CHICAGO--(BUSINESS WIRE)--Nov. 27, 2007--Chicago Development Fund
(CDF), a non-profit entity controlled by the City of Chicago, is
working on an exclusive basis with U.S. Bank to launch the Industrial
Expansion Loan (IEL) program, providing favorable financing for
established companies looking to expand industrial operations in
low-income communities within the City of Chicago.
IEL loans range from $2 million to $15 million and feature
advantageous terms such as interest rates of about 200 basis points (2
percent) below market, loan-to-value ratios up to 95 percent of
development costs, and partial forgiveness of debt after several
years. They are available for existing businesses who want to expand,
relocate or renovate or for developers of new industrial projects
located in any of Chicago's qualifying industrial areas.
Jeff Streder, an assistant commissioner with the Chicago
Department of Planning and Development, said that IEL program utilizes
New Markets Tax Credits (NMTC), a federal tax incentive, to reduce
financing costs. "We selected U.S. Bank because they are the most
active tax credit investor in the country and can bring creative
solutions that leverage other forms of financial assistance to help
make projects affordable. By selecting U.S. Bank as our exclusive
capital provider for this program, we have also been able to keep
transaction costs low, which will allow both small and large firms to
participate in the program."
Since 2004, U.S. Bank has partnered with more than 70 different
certified Community Development Entities like CDF and financed more
than 200 NMTC projects in 70 cities and 35 states.
Daniel Reisner, president of U.S. Bank's Chicago region said, "We
see a positive transformation taking place with this program in many
low income and urban neighborhoods throughout the country and are
dedicated to working with CDF to retain and create additional
industrial jobs that support our great City." He noted that U.S. Bank
will provide both debt and equity capital to finance eligible
projects. "Our goal is to identify and fund projects that will trigger
significant economic change in a relatively quick time frame."
CDF is a non-profit subsidiary of the City. To learn more about
the Industrial Expansion Loan program, or to determine the eligibility
of a specific project, please contact Tony Smith or Carmelo Barbaro at
S. B. Friedman & Company, (312) 424-4250. An application and map of
qualifying areas for the program is also available online, on the City
of Chicago's Department of Planning and Development website,
www.cityofchicago.org/plananddevelop.
U.S. Bancorp's Community Development Corporation, with assets of
nearly $4.2 billion, is the largest investor of New Markets Tax
Credits in the country. It also finances affordable housing and
community development projects through the use of low-income housing
and historic tax credits. It is a subsidiary of U.S. Bancorp
(NYSE:USB), with $228 billion in assets and of U.S. Bank, 6th largest
commercial bank in the United States. The company operates 2,512
banking offices and 4,870 ATMs, and provides a comprehensive line of
banking, brokerage, insurance, investment, mortgage, trust and payment
services products to consumers, businesses and institutions. Visit
U.S. Bancorp on the web at www.usbank.com. U.S. Bank has 54
full-service branches in the Chicago area.
CONTACT: U.S. Bank
Media Relations
Lisa Clark, 608-877-7517 phone
888-437-8620 pager
SOURCE: U.S. Bank
