There are many complex rules that must be followed in order to qualify for and comply with CDFI Programs.
Our legal and accounting backgrounds as well as significant experience in community and economic development enables us to strategically underwrite, structure and close these complex financings on behalf of our clients.
Generally, all of our fees are contingent upon the “first-tier” applicant receiving an award of the CDFI Program subsidy or the “second tier” applicant receiving such subsidy, as applicable.
If you believe that you have a project that could qualify for any USDA Program, please complete our Initial Intake Form.
Upon engagement, we will:
- determine whether our client qualifies as a “first tier” applicant or a “second tier” applicant;
- if applicable, organize a new entity for purposes of qualifying as a CDE which will be the applicant (the “Applicant”), including (a) drafting and filing articles of organization; (b) drafting partnership agreements or limited liability company agreements, as applicable (including provisions necessary for qualification as a CDE and other CDFI Fund requirements); (c) applying for a federal tax identification number; and (d) providing other related organizational services;
- draft all necessary authorizing consents, resolutions, and certifications as required for facilitating all of the transactions contemplated by the applicable CDFI Program application;
- complete the online application to the CDFI Fund requesting designation of our client Applicant as a CDE (as well as provide necessary research to determine qualification of governing or advisory board members, as applicable, as representative of low-income communities and/or low-income persons);
- as applicable work with the client to outline (a) its business strategy and financial products; (b) qualifying and quantifying community impacts related to its pipeline of projects; (c) its management capability; and (d) its strategy for identifying and securing investor and other financing participants;
- underwrite our client Applicant’s pipeline of projects;
- assist in identifying other projects and borrowers that may be included in the CDFI Program application;
- provide advice and guidance as well as draft and complete answers to each CDFI Program application;
- file the CDFI Program application online (and all required documents) with the CDFI Fund;
- assist with any questions or concerns raised by the CDFI Fund during its review of the CDFI Program application;
- assist in negotiating the CDFI Program agreement with the CDFI Fund;
- draft CDFI required opinions, consents and resolutions required for the CDFI Program award;
- ensure that it is in compliance with the legal requirements of the CDFI Program and the CDFI Program agreement;
- identify and secure other sources of financing (including traditional financing, state NMTCs, historic tax credit financing, low-income housing tax credit financing, and other types of community and economic development programs, such those provided by the USDA Programs);
- negotiate term sheets;
- structure the overall financing;
- collect due diligence materials and create a drop box;
- manage the closing and funding;
- provide ongoing asset management, compliance and reporting services, and provide such other services as set forth in our Consulting Agreement.