Native American Bank (NAB) finds impact investor on CapNexus!
NAB, a national Native-owned bank, CDFI, and CDE, posted an opportunity on CapNexus where they were seeking deposits up to $5,000,000 to help fund its growing loan pipeline. The bank recognizes that among the many issues facing Native Americans, the absence of access to financial capital and services has been a significant obstacle toward the realization of self-sufficiency and financial freedom across Indian Country throughout the United States.
Kim LaFranchi, Program Manager at Sustainable Communities Fund (SCF) and a frequent user of CapNexus, saw the Native American’s Bank’s opportunity and contacted them. Ms. LaFranchi felt that NAB’s overall model is unique and important that not only should be preserved but expanded in order to better address the historic multi-layered disparities faced by this population and its governance entities.
The two organizations became creative in how to support NAB. Instead of placing a deposit into the bank, SCF provided a $300,000 loan to NAB’s holding company, whereby the holding company could inject the investment as capital into the bank, affording an 11:1 leverage thus supporting $3,300,000 of growth.
According to Ms. LaFranchi, “As a foundation, we could play an important catalytic role for NAB given that generally most foundations invest where other foundations have already invested. We hope that our investment may spur other foundations to invest in the future.”
Ms. LaFranchi further stated, “Without the CapNexus platform, SCF would not have known of this entity and specific investment opportunity or to have been able to so quickly connect and execute this investment.”
“We are both humbled and grateful to be a recipient of new capital from SCF” stated Tom Ogaard, Chairman, President and CEO of the Bank’s holding company. “It will provide much needed support for helping us provide resources to Indian Country and diversify economies in areas of the country that are often lacking banking services.”
This investment and partnership will assist this CDFI bank to meet its goal of increasing Indian economic independence by fostering a climate of self-determination in investment, job creation, and sustainable economic growth.
****Both NAB and SCF have current opportunities listed on CapNexus. To learn more, either use the search function on the website or email Carla Mannings at manningsc@pcgloanfund.org