STAMFORD, Conn., Feb. 27, 2020 /PRNewswire/ -- Charter
Communications, Inc. today announced the creation of the
Spectrum Community Investment Loan Fund. The Loan Fund focuses on
making loans through community development financial institutions
(CDFIs) to small businesses whose goods and services help meet core
needs in underserved communities within Charter's 41-state
operating footprint.
The Loan Fund will invest $10
million in capital by the end of 2021, making loans up to
$1 million to each CDFI. In addition,
Charter will provide each CDFI with a separate additional grant,
which will provide these small businesses with additional training
and technical expertise to assist in establishing sound business
practices necessary for long-term growth and continuity.
"Charter is committed to having a meaningful impact in the
communities where our customers and employees live and work, and
the Loan Fund is the latest Spectrum Community Impact program
designed to do just that," said Tom
Rutledge, Chairman and CEO of Charter Communications.
"Through these investments in local small businesses, Charter will
positively impact financially underserved communities by providing
growth capital, creating new jobs and strengthening
businesses."
During the first half of 2020, the Spectrum Community Investment
Loan Fund will invest $1 million in
Pursuit Community Finance (formerly known as the Excelsior Growth
Fund) in New York, and
$1 million in PeopleFund, a CDFI
based in Texas. The Loan Fund also
expects to invest $1 million in an
Ohio-based CDFI later this year.
By the end of the first quarter in 2021, the Loan Fund program
plans to invest an additional $4
million, collectively, in selected CDFIs in California, Florida, North
Carolina and Wisconsin. The
initial $7 million investments will
be in states comprising 70% of Charter's more than 29 million
customers.
"Pursuit welcomes the Charter investment, which will help
catalyze responsible lending to neighborhood small businesses in
communities throughout New York
State," said Steve Cohen,
president of Pursuit Community Finance. "It is noteworthy to
have a public company express a commitment to community lending
alongside our more typical bank investors."
Charter's $10 million commitment
will have an amplified economic impact, serving as the anchor
investment for the small business community programs into which
each CDFI will direct additional third-party capital commitments.
Charter's $3 million phase one
investment in New York,
Texas and Ohio is expected to be combined with more than
$12 million in total capital from
other sources and lead to the creation of hundreds of new jobs in
underserved communities throughout those states.
"It is a true honor for PeopleFund being selected by Charter to
be part of this initiative and we applaud their commitment in
support of CDFIs to help our most vulnerable communities," said
Gustavo Lasala, president and CEO of
PeopleFund. "Each dollar that Charter invests in a CDFI has a
multiplier effect. We will leverage each dollar from Charter with
four dollars from other sources for a
grand total of $5 million to be
invested in small businesses throughout Texas. This will have an enormous positive
economic impact in the communities where these businesses operate
by creating hundreds of jobs and helping hundreds of families
achieve financial stability and independence."
Charter has engaged Cabrera Capital Markets, a diverse-owned
investment bank based in Chicago,
to spearhead the due diligence process on the Loan Fund's first
three CDFI investments. Cabrera Capital Markets has partnered with
the Local Initiatives Support Corporation (also known as LISC), one
of the nation's largest CDFIs, to supplement its CDFI underwriting
capabilities. Charter has selected Siebert
Williams Shank & Co. and CastleOak Securities, L.P., two
other diverse-owned investment banks, to provide due diligence
support and related advisory services on its future CDFI
investments.
About Charter
Charter Communications, Inc. (NASDAQ:CHTR) is a leading
broadband communications company and the second largest cable
operator in the United States.
Charter provides a full range of advanced residential broadband
services, including Spectrum TV® programming, Spectrum
Internet®, Spectrum Voice®, and Spectrum
Mobile™. Under the Spectrum Business® brand,
Charter provides scalable, and cost-effective broadband
communications solutions to small and medium-sized business
organizations, including Internet access, business telephone, and
TV services. Through the Spectrum Enterprise brand, Charter is a
national provider of scalable, fiber-based technology solutions
serving many of America's largest businesses and communications
service providers. Charter's advertising sales and production
services are sold under the Spectrum Reach® brand.
Charter's news and sports networks are operated under the Spectrum
Networks brand. More information about Charter can be found
at http://corporate.charter.com.
About Pursuit
At Pursuit, our mission is simple: to provide businesses with
affordable loans and resources so that they can reach higher,
transform and grow. Pursuit is a community-focused lender where
businesses can access more than 15 loan programs that provide
financing from $10,000 to
$5.5 million with affordable rates
and terms. Last year alone, Pursuit provided more than $234 million in funding through 488 business
loans, creating more than 2,900 jobs. Pursuit is a nationally
recognized organization that focuses on serving businesses and
lending partners in New Jersey,
New York, and Pennsylvania. Pursuit Community Finance is the
non-profit, CDFI affiliate of Pursuit. Learn more at
www.pursuitlending.com.
About PeopleFund
PeopleFund is a registered 501(c)3 nonprofit organization
established in 1994. It is a U.S. Treasury certified Community
Development Financial Institution (CDFI) and SBA certified lender.
PeopleFund provides business loans up to $350,000 to Texas
businesses that do not qualify for bank loans. It also provides
client business assistance and education. 97% of loans are to
target market of minority, women, and veteran business owners and
those residing in low to moderate income census tracts. 59% of
current loans are to startups and non-profit organizations. It also
makes SBA 504 loans up to $5 million and closes multiple high
impact new market tax credit transactions. Through access to
capital and educational opportunities, PeopleFund creates economic
opportunity and financial stability for underserved people to build
healthy small businesses. PeopleFund inspires, educates, funds, and
elevates entrepreneurs on the path to prosperity and the American
dream. www.peoplefund.org.
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SOURCE Charter Communications, Inc.