PNC Bank Invests $20 Million in Local Initiatives Support Corporation To Fuel Growth in Under-Resourced Communities Nationwide
Innovative Equity-Like Funding Will Support Long-term Community Investment Strategies
NEW YORK, April 2, 2024 /3BL/ - PNC Bank has invested $20 million in the Local Initiatives Support Corporation (LISC) to expand the organization’s efforts to boost economic opportunity and growth in thousands of rural counties as well as across 38 metro areas in the United States.
PNC Bank’s funding includes both a 10-year, $10 million Equity Equivalent (EQ2) investment as well as a more flexible $10 million three-year term loan. EQ2 is an innovative debt tool that offers nonprofit community development financial institutions (CDFIs) like LISC the chance to raise capital with features that are similar to an equity investment.
“We continue to see that patient, flexible and risk tolerant EQ2 financing has become an increasingly important lever for community lenders to attract additional private capital into under-resourced communities,” said Rey Ocañas, managing director, PNC Community Development Banking. “With this 10-year commitment, PNC remains laser-focused on our efforts to strategically deploy low-cost capital into transformative initiatives that advance economic empowerment and prosperity where it’s needed the most.”
LISC is one of the country’s largest community development organizations, and it will use PNC’s capital to support a range of new and existing community investment efforts, such as small business programs for entrepreneurs without ready access to conventional financing—including those owned by women, people of color and veterans. PNC Bank and LISC have collaborated on a number of significant investments in recent years spanning retail, health, education, and job training centers, as well as quality affordable housing and services.
“With this capital, PNC has made a remarkable commitment to the well-being of families and communities, with a ripple effect that will support economic growth long into the future,” said Michael Pugh, LISC CEO. “This is also a major investment in the infrastructure of community development,” he added, “helping us support our local partners as they scale up proven strategies for social, economic and environmental impact.”
About PNC Bank
PNC Bank, N.A., is a member of The PNC Financial Services Group, Inc. (NYSE: PNC). PNC is one of the largest diversified financial services institutions in the United States, organized around its customers and communities for strong relationships and local delivery of retail and business banking including a full range of lending products; specialized services for corporations and government entities, including corporate banking, real estate finance and asset-based lending; wealth management and asset management. For information about PNC, visit www.pnc.com.
About LISC
LISC is one of the country’s largest community development organizations, helping forge vibrant, resilient communities across America. We work with residents and partners to close systemic gaps in health, wealth and opportunity and advance racial equity so that people and places can thrive. Since our founding in 1979, LISC has invested $29.7 billion to create more than 489,000 affordable homes and apartments, develop 81.4 million square feet of retail, community and educational space and help tens of thousands of people find employment and improve their finances. For more, visit www.lisc.org.
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