Capital Plus Financial makes initial draw from $125 million Treasury bond

Rhea-AI Summary

Crossroads Impact Corp (CRSS) announced that its subsidiary, Capital Plus Financial (CPF), made an initial draw of $8 million from a $125 million bond granted by the U.S. Treasury's CDFI Bond Guarantee Program.

This funding is aimed at refinancing higher-cost leverage used for mortgages, supporting homeownership in Hispanic communities. CPF is one of only five Community Development Financial Institutions (CDFIs) to receive this bond, part of a broader $355 million initiative by the Treasury to assist distressed communities, enhancing their capacity to provide affordable housing.

Positive

• CPF's draw of $8 million will refinance higher-priced leverage for mortgages, potentially reducing costs.
• The bond is part of a $355 million initiative, indicating strong federal support for CPF's mission.
• As one of five selected CDFIs, CPF gains a competitive advantage in access to capital for underserved communities.

Negative

• None.

The $8 million draw will further CPF's mission of providing homeownership within Hispanic communities

DALLAS, March 13, 2023 /PRNewswire/ -- Capital Plus Financial, a community development financial institution, certified B Corp and wholly owned subsidiary of Crossroads Impact Corp, made the first draw on its $125 million bond from the United States Treasury Department's CDFI Bond Guarantee Program.

CPF made the $8 million draw Feb. 28. The cash proceeds will be used to refinance higher-priced leverage originally used to fund mortgages originated by the company.

"The cash proceeds from our initial draw will continue our efforts of expanding opportunities to qualified homebuyers within the Hispanic community," said Farzana Giga, the company's chief financial officer. "We are excited to continue the mission-driven work of CPF and provide the opportunity for underrepresented populations to own affordable homes."

CPF was awarded the bond last year, one of three guarantees totaling $355 million that the U.S. Treasury agreed to issue under the fiscal year 2022 round of the program, which injects new and substantial capital into the nation's most distressed communities.

As a bond recipient of the highly selective and competitive program, CPF will better serve its borrowers by providing long-term, fixed-rate cost of debt capital. Capital Plus Financial is one of only five CDFIs nationwide selected.

About Capital Plus Financial
Certified by the U.S. Treasury as a CDFI, Capital Plus Financial believes minority-owned small businesses and people of color are entitled to equal opportunities in the banking system and is committed to breaking down barriers in communities that have been disenfranchised, underserved, underbanked, and underfunded. Capital Plus is the wholly owned subsidiary of Crossroads Impact Corporation (OTCQX: CRSS), a holding company focused on investing in businesses that promote economic vitality and community development.

About Crossroads Impact Corp
Crossroads Impact Corp (OTCQX: CRSS) Crossroads Impact Corp's mission is to promote economic vitality through community development and equitable access to capital; harnessing the power for good to tackle systemic issues within underserved communities. Building on our history of serving minority individuals and small businesses through environmental and responsible social lending, we look to be the leader in providing innovative and sustainable lending solutions.

For information, contact
Andy Boian
dovetail solutions
303.868.0085 office
415.404.2539 cell
aboian@dovetailsolutions.com

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SOURCE Crossroads Impact Corp

FAQ

What is Crossroads Impact Corp (CRSS) doing with the $8 million draw?

Crossroads Impact Corp's subsidiary, Capital Plus Financial, is using the $8 million draw to refinance higher-cost leverage used for mortgages.

How does the $125 million bond impact Crossroads Impact Corp (CRSS)?

The $125 million bond from the U.S. Treasury's CDFI Bond Guarantee Program provides long-term, fixed-rate capital, enhancing CPF's ability to serve borrowers.

When did Capital Plus Financial make the $8 million draw?

Capital Plus Financial made the $8 million draw on February 28, 2023.

What is the purpose of the bond guaranteed by the U.S. Treasury for CRSS?

The bond aims to inject capital into distressed communities, supporting affordable homeownership initiatives.

How does this bond support the Hispanic community according to CRSS?

The funding will help expand opportunities for qualified homebuyers within the Hispanic community through affordable loans.