NORFOLK, VA (September 6, 2007)-While major financial institutions are decreasing personal loan opportunities and U.S. poverty rates decline, Hampton Roads Ventures, LLC (HRV) and Norfolk Chesapeake Portsmouth Federal Credit Union (NCP) establish a community investment partnership in order to increase financial opportunities and develop local assets, in Norfolk’s lower income communities.
The partnership will provide viable solutions to many of the issues practitioners and policymakers nationwide are facing as they look to strengthen economic opportunities and quality of life in lower income communities. Building entrepreneurial capacity, and finding new ways to influence limited resources to build housing, improve infrastructure, and reduce poverty are at the core of HRV and NCP’s agreement.
Under the agreement, HRV will invest $100,000 in equity programs and deposit $600,000 as a certificate of deposit into the credit union. NCP will then use the proceeds from these investments to make loans to lower income borrowers at lower interest points. The partnership will make auto loans, residential and commercial loans, and lines of credit available to borrowers that would not have the opportunity otherwise.
The agreement also states that HRV and NCP will jointly collaborate to plan, develop, and implement a unique acquisition/rehabilitation loan product in order to combat the decreasing number of single-family homes available to low- to mid-income families. The product will provide highly flexible, non-traditional loan terms to help homebuyers purchase and redevelop older homes in the Norfolk. This makes purchasing a home more affordable rather than being forced to purchase more expensive, newer homes outside the city.
“This initiative combines HRV’s unique capabilities in adopting new financial strategies and tools to attract much needed private sector investments into lower income communities with NCP’s expertise in directly providing lower income residents with a broad array of financial options,” said Robert K. Jenkins, Jr., President and CEO of HRV. “The result is a community effort that will increase the economic growth of Norfolk’s neighborhoods by providing practical solutions directly to some of its most vulnerable residents.”
About NCP Federal Credit Union
Located in Norfolk, Va, NCP Federal Credit Union is a non-profit community development federal credit union serving the residents of Norfolk, Chesapeake, and Portsmouth. With over 762 members, NCP mainly focuses on increasing the financial growth and opportunities for lower income residents of its service areas.
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