How CRF Provides Capital

CRF purchases economic development and affordable housing loans from our community development partners. We pool them into asset-backed securities and New Markets Tax Credit funds that are sold to institutional investors through private placement. There are several formats or capital channels for our loan products.

Advanced Commitment - You and CRF agree in advance on the terms of loans to be purchased. Then CRF buys some or all of each loan as it is originated. This can be done on a programmatic basis or for a single loan.

Existing Loan Purchase - CRF buys existing, seasoned loans from the lender. If you wish, your sales can be timed to meet cash demands. Usually, your organization transfers risk to CRF and gets cash, without recourse.

Structured Finance - CRF advances cash against your loan portfolio, based on the portfolio's market value. Your portfolio will be securitized, but your organization will hold residual interest.

Lending Partner Loans - CRF provides a loan to the community development lender, with the lender’s loan pool and corresponding cash flow determining the amount of cash advanced and the repayment schedule.

Our loan products (Business, New Markets Tax Credit, Housing and Loans to Lenders) can be structured any of the following ways:

How Capital Channels Can Be Used for CRF Loan Products