CIT Bank Invests $2.5MM in Clearinghouse CDFI

CIT Bank made a $2.5 million Class A equity investment in the Clearinghouse Community Development Financial Institution (Clearinghouse CDFI), the largest such investment in Clearinghouse CDFI’s 20-year history. With this investment, CIT Bank also becomes the organization’s largest equity investor.

Clearinghouse CDFI will use this investment to benefit low-income and distressed communities. The $2.5 million investment will help Clearinghouse CDFI continue financing community facilities, affordable housing, commercial real estate and other projects that create jobs and services in underserved areas. The resulting funds will specifically enhance community development efforts in Southern California.

“Investing in Clearinghouse CDFI is an effective way to deploy capital to bring measurable and positive impacts to the Southern California communities we serve and to meet our far-reaching community redevelopment goals,” said Steve Solk, president of Consumer Banking at CIT. “Becoming Clearinghouse CDFI’s largest investor reflects our company’s broad commitment to community.”

Similar projects previously financed by Clearinghouse CDFI include:

  • Ventura County Community Foundation, Camarillo, CA — $4.6 million loan to help this nonprofit achieve financial stability and continue offering below-market rent for 16 additional nonprofits
  • Pinoleville Pomo Nation, Ukiah, CA — $2.24 million loan to reacquire former tribal land and further tribal economic development
  • Bellaire Downtown, Los Angeles — $3.54 million loan for the renovation of a 212-unit, single room occupancy building into an economical, secure housing option in a severely distressed community

“CIT Bank’s very generous investment will create jobs, improve neighborhoods and provide lasting impacts in low-income and distressed communities,” said Douglas J. Bystry, president and CEO of Clearinghouse CDFI. “We are pleased that CIT Bank’s first investment is also our largest ever equity investment. We couldn’t be more thrilled and plan to leverage these dollars to create positive change in communities that need it the most.”

Clearinghouse CDFI has funded $1.5 billion in total loans for more than 1,820 community projects over the past 20 years. These projects have created or retained more than 16,500 jobs and benefit more than 1.5 million individuals.

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