Lake City Bank is investing $750,000 in the Community Investment Fund of Indiana (CIFI). CIFI is a Community Development Financial Institution (CDFI) serving the state of Indiana. Lake City’s investment gives CIFI additional money to make loans to historically underserved entrepreneurs and small businesses that lack access to capital and do not qualify for bank loans.
CIFI is funded by grants and loans from federal agencies, Indiana banks and other business organizations. CIFI lends operating and expansion capital to Indiana’s small business owners who cannot get traditional bank financing. Many are from low to moderate income populations and include minority-owned, or newer businesses that need additional funding to support growth. As of the end of 2018, CIFI has loaned $3.4 million and created or sustained more than 120 jobs while providing assistance to more than 90 small companies.
“Our identity as a community bank is firmly engrained in the culture at Lake City Bank,” said David M. Findlay, President and Chief Executive Officer. “As individuals and as an organization, investing in our communities is important to us, and CIFI of Indiana is a perfect way for us to help other businesses thrive.”
Since 1872, Lake City Bank has grown to include 50 branches in northern and central Indiana, and $4.9 billion in assets. CIFI programs fit Lake City Bank’s focus on serving businesses and its commitment to support underserved communities.
Phil Black, CIFI’s executive director, says Lake City Bank’s investment is known technically as an Equity Equivalent Investment. CIFI can count that investment as equity as it builds its balance sheet for further investment from financial institutions and government agencies. CIFI uses funding from Lake City Bank — and other banks — to extend the reach of its bank partners for loans to small businesses too risky for traditional bank financing. Under the federal Community Reinvestment Act (CRA) banks can benefit from making investments in organizations such as CIFI.
Black says, “CIFI is grateful for Lake City Bank’s confidence in taking us on as a partner in financing under-served and under-capitalized local businesses. This will help us assist more people in achieving their goals and graduating to regular commercial bank financing.”
Black continues, “Many of our borrowers are the smallest companies that request loans of $10,000 to $50,000 for supporting general working capital needs. They fall under the radar of many other lending programs due to the small size of the loan or the lack of a small business track record.”
Created in 2010, CIFI was formed through an initiative by the Indiana Lieutenant Governor’s Office and by an investment from the Indiana Housing and Community Development Authority (IHCDA).
Kristin Pruitt, Executive Vice President, Chief Administrative Officer and General Counsel for Lake City Bank, serves on CIFI’s 12-member Board of Directors. She was elected in 2012 and is currently an officer of the CIFI board, serving as secretary.
Community Investment Fund of Indiana (CIFI) (www.capitalizingindiana.org) provides loans and access to community development services to small businesses, low-income individuals, economic development groups and housing developers in low-and-moderate income areas of Indiana. CIFI is a private non-profit lender funded by banks and other members of the Indiana business community. Banks can earn a CRA (Federal Community Reinvestment Act) Credit for investing in CIFI. CIFI has loaned (need new number) $2.6 million to more than 30 Indiana companies, creating or saving over 100 jobs.
CIFI is co-managed by Cambridge Capital Management Corp. of Indianapolis. For 35 years, Cambridge Capital has provided non-traditional financing to small businesses located throughout Indiana. (www.cambridgecapitalmgmt.com)
Lake City Bank (www.lakecitybank.com), a $4.9 billion bank headquartered in Warsaw, Indiana, is the fifth largest bank headquartered in the state, and the largest bank 100 percent invested in Indiana. Lake City Bank operates 50 branch offices in northern and central Indiana, delivering technology-driven solutions in a client-centric way to individuals and businesses. The bank is the single bank subsidiary of Lakeland Financial Corporation (Nasdaq Global Select/LKFN). For more information visit www.lakecitybank.com.