CDFI Grant Awarded to ISF
On July 18, 2011 Illinois Service Federal Savings and Loan Association (ISF) received a $1,500,000 financial assistance award of permanent capital from the U.S. Department of the Treasury Community Development Financial Institution (CDFI) Fund. Illinois Service Federal Savings and Loan Association (ISF) is a certified CDFI established in 1934. ISF offers home mortgages and home improvement loans for first-time homebuyers, consumer and business loans, and other financial services to a target market in Cook County, Illinois. ISF will use its Financial Assistance award as loan loss reserves and secondary capital in order to increase homeownership and business lending in its target market.
The CDFI Fund received applications from 393 organizations requesting nearly $466 million in Financial Assistance (FA) and Technical Assistance (TA), with 381 of the applications deemed eligible to advance to the review process. The CDFI Fund made 155 awards totaling over $142 million to organizations located in 40 states and the District of Columbia. Of the awardees 125 loan funds, 25 credit unions, three venture capital funds received awards, and ISF was one of only two depository institutions/holding companies to receive an award. ISF was one of three Chicago based CDFIs to receive an award including IFF and the Chicago Community Loan Fund.
The award was announced at a ceremony on July 18 by CDFI Fund Director Donna Gambrell, along with U.S. Senator Richard Durbin and U.S. Representative Danny Davis, at the Fulton-Carroll Center in Chicago. "Given the many economic hardships currently experienced in many low-income communities across the country, I am pleased to see this historic investment and commitments from the Obama administration in leading new investments in small business, especially in Chicago to rebuild our communities," said Representative Danny Davis.
ISF projects that the FA funds will leverage $27 million in lending, including 120 first time home mortgages, 32 commercial real estate loans and 23 business loans resulting in almost 100 new jobs and almost 80,000 square feet of real estate development.
Norman J. Williams, Chairman and CEO, said "This award demonstrates the value that the government of the United States places on providing needed loans and banking services to underserved and economically challenged communities. We accept this award with renewed vigor and commitment to serving the community that entrusts us with their savings and knows that we in turn will make as our first priority the reinvestment in that same community."