CAP Services’ Community Assets for People (CAfP) LLC was recently recertified as a Community Development Financial Institution (CDFI) by the U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund).
The three-year recertification means CAfP continues to meet CDFI requirements of being an independent financial institution promoting community development and providing development services targeting low- and moderate-income populations.
Last year, new housing, business and auto lending exceeded $2.3 million. This included financing for home purchase or rehab for 42 households, 23 business loans and 34 car purchase loans. In many cases the business financing either helped new businesses start or provided working capital to keep current businesses viable.
“The impact of CAP’s Community Assets for People extends throughout central Wisconsin and impacts lives in communities across the region,” said Andy Soucek, Vice President of Commercial Lending at Central City Credit Union and a member of CAP’s Business Lending Committee. “For example, CAP Services has helped transform the village of Amherst with loans to Central Waters Brewing, American Governor, and Diamond Machining. CAP was able to provide the funds needed when conventional lenders couldn’t, and the ripple effect created by these businesses can be seen and felt throughout the area.”
CAfP, a wholly-owned affiliate of CAP Services, makes business loans to start or expand a business benefiting low-income people or bringing new wealth into the community. It also provides loans for down payment and closing cost assistance to low- and moderate-income households seeking to purchase or rehabilitate their home.
Business loans are made at 4-8% interest, usually for a seven year term, although longer terms and amortization periods can be negotiated. Lower interest rates are available based on job creation on a case-by-case basis.
Housing loans are made at 2.25% simple annual interest. Principal and interest payments are deferred until the resale of the home, until it is no longer the primary residence of the original qualifying household, or for 30 years. All houses purchased with a loan from CAfP must meet U.S. Housing and Urban Development (HUD) housing quality standards.
CAP Services began offering housing assistance loans in 1991 and then established CAfP to serve as its lending arm in 1999. Since 1991 more than 800 households have been helped to purchase their first home. The default rate for all homebuyer assistance loans during this period has been less than 15%.
For more information about CAfP contact Laura West, CAP’s Director of Business Development, at 715-343-7141 or firstname.lastname@example.org.
The Community Development Financial Institutions (CDFI) Fund was established by the Riegle Community Development and Regulatory Improvement Act of 1994 to promote economic revitalization in low-income communities. The CDFI Program is one of the primary ways that the CDFI Fund works to achieve this mission. The purpose of the CDFI Program is to use federal resources to invest in CDFIs and to build their capacity to serve low-income people and communities that lack access to affordable financial products and services.
CAP Services is a private, nonprofit community action agency that has been helping low-income people in Waupaca, Marquette, Outagamie, Portage, and Waushara counties attain economic and emotional self-sufficiency since 1966.