A $640,000 Financial Assistance Grant was awarded to the Northern Kentucky Catalytic Fund through the US Department of Treasury’s Community Development Financial Institution Fund.
Leadership at the Catalytic Fund said the money will bolster their Flexible Capital Pool, which they use to fund real estate projects with high economic impact but also developmental complexities.
“Increasing our Flexible Capital Pool via this CDFI grant will provide greater capacity to provide flexible investments in projects that create lasting positive change our community and make our region an amazing place to live,” Catalytic Fund CFO Joe Klare said in a press release.
That pool money is used in conjunction with their Investor Fund to provide nontraditional financing for their redevelopment projects throughout Northern Kentucky.
From its launch in 2013 to today, the Catalytic Fund’s Capital Pool has grown from $10 million to $22.7 million and has provided financing for 81 real estate projects. Some of Fund’s most notable projects include the Hotel Covington, Boone Lock Lofts and Bellevue’s Kent Lofts.
The goal of the CDFI Fund is to provide low-income communities access to financial products and services to the surrounding local businesses and residents. A CDFI entity can be banks, credit unions, loan funds, microloan funds or venture capital firm.
The Catalytic Fund qualified as a CDFI entity through a certification process performed by the Treasury Department. To qualify, the Catalytic Fund had to be a not-for-profit entity, have a community development-based mission, the capacity to provide capital via loans or investments, and a qualified staff.
Capital for their other investment products are provided by the Fund’s 18 members. This includes entities like PNC Bank, St. Elizabeth, US Bank, Duke Energy and the Carol Ann and Ralph V. Haile, Jr. Foundation to name a few.