ImpactAlpha, May 7 – The fund, seeded with a $100 million gift from the Federal Home Loan Bank of San Francisco, invested $3.2 million in Pacific Community Ventures, a small business lender and mentoring network. The bank, which provides low-cost funding to other financial institutions to make home mortgages, created the fund at New World Foundation in January to increase the pool of potential homebuyers by fortifying the financial security of working families.
An earlier $5 million investment went to the Central Valley Fund in Davis, Calif.
- Loan leveraging… The $3.2 million investment will allow Pacific Community Ventures to make $5 million in loans and support the creation of 5,000 new jobs with average wages of $17 per hour.
- Community development finance… Pacific Community Ventures earlier this year secured financing from JPMorgan Chase’s expanded Entrepreneurs of Color Fund.