LOS ANGELES--(BUSINESS WIRE)--VEDC, a leading Community Development Financial Institution (CDFI), today reported that it has acquired the California Economic Development Lending Initiative (CEDLI) loan portfolio. An agreement was reached with REA Consulting LLC, an affiliate of Robb Evans and Associates LLC, a long-established firm appointed as fiduciaries, asset managers, and consultants. CEDLI previously appointed REA Consulting to liquidate the loan portfolio.
In 1993, the CEDLI Task Force was initiated by the Development Fund, the Federal Reserve Bank of San Francisco, and over forty California financial institutions and community economic development leaders. Their research project developed the for-profit multi-bank community development corporation California Economic Development Lending Initiative, called CEDLI. For over 20 years, CEDLI provided millions of dollars of loans to small businesses across the state which resulted in much needed employment for low and moderate income residents. Most recently, recession related losses caused CEDLI to shut down.
“The acquisition of the CEDLI loan portfolio supports VEDC’s strategic growth plans to expand into new markets and geographies, while diversifying their portfolio,” commented Byron Reed, VEDC Board Member and Senior Vice President/Director, Community Development, Los Angeles Metro/Orange County Region Wells Fargo & Company.
The CEDLI loan portfolio, valued at nearly $5 million, consists of seasoned loans with a high concentration in the service sectors as well as non-profit organizations. Many were for the purchase of owner occupied commercial real property, or to provide increased working capital, and to provide lending capital to CDFI lenders with an extended repayment schedule.
Clarence Williams, President and CEO of California Capital and VEDC Board Member stated, “Supporting small business is the key to our economic recovery because they hire and pay taxes locally. Acquiring the CEDLI portfolio allows VEDC to extend capital to the businesses working to create a strong business sector and promote recovery in their communities.”
“VEDC’s move to acquire the CEDLI loan portfolio just makes sense,” said Roberto Barragan, VEDC President and CEO. “We have been supporting small business owners in California for 38 years and this purchase will allow for continued job creation and retention in the small businesses impacted by the closing of CEDLI. VEDC has picked up the gauntlet and is truly the state’s leading small business CDFI.”
VEDC is a leading non-profit small business lender that is changing the way small business lending is done by making it more available, sustainable and impactful. As a national small business lender, VEDC has lent $360 million in direct and guaranteed loans to 100,000 small businesses and created more than 27,000 jobs. As a certified Community Development Financial Institution (CDFI), VEDC’s mission is to help create jobs and promote economic development in under-served communities. It provides loans and micro-financing options to small businesses, particularly those owned by women and minorities, that don’t qualify for traditional bank financing. VEDC’s expanding portfolio is composed of community-based loan funds in Los Angeles, Chicago, San Francisco, Las Vegas, Reno, Salt Lake City, Miami and the New York Tri-State area. For more information visit www.vedc.org.