parochial school building that includes energy efficient features that will cut down on energy use and cost, as well as create a healthy learning environment for students. The project funded by IFF's loan created dozens of good-paying construction jobs and 28 full-time staff jobs at the school. It also enabled 550 new student slots to be created.

A $200,000 loan to Project Inc. in St. Louis to purchase equipment and make building renovations necessary to expand their business operations to include a new secure document destruction (SDD) line called Decycle It!. Project Inc. works to improve the quality of life for individuals with developmental disabilities by providing long-term, dignified employment. Project Inc. currently provides employment for 123 individuals. The expansion supported by IFF's loan created 8 new full-time positions.

Community business owners who would like to learn more about the program, or apply for a loan, can get more information at: http://opportunityfinance.net/findacdfi.

SOURCE IFF