SOCIAL TOPICS (Archive): COMMUNITY DEVELOPMENT INVESTING

Published, June 1999

       Elk Horn Bank was named 1998 Lender of the Year by the Small Business Administration for extending the most loans in underserved communities. Based in the Arkansas Delta, Elk Horn is a full-service community development bank addressing the needs of small depositors and borrowers — clients often viewed as unprofitable by large regional banks. Elk Horn was acquired by Southern Development Bancorporation (SDB) in 1988 and channels funds into SDB’s nonprofit work.

       SDB’s nonprofit efforts include Arkansas Enterprise Group (AEG), a small business development organization. AEG has created or maintained over 2700 jobs through its two affiliates that provide financial tools and services and technical assistance to businesses, lenders, and entrepreneurs. Good Faith Fund, one of AEG’s affiliates, has made $2 million in loans since 1988 and has provided need-based training and technical assistance for over 750 emerging entrepreneurs. Of these, more than 85 percent have been women and approximately 90 percent have been African-American.

       Elk Horn has made over $34 million in loans for manufacturing, agriculture and export services — companies bringing new income or jobs from outside the local economy. Elk Horn has a rich history being the oldest financial institution in the Arkansas Delta. The bank is closely identified with the commercial and civic development of these communities and has participated in the financing of many public improvements for the area. Walden/USTC is delighted to include Elk Horn Bank in our Community Development Investment Service.

       Walden Asset Management began its Community Development Investment Service in 1996. Twice a year, we provide our clients with a choice of pre-selected community development loan funds, banks and credit unions that target international, national, regional or local projects, primarily in affordable housing and small businesses. All investments are client directed and are registered in clients' names. In the spirit of our clients’ willingness to accept a below market rate of return, USTC does not charge a fee on below-market investments unless they exceed 5% of a portfolio.