The Catalytic Fund has been selected to receive a $1,250,000 Financial Assistance Grant from the United States Department of Treasury’s Community Development Financial Institution (CDFI) Fund.
The grant will provide capital for the company’s Flexible Capital Pool it uses in conjunction with its Investor Fund to provide nontraditional financing and development services to execute real estate projects in Northern Kentucky that advance economic and community development. The Catalytic Fund provides non-traditional loans and investments in communities needing thoughtful investment in underutilized sites and buildings.
The Catalytic Fund was eligible for this funding as a CDFI entity certified by the US Department of Treasury. Certification is a rigorous process that requires an organization to be a not-for-profit entity, to have a community development-based mission, to have capacity to provide capital via loans or investments, and qualified staff.
Initially capitalized in 2013, the Catalytic Fund’s capital pool has grown from $10M to $31.8M today. It has provided financing and/or development services that have advanced 100+ real estate projects representing $450M+ in total new investment in Northern Kentucky. Notable Catalytic Fund projects include Hotel Covington, Boone Lock Lofts, Bradford Building, Bellevue’s Kent Lofts, and Dayton’s Burton’s Building.
The Catalytic Fund has also provided funding and development services for community facility projects such as the Life Learning Center, the Emergency Shelter of Northern Kentucky, and the Samaritan Car Care Clinic.
In addition to the CDFI Fund, twenty private entities are members of the Catalytic Fund and provide capital for the Company’s investment products. The CDFI grant will expand the Catalytic Fund’s Flexible Capital Pool which funds projects having high community impact but are more challenging to execute due to the development complexities encountered in undertaking urban redevelopment projects.
“The Catalytic Fund’s work supports redevelopment of vacant and blighted properties, provides capital to attract investment in historically underserved communities, and creates places that enhance our community’s quality of life,” said Jeanne Schroer, CEO of the Catalytic Fund. “Increasing our Flexible Capital Pool via this CDFI grant will provide greater capacity to provide flexible investments in projects that create lasting positive change in our community and make our region an amazing place to live.”
The Catalytic Fund