Working on a pro bono basis, Shearman & Sterling advised the National Federation of Community Development Credit Unions on its receipt of a $10 million investment from Bank of America in the Federation’s Community Development Investment Program.
This funding commitment from Bank of America will launch a new secondary capital loan product, funding investments in high performing credit unions. The first three recipients of these funds include Freedom First Federal Credit Union, IH Mississippi Valley Credit Union, and Suncoast Credit Union, each to receive $1 million.
The National Federation of Community Development Credit Unions is a certified CDFI Intermediary representing community development credit unions that provide credit, savings, transaction services and financial education to more than 4 million residents of low-income urban, rural and reservation-based communities across the United States, and hold over $32.5 billion in community-controlled assets. Founded in 1974, the Federation is headquartered in Lower Manhattan with offices in Madison, WI. The Federation offers a wide range of advocacy, educational, training, investment, marketing, and outreach programs to support and assist CDCUs.
The CDI Program provides capital resources to its member CDCUs seeking funds to increase liquidity, boost net worth, mitigate risk and introduce innovative products. The CDI Program has invested more than $100 million in CDCUs since its inception in 1982.
This project was referred to Shearman & Sterling by Lawyers Alliance for New York (LANY), the leading provider of business and transactional legal services for non-profit organizations and a long-time partner of the firm.
The Shearman & Sterling team included partner Russell Sacks (New York-Financial Institutions Advisory & Financial Regulatory), counsel Sylvia Favretto (Washington, DC-Financial Institutions Advisory & Financial Regulatory), and associates Steven Blau (Toronto/New York-Financial Institutions Advisory & Financial Regulatory) and Christina Broch (Washington, DC-Financial Institutions Advisory & Financial Regulatory).