COM DEV BANK START-UP

[pbowman at london2.skn.ne]

My organization is considering creating a community development bank to
serve our region. Does anyone have informatin on the start-up process? I
am familiar with several names - Shore Bank, L.A. Community Development
Bank, Lousiville Bancorp, EcoTrust, but need a contact person/phone
number/address. I would like to visit several of these before deciding the
best course of action for my organization.

Any information will be most helpful.

Thank you.

Paula Bowman
MACED
433 Chestnut Street
Berea, KY 40403
pbowman@skn.net


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[Bradley.Streeter at occ.t]

Ms. Bowman,

My name is Bradley Streeter. I'm a Community Reinvestment and Development
Specialist for the Office of the Comptroller of the Currency in Kansas City.
If you are looking to start a community development bank in Kentucky, I would
encourage you to contact the Central District office for the OCC in Chicago.
My counterpart in Chicago is Roosevelt Washington. His phone number is
312-360-8884.

If you would like further assistance in establishing a community development
bank, CD loan fund, CDFI, or bank-sponsored community development corporation,
please contact me through e-mail at bradley.streeter@occ.treas.gov or by phone
at 816-556-1836.

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[Stephen.Davey at occ.trea]

In response to the question about starting a new community development
bank, here are some comments about raising capital. CD banks can
look to a number of sources including large institutional investors
(such as banks), foundations, universities, smaller corporations,
ndividuals, and local and state governments. Many of these investors
provide capital or "social investments" primarily because these banks
have a CD focus. Some CD banks have applied to the Treasury's CDFI
fund for matching grants.

Capital raising strategy may depend on the image of the proposed
bank. For example, a group in Grand Rapids raised its capital
from local individual and small business investors because the
bank is intended to come from and serve the local community.

Some organizers have consulted with Shore Bank on this point. I
do not believe the advice is free.

As you may know, the Office of the Comptroller of the Currency
has approved two CD Banks. The applications for both banks
discuss capital raising efforts. New CD bank organizers may
obtain applications for NDB (San Diego) and Community First
(DC) from the Office of the Comptroller of the Currency (OCC) in
Washington via the Freedom of Information Act. Contact
Mr. Frank Vance, Public Disclosure Officer, Communications
Department, Comptroller of the Currency, Washington, DC 20219-0001.

The OCC provides technical assistance to organizers when forming a
CD bank through phone calls and meetings to assist the organizers.
Previous organizers have indicated that this advice has been helpful.

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