KeyBank Provides $2 Million Loan to C3 Fund for the Advancement of Women and BIPOC Real Estate Investors

Rhea-AI Summary

KeyBank has provided a $2 million loan to C3's Impact Fund, a Chicago-based CDFI supporting BIPOC and female real estate investors in low and moderate income areas. The loan will help C3 Fund continue its mission of revitalizing neighborhoods and addressing wealth disparities. Since its inception, C3 Impact Fund has deployed over $50 million in loans and created more than 2,200 jobs in underserved communities.

KeyBank's Community Development Lending and Investment (CDLI) group, which finances projects across all 50 states, has earned 11 consecutive 'Outstanding' ratings on the Community Reinvestment Act exam. This partnership aligns with KeyBank's commitment to community development and affordable housing.

Positive

• KeyBank provided a $2 million loan to support underserved real estate investors
• C3 Impact Fund has deployed over $50 million in loans since inception
• C3 Fund has created more than 2,200 jobs in low to moderate income communities
• KeyBank has earned 11 consecutive 'Outstanding' ratings on the Community Reinvestment Act exam

Negative

• None.

Financial Analyst

KeyBank's $2 million loan to C3 Fund is a strategic move in the community development sector. This investment aligns with KeyBank's consistent "Outstanding" Community Reinvestment Act ratings, reinforcing their commitment to socially responsible banking. The loan's focus on supporting BIPOC and female real estate investors in low to moderate income areas could potentially yield positive PR and strengthen KeyBank's market position in community lending.

However, the $2 million loan is relatively small compared to KeyBank's $187 billion in assets, suggesting minimal direct financial impact on the bank. The real value lies in the potential for future growth in this sector and the strengthening of KeyBank's reputation in community development. Investors should view this as a long-term strategic move rather than an immediate profit driver.

Community Development Expert

This loan represents a significant step towards addressing wealth disparities and promoting economic inclusion. C3 Fund's track record of deploying $50 million in loans and creating over 2,200 jobs in low to moderate income communities demonstrates the potential impact of such initiatives. The focus on one to four unit properties is particularly noteworthy, as it targets a important gap in many urban housing markets.

The partnership between KeyBank and C3 Fund could serve as a model for other financial institutions looking to make meaningful investments in underserved communities. However, the success of this initiative will depend on C3 Fund's ability to effectively deploy the capital and support BIPOC and female investors in navigating the challenges of real estate development in these areas.

Real Estate Investment Analyst

This loan facility could have a ripple effect in the real estate market of low to moderate income areas. By providing capital to BIPOC and female investors for acquiring and rehabbing properties, it may lead to increased property values and improved housing stock in these neighborhoods. This could potentially create opportunities for both the investors supported by C3 Fund and other real estate stakeholders in these areas.

However, investors should be cautious about potential risks. The success of this initiative depends on the ability of new and small-scale developers to execute successful rehab projects in challenging markets. The $2 million loan, while significant for C3 Fund, may have impact on broader market trends. Long-term success will require sustained investment and support beyond this initial loan.

CLEVELAND, OH / ACCESSWIRE / August 28, 2024 / KeyBank Community Development Financial Institutions (CDFI) Lending and Investment Group has provided a $2 million loan to C3's Impact Fund.

C3 Fund is a Chicago-based CDFI that provides capital and technical assistance to BIPOC and female real estate investors looking to acquire and rehab one to four unit properties in low and moderate income areas. By providing the capital to grow and scale their businesses, C3 Fund meets the challenges small developers face operating in underserved communities.

"Homeownership is a key component for building strong communities, and we are delighted to extend this new credit facility to support underserved developers in revitalizing and stabilizing neighborhoods," said Brian Maddox, National Team Leader for KeyBank CDFI Lending and Investment Group. "C3 Fund has been a driver of capital to promote wealth creation, home ownership, and job creation within underserved communities in low to moderate income communities."

C3's mission is centered around building stable communities. Since inception, C3 Impact Fund has deployed more than $50 million in loans and created over 2200 jobs in low to moderate income communities.

"We are grateful for KeyBank's support of our work to transform blighted communities into thriving communities," said Tiffany Taylor, C3 Fund's Executive Director. " KeyBank's loan will enable C3 Impact Fund to make targeted investments that support us transforming distressed neighborhoods, creating local jobs, and addressing wealth disparities."

About KeyBank Community Development Lending and Investment

KeyBank Community Development Lending and Investment (CDLI) finances projects that stabilize and revitalize communities across all 50 states. As one of the top affordable housing capital providers in the country, KeyBank's platform brings together construction, acquisition, bridge-to-re-syndication, and preservation loans, as well as lines of credit, Agency and HUD permanent mortgage executions, and equity investments for low-income housing projects, especially Low-Income Housing Tax Credit (LIHTC) financing. KeyBank has earned 11 consecutive "Outstanding" ratings on the Community Reinvestment Act exam, from the Office of the Comptroller of the Currency, making it the first U.S. national bank among the 25 largest to do so since the Act's passage in 1977.

About KeyCorp

KeyCorp's roots trace back nearly 200 years to Albany, New York. Headquartered in Cleveland, Ohio, Key is one of the nation's largest bank-based financial services companies, with assets of approximately $187 billion at June 30, 2024. Key provides deposit, lending, cash management, and investment services to individuals and businesses in 15 states under the name KeyBank National Association through a network of approximately 1,000 branches and approximately 1,300 ATMs. Key also provides a broad range of sophisticated corporate and investment banking products, such as merger and acquisition advice, public and private debt and equity, syndications, and derivatives to middle market companies in selected industries throughout the United States under the KeyBanc Capital Markets trade name. For more information, visit https://www.key.com/. KeyBank is Member FDIC.

About C3 Fund

C3 Impact Fund, founded in 2017 provides short term acquisition and rehab loans to BIPOC and women real estate investors. C3 is headquartered in Chicago and have expanded to Texas, North Carolina, Massachusetts, and Florida. For more information about C3 Impact Fund, visit www.c3.fund.

CONTACT:
Laura Mimura
216-471-2883
Laura_J_Mimura@KeyBank.com

View additional multimedia and more ESG storytelling from KeyBank on 3blmedia.com.

Contact Info:
Spokesperson: KeyBank
Website: https://www.3blmedia.com/profiles/keybank
Email: info@3blmedia.com

SOURCE: KeyBank

View the original press release on accesswire.com

FAQ

What is the amount of the loan KeyBank (KEY) provided to C3 Fund?

KeyBank provided a $2 million loan to C3's Impact Fund.

Who does C3 Fund primarily support with its loans?

C3 Fund primarily supports BIPOC and female real estate investors looking to acquire and rehab properties in low and moderate income areas.

How much has C3 Impact Fund deployed in loans since its inception?

Since inception, C3 Impact Fund has deployed more than $50 million in loans.

How many jobs has C3 Fund created in low to moderate income communities?

C3 Fund has created over 2,200 jobs in low to moderate income communities.