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DONOR PROFILE: US Bank
"What makes a bank successful in the long run is having a successful community," says Ken Kirkpatrick, President of US Bank in Washington. When banks invest in areas like economic development, helping small businesses grow, and reducing crime, it makes life better for everyone."
One of the challenges for banks that want to help in the housing and community development area is sifting through project proposals and communicating with grassroots organizations that often lack experience with private financing for housing development.
"There are lots of communities and community organizations out there that are interested in getting help," Kirkpatrick said. "Impact Capital knows them, knows their needs. We count on Impact Capital to review projects and provide assurance that groups have strong leadership."
US Bank in Washington, originally People's Bank, has a longstanding record of community involvement throughout the state. The bank has invested in affordable housing and community services in a major way. In November, US Bank renewed its $1 million equity investment with Impact Capital through 2014.
"We saw the widespread effect of that original loan and we are more than happy with our investment," Kirkpatrick said. "Impact Capital provides great leverage."
US Bank's original equity investment was leveraged to provide 66 bridge loans for housing and community development totaling more than $43 million. Those loans resulted in 1,944 affordable rental units and 342 affordable homes in 17 Washington counties. The repayment rate for those loans has been 100 percent success rate that Ann Melone, US Bank Vice President of Commercial Lending, attributes to Impact Capitalís high-touch lending.
Kirkpatrick said that current economic stress in the lending and housing fields has strengthened US Bank's commitment to support affordable housing and community development.
"There's a strong need for more affordable housing, but now there are fewer federal loans and bank loans available," Kirkpatrick said. "Communities are counting on Impact Capital."
US Bank's involvement with Impact Capital dates back to 2004, and it goes well beyond equity investment.
"Through Ann Meloneís role on the board of directors, we're providing leadership," Kirkpatrick says. "She's involved in evaluation of Impact Capital projects, and in helping them set overall direction."
In addition to equity lending, US Bank works with Impact Capital to provide training for nonprofits, and supports proposals to secure funding from other lenders.
"It takes vision and passion to get people to collaborate, and Impact Capital and Heyward Watson have that. It's what sets them apart," Kirkpatrick said. "Impact Capital does a superb job of filling a role that traditional banks find difficult."