Community Capital serves the unique needs of minority owned businesses and small businesses that impact low-to-moderate income (LMI) job creation. CCC makes loans and investments to small businesses to encourage growth, create jobs, and improve the economic prosperity of the communities they serve.
Community Capital Corp. (CCC) is a non-profit, 501 C (3), community development finance institution (CDFI) established in 2019, and certified by the US Department of the Treasury in 2020, for the purpose of improving capital flows to minority-owned businesses and to businesses that impact low to moderate income job creation. CCC accomplishes this by providing capital, education, and technical assistance within these target markets. Our independent board of directors understand the unique requirements of communities that we serve and we actively seek to partner with other organizations that share this mission.
CCC commenced operations in 2019 and was initially funded by a $1.0 million contribution and a $5.0 million credit line from BDC Capital Corporation, a 68 year old economic development corporation based in Wakefield, MA. BDC Capital provides capital for real estate, working capital, equipment financing, acquisition, or debt restructuring to thousands of companies located in New England with a current portfolio of more than $700 million invested in more than 1,000 companies.
In 2018, with the direction from the Board of Directors, BDC Capital began an initiative to more appropriately target capital investment in minority-owned businesses and businesses that impact low to moderate income job creation. After considerable research, it was determined that BDC would help support the formation of a separate, not for profit CDFI whose sole mission was to target these markets as its primary mission. A task force was formed to conceptualize the new CDFI mission, to assist in the creation and documentation of the new entity, to recruit an independent governing Board of Directors, and to begin to build staff and create loan/investment programs for the CDFI.
CCC now offers credit lines, working capital loans, real estate and equipment financing, loan guarantees, mezzanine and equity investments in amounts ranging from $5,000 to as much as several million per company. In addition, CCC offers technical assistance in the form of business plan reviews, strategic consulting, loan and investment structuring services, and ongoing monitoring and assistance to company ownership once the relationship is established.
Lending and investing began in 2020 and at year-end 2020, CCC made loans and investments totaling $3,080,000 to seven companies within our target market. In addition, CCC created partnerships with other economic development entities including the Worcester Business Development Corporation (WBDC) , the Massachusetts Small Business Capital Access Program (CAP), and MB Capital IV, a provider of mezzanine investment. CCC entered into agreements to underwrite and service loans for these entities. During 2020, CCC underwrote 9 SBA loans totaling $8.8MM and serviced 42 SBA loans totaling $19.7MM on behalf of WBDC. CCC is actively seeking additional partnerships with appropriate economic development entities including those that provide mentoring, education, or technical assistance to CCC target communities to further leverage our investing impact within target markets.
We believe education is a cornerstone of developing future business leaders. In 2020, CCC donated $100,000 to the Ron Burton Training Village (RBTV). This entity provides education and mentoring to more than 400 young men and women from disadvantaged populations, nurtures life skills, and helps to prepare for college educations, all designed to improve long-term outcomes.
CCC is actively recruiting additional full-time senior management with business development, loan and technical skills. We project assisting 25 new companies within CCC target markets with loans, loan guarantees, investments and technical assistance in 2021. In 2022, CCC expects to add grant writing expertise to target additional sources of capital to expand the impact of CCC target markets.
Based on favorable outcomes within our eastern MA target market, CCC will work to broaden the target market to encompass additional underserved markets in New England in 2023- 2024 and beyond. CCC is also seeking additional capital partners to expand the investment pool by reaching out to banks, foundations and other financial institutions that may be looking for appropriate community investment partners under Community Reinvestment Act guidelines from the federal government.
