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Bank One investments in Arizona and Appalachia Ohio
ARIZONA
Bank One just approved a $1.5 million investment in Magnet Capital, the first small business investment
company, or SBIC, in the nation to focus on the SBA's recently launched New Markets program which
features more flexible funding and investment terms for small businesses operating in low- and moderate-
income areas, or employing persons who reside in those communities. Magnet Capital will provide
growth capital in the form of mezzanine financing to small businesses in Arizona, and possibly adjacent
states such as Utah and Colorado. Investments will range from $250,000 to $1.5 million.
In 1998, under the SBA Microloan Program, Bank One provided a $640,000 credit facility to PPEP
Microbusiness, Inc. (PPEP/MICRO). one of the longest running and most successful microenterprise
organizations in the country. The complex credit facility included flexible repayment terms, competitive
pricing and a three-way partnership between PPEP/MICRO, the SBA and Bank One. By extending very
small loans, often only $3,000 or $4,000, and technical assistance to rural entrepreneurs in southern
Arizona, PPEP/MICRO has built a loan portfolio totalling more than $1.5 million. Bank One provided
further support in the form of a $30,000 grant and the donation of a "micro loan van" to help
PPEP/MICRO reach more entrepreneurs through a mobile office. PPEP/MICRO was the 1998 winner of
the Presidential Award for Excellence in Microenterprise Development in the category of access to credit.
In 1998, Bank One also provided Chicanos Por La Causa (CPLC) with a $500,000 credit facility under
the SBA Microloan Program. CPLC is the leading microlender in Phoenix and northern Arizona. Bank
One also provided CPLC with a $30,000 grant and a "mobile loan van" to further extend CPLC's reach.
Bank One supports SELF-HELP. a microenterprise organization that provides technical assistance and
welfare to work programs in Phoenix. Bank One's support includes annual grants of $15,000 and
complimentary office space in the lobby of Bank One, Arizona's headquarters.
In 1992, Bank One became the lead investor in the Arizona Multibank CDC by providing $3 million to
capitalize this now long-standing financial intermediary. The Arizona Multibank CDC has financed over
165 small businesses and projects totalling more than $11 million since its inception. Loan amounts of
$500 to $500,000 are available to businesses and housing projects that do not qualify for conventional
bank financing.
Bank One is also the lead sponsor for Bank One Ball Park, home of the Arizona Diamondbacks, which
has energized economic development and community revitalization throughout downtown Phoenix.
APPALACHIA OHIO
Bank One recently closed a $600,000 credit facility to Enterprise Development Corporation (EDC),
one of the oldest and most productive microenterprise development organizations in the country. This is
the fourth loan extended by Bank One under the SBA Microloan Program. Bank One will also be
providing EDC with a $45,000 grant to help establish their loan loss reserve account. A closing event is
being scheduled to take place in Athens, OH.
Bank One is has formally committed to invest $5 million in DCC Growth
Fund, a holding company which will comprise two drop down SBICs - one debenture SBIC and one
participating securities SBIC. This will be a large national fund with its Midwest regional office in
Akron, OH. Bank One and
DCC Growth Fund are preparing a Memorandum of Understanding which calls for special efforts to
invest in women and minority owned firms, and to firms located in LMI zones. Bank One expects to
close on this investment in the next thirty days.
Bank One is working with the founding principals of the Appalachian Ohio Development Fund which
will provide equity financing and technical assistance to small businesses southern Ohio. Wilhelm and
Conlon, Ohio University, the Appalachian Regional Development Commission. Hocking Technical
College, Kentucky Highlands Investment Corporation and ACE-net are all involved in the formation of
this new fund. Although much work is yet to be done, Bank One anticipates investing roughly $1 million
in this new fund and will continue to play a leadership role in its development.
Bank One is the lead investor (at $3 million) in Capital Across America, the first SBIC in the nation to
focus on women-owned firms. Capital Across America is headquartered in nearby Nashville, TN and
serves several contiguous states, including Ohio. A Bank One executive serves on the both the board and
investment committee for this fund which just recently celebrated the completion of its first year in
business.
JONATHAN A.KAPLAN
06/28/99 04:29:47 PM
Record Type:
Record
To:
Lisa Green/OPD/EOP@EOP, Jackson T. Dunn/WHO/EOP@EOP
CC:
Bako)
Subject: Bank One Investments in Arizona and Appalachia Ohio
Helpful information from my conversations with Bank One folks this morning.
Forwarded by Jonathan A. Kaplan/OPD/EOP on 06/28/99 04:29 PM
[email protected]
06/28/99 01:15:00 PM
Katuday
Record Type:
Record
To:
Jonathan A. Kaplan@EOP
CC:
Subject: Bank One Investments in Arizona and Appalachia Ohio
John:
It was nice speaking with you this afternoon. Thanks for the update
regarding the President's schedule for the Trade Mission to America.
As I mentioned, Mary Laraia asked that I send you a summary of the
investments Bank One has made, or is about to make, in both Arizona
and Appalachia Ohio. You may have seen some of this information
before as I've sent various drafts to Saunders Miller of the SBA and
Judy Kennedy of NAAHL. Our investment activity in both of these
locations, and throughout the nation, is driven primarily by the Banc
One Community Development Corporation (CDC) with some assistance from
our national Business Banking group. Mary and I will do whatever we
can to help support the President's visits to both locations. As I
mentioned, we may have more success in Phoenix as we have a
substantial business presence there. Unfortunately, we do not
operate in eastern Kentucky, but will do our best to get appropriate
Bank One representation to that site so investments in the broader
Appalachia region can be highlighted. Please keep us posted as to
the times, locations and other logistics of the stops as they are
finalized. You can reach me at this e-mail address, or at
614-244-0344. Thank you.
(See attached file: ONE.doc)
Lynn Gellermann
Vice President
National Small Business Liaison
Bank One Corporation
JUN-24-1999 11:37 FROM: WILHELM + CONLON
312 855-0488
TO: 17739356208
P.001/004
70 East Lake Street
Suite 1700
Chicago, Illinois 60601
Wilhelm & Conlon
(312) 855-8500
(312) 855-0488 fax
Public Strategies
Fax
To: JOHN KAPLAN, NEC From: KAREN MAY
Fax: (202) 456-2223
Pages:
3
Phone (202) 456 - 5360
Date:
4-24-99
Re: SOUTHERN OHIO ANNOUNCEMTS CC:
Urgent
For Review
Please Comment
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JUN-24-1999 11:37 FROM: :WILHELM + CONLON
312 855-0488
T0:17739356208
P.002/004
Karen May
312-855.
The President's Trade Mission to America:
85-
x19 19
Why Athens County?
Bern Istande
The timing is ideal for a visit from the President to southeastern Ohio, specifically Athens
will
County. Appalachian Ohio is an area that has had to make the very difficult transition out of a
coal-based economy, but it is now becoming a model of hope for underserved America. On the
chaih
strength of the ingenuity and industriousness of its local entrepreneurs and businesspeople, the
region stands on the verge of an economic renaissance.
(Rick Leh otan) Lehrand
There is no single area that the President could visit that would so well demonstrate both the
promise and the process of the Administration's New Market Initiatives.
Dave Utali
Opportunities for Announcements
There is a long list of initiatives underway in Southcastern Ohio, many of which are now
culminating in major investments and plans, after months of discussion and bridge-building. The
timing is such that the President's visit to Nelsonville (Athens County) could coincide with the
announcements and publicity currently being planned. The projects listed here include public-
private partnerships, non-profit, and for-profit activities, all related to developing new markets in
an underserved region.
The Appalachian Ohio Development Fund announces a partnership and investment by
Bank One. Bank One is willing to accelerate its investment process and publicly announce
its intent to become a leading investor, in conjunction with a Presidential visit to
southcastern Ohio. The creation of this community development venture capital vehicle
grew out of the Economic Roundtables led by Reverend Jesse Jackson, Wilhelm & Conlon
Public Strategies's efforts in the region. and the Appalachian Regional Commission's focus
on developing entrepreneurism and investment capital for Appalachia. This project
highlights the need for new resources and strategic alliances along the lines of the "New
Market Venture Capital" vehicle component of the New Markets Initiative. The Fund
combines small equity investments, technical assistance, and a sectoral focus to facilitate
growth for local businesses in a unique partnership with local educational institutions,
government, and economic development organizations. It is modeled after the nearby
Kentucky Highlands Investment Corporation, which currently advises the Ohio Fund.
Private venture capital fund invests $500,000 in minority woman-owned specialty foods
company in Appalachian Ohio. Pasta Fresca is a small, minority-owned business that was
nurtured by an organization called ACE-Net (Appalachian Center for Economic Networks).
When Rainbow/PUSH and Wilhelm & Conlon Public Strategies organized the Second
Appalachian Economic Roundtable, Joanne, Pasta Fresca's owner, met a Chicago /
Cleveland-based venture capitalist who saw the potential of her business. The Northcoast
Fund and Pasta Fresca have just closed an investment of a half-million dollars, again
underscoring the need for small equity investment vehicles, new strategic alliances, and
programs to facilitate these burgeoning partnerships. In his State of the Union address, the
President spoke of building bridges from Wall Street to Appalachia - connecting the
JUN-24-1999 11:37 FROM: WILHELM + CONLON
312 855-0488
TO: 17739356208
P.003/004
national financial community to this nation's underserved areas. The President can now
cross initiatives. one of these bridges and speak of the progress that is already being made on these
Ohio University expands its Airport: The Secretary of Transportation visited Athens in
April to discuss his commitment to working with Ohio University to extend its airport to
accommodate larger corporate and cargo planes. This airport would serve as a hub for
regional economic development and is an important symbolic and practical piece of the
continuing infrastructure development of this region. It is the Administration's
commitment to this project that has made it a possibility, and again highlights the potential
of strong public-private partnerships.
Bank One and Enterprise Development Corporation announce a new microenterprise
credit facility. Bank One is ready to close on a $600,000 credit facility to Enterprise
&
Development Corporation (EDC), an experienced microlender based in Athens County.
This CDFI administers several loan funds and other projects, and represents a critical link in
the goal of providing a seamless chain of financing resources for businesses and individuals
facing great challenges. In addition to highlighting the need for increased funding for the
CDFI program, EDC could be a candidate for one of the new Small Business Lending
Company licenses as part of the New Markets Initiative.
Bank One investment in SBIC to target low-moderate income areas: Bank One is
getting ready to close on a $5 million investment in DCC Growth Fund, a large national
Fund holding two SBICs that will have a regional presence in Ohio. The investment
highlights the new LMI investment tool for the SBIC program as another component of
the New Markets Initiative. Bank One and the Fund have agreed to an MOU which calls
for special efforts to invest in women and minority owned firms. and to firms located in LMI
zones.
Bank One investment in SBIC focused on women-owned businesses: Bank One is the
lead investor ($3 million) in Capital Across America, the first SBIC in the nation to focus on
women-owned businesses. Capital Across America is headquartered in ncrby Nashville,
Tennessee, and docs serve Ohio.
Historical Significance: Legacy, Challenges, and Hope
Southeastern Ohio (and the Nelsonville area in particular) has a history of natural resource
extraction, including iron ore, coal, and lumber. These commodities and the wealth that they
generated by and large left the arca, and left huge resource gaps for those who worked the mines
and toiled for survival. High unemployment persists. Crumbling, under-resourced schools
struggle to educate the region's children.
Yet within these areas there are individuals and businesses with the talent, courage, and quality
product that would permit them to grow, create jobs, and create new wealth. These businesses,
"hometown" businesses that are indigenous to the arca, create the kind of economic growth that
2
JUN-24-1999 11:38 FROM: WILHELM + CONLON
312 855-0488
TO: 17739356208
P. 004/004
is shared and sustainable-income and wealth that is likely to remain in the region. This
outcome has rarely been realized in these parts of our country, where coal was once king.
In 1964, Lyndon Johnson chose Athens, Ohio as the site to announce the major initiatives of his
War on Poverty. A sense of history would suggest the choice of Athens for a presidential visit
announcing progress on his New Market Initiatives. This choice will highlight the fact that
although the same principle of concern for others is at the heart of both the War on Poverty and
the New Market Initiatives, tremendous progress has been made on developing effective tools of
economic empowerment. Groups like ACE-Net and EDC (both mentioned above) have made
great strides in the empowerment of the region's residents through innovative strategies to
nurture young businesses.
Now these groups are collaborating with Wilhelm & Conlon Public Strategies. Ohio University,
Hocking Technical College (in Nelsonville), the Appalachian Regional Commission and others
to create an investment vehicle that will truly serve the budding entrepreneurs and small,
expanding businesses-the hidden treasures of Appalachia that hold the hope for the region's
future. The Appalachian Ohio Development Fund represents a unique opportunity to highlight
SO much of the best thinking in our country about how to tap the untapped market, uncover the
development. hidden talents, and build lasting public-private partnerships that will result in truly sustainable
The President's "Trade Mission to America" trip is an ideal opportunity to also highlight the
importance of the private sector in these efforts, and the potential for real profits and growth.
Bank One offers an excellent example of the enlightened perspective on the New Markets
Initiative, and they should be commended for their leadership role in the community
development investments listed above. John McCoy, Bank One's CEO, would be an excellent
advocate for this perspective, and would certainly enjoy the opportunity to travel with the
President's private sector delegation.
Wilhelm & Conlon Public Strategies, Bank One, and all of the partners mentioned here would
welcome the opportunity to provide further details on any or all of these initiatives. We believe
that the President and the CEOs that will accompany him would enjoy their trip to Athens
County-the beauty of the land and its people, the rich history and culture, and the tremendous
stories of exciting new developments in the New Markets of Appalachia.
For further information, please contact:
David Wilhelm, President, or Karen May, VP for Economic Development, at Wilhelm & Conlon
Public Strategies: phone (312) 855-8500, email [email protected] or [email protected]
Lynn Gellermann, Small Business and Microcredit Liaison, Bank One Corporation: phone (614)
244-0344. email Lynn R [email protected]
3
NAAHL
TEL : 2024295150
Jun 23'99
16:32 No. 031 P.01
National Association of Affordable Housing Lenders
1200 19th Street, NW, Suite 300
Washington, DC 20036
Phone (202) 429-5150; Fax (202) 857-5320
E-mail: [email protected]
Fax Cover Sheet
To:
Lisa Green
Firm:
NEC
Fax:
202-456-2223
From:
Judy Kennedy
Pages (including cover): 2
Date:
June 23, 1999
Comments:
I have not received the one from California yet.
NAAHL
TEL: 2024295150
Jun 23'99
16:32 No. 031 P.02
Bank One Investment Activity in Arizona
June 22, 1998
The Banc One CDC just approved a $1.5 million investment in Magnet Capital, the first small
business investment company, or SBIC, in the nation to focus on the SBA's recently launched
"New Markets" program which features more flexible funding and investment terms for small
businesses operating in low- and moderate-income areas, or employing persons who reside in
those communities. Magnet Capital will provide growth capital in the form of mezzanine
financing to small businessos in Arizona, and possibly adjacent states such as Utah and Colorado.
Investments will range from $250,000 to $1.5 million.
In 1998, under the SBA Microloan Program, Bank One provided a $640,000 credit facility to
PPEP Microbusiness, Inc. (PPEP/MICRO), one of the longest running and most successful
microenterprise organizations in the country. The complex credit facility included flexible
repayment terms, competitive pricing and a three-way partnership between PPEP/MICRO, the
SBA and Bank One. By extending very small loans, often only $3,000 or $4,000, and technical
assistance to rural entrepreneurs in southern Arizona, PPEP/MICRO has built a loan portfolio
totalling more than $1.5 million. Bank One provided further support in the form of a $30,000
grant and the donation of a "micro loan van" to help PPEP/MICRO reach more entrepreneurs
through a mobile office. PPEP/MICRO was the 1998 winner of the Presidential Award for
Excellence in Microenterprise Development in the category of access to credit.
In 1998, Bank One also provided Chicanos Por La Causa (CPLC) with a $500,000 credit
facility under the SBA Microloan Program. CPLC is the leading microlender in Phoenix and
northern Arizona. Bank One also provided CPLC with a $30,000 grant and a "mobile loan van"
to further extend CPLC's reach.
Bank One supports SELF-HELP. a microenterprise organization that provides technical
assistance and welfare to work programs in Phoenix. Bank One's support includes annual grant
monics of $10,000 and complimentary office space in the lobby of Bank One, Arizona's
headquarters.
In 1992, Bank One became the lead investor in the Arizona Multibank CDC by providing $3
million to capitalize this now long-standing financial intermediary. The Arizona Multibank CDC
has financed over 165 small businesses and projects totalling more than $11 million since its
inception. Loan amounts of $500 to $500,000 are available to businesses and housing projects
that do not qualify for conventional bank financing.
Bank One is also the lead sponsor for Bank One Ball Park, home of the Arizona Diamondbacks,
which has energized economic development and community revitalization throughout downtown
Phoenix.
JUL-02-1999 17:13
INTERNAL/EXTERNAL COMM.
132 732 5976
P.02/04
BANK ONE CORPORATION
One First National Plaza
Chicago, Illinois 60670
News Release
BANKEONE
FOR IMMEDIATE RELEASE
Contact:
Thomas A. Kelly
(312) 732-7007
PRESIDENT CLINTON PRAISES BANK ONE
FOR LEADERSHIP IN COMMUNITY DEVELOPMENT
CHICAGO, July 5, 1999 -- President Clinton today praised BANK ONE
CORPORATION for its leadership and innovation in community development, during a three-
day presidential trip to promote public-private partnerships and the administration's New
Markets program. The program is designed to stimulate additional private investment in central
cities and rural areas.
"Bank One's ongoing work with local and regional small business development
organizations creates development opportunities to strengthen our communities," said John B.
McCoy, President and CEO of Bank One. "Our programs in Appalachia -- and elsewhere in the
country -- illustrate Bank One's leadership role in developing and funding such programs."
During the first stop of his trip, in rural Kentucky, Clinton praised Bank One for working
with the founding principals of the Appalachian Ohio Development Fund, which will provide
equity financing and technical assistance to small businesses in southern Ohio.
Bank One is teaming with Wilhelm & Conlon Public Strategies, Ohio University, the
Appalachian Regional Development Commission, Hocking Technical College, Kentucky
Highlands Investment Corporation and ACE-net. Bank One is exploring a significant investment,
as much as $1 million this year, in the Appalachian Ohio Development Fund and will continue to
play a leadership role in its development.
(more)
Puper
JUL-02-1999 17:14
INTERNAL/EXTERNAL COMM.
132 732 5976 P.03/04
-2-
Other Bank One community development projects include:
IN APPALACHIA OHIO
Bank One recently made a $600,000 loan to Enterprise Development Corporation, one of
the oldest and most productive microenterprise development organizations in the country.
Bank One will also provide the organization with a $45,000 grant to help establish its loan
loss reserve account.
Bank One has committed to invest $5 million in DCC Growth Fund, a large national fund
with a Midwest regional office in Akron, Ohio. Bank One and DCC Growth Fund will focus
on special efforts to invest in women and minority owned firms, and to firms located in low-
to moderate-income zones.
Bank One is the lead investor (at $3 million) in Capital Across America, the first small
business investment company in the nation to focus on women-owned firms. Headquartered
in nearby Nashville, Tenn., Capital Across America serves several contiguous states,
including Ohio. A Bank One executive serves on the both the board and investment
committee for this fund.
IN ARIZONA
In 1998, under the SBA Microloan Program, Bank One provided a $640,000 loan to PPEP
Microbusiness, Inc., a leading microenterprise organization. The PPEP/MICRO, the Small
Business Administration and Bank One have a three-way partnership that includes flexible
repayment terms and competitive pricing. By extending very small loans -- often only
$3,000 or $4,000 and technical assistance to rural entrepreneurs in southern Arizona,
PPEP/MICRO has built a loan portfolio of more than $1.5 million.
(more)
JUL-02-1999 17:14
INTERNAL/EXTERNAL COMM.
132 732 5976
P.04/04
-3-
In 1998, Bank One provided Chicanos Por La Causa with a $500,000 loan under the SBA
Microloan Program. Bank One also provided a $30,000 grant and a "mobile loan van" to
further extend the reach of Chicanos, the leading microlender in Phoenix and northern
Arizona.
Bank One supports SELF-HELP, a microenterprise organization that provides technical
assistance and welfare-to-work programs in Phoenix. Bank One's support includes annual
grants of $15,000 and free office space in the lobby of the bank's Arizona headquarters.
In 1992, Bank One provided $3 million to become the lead investor in the Arizona
Multibank. The Multibank has financed more than 165 small businesses and projects
totaling more than $11 million. Loan amounts of $500 to $500,000 are available to
businesses and housing projects that do not qualify for conventional bank financing.
Bank One is the lead sponsor for Bank One Ball Park, home of the Arizona Diamondbacks,
which has energized economic development throughout downtown Phoenix.
BANK ONE CORPORATION (NYSE: ONE), is the nation's fifth largest bank holding
company, with assets of more than $250 billion. Bank One offers a full range of financial
services to commercial and business customers and consumers. It is the world's largest Visa
issuer, the second-largest consumer and commercial finance company, the third-largest bank
lender to small businesses, and the third-largest bank mutual fund company. It operates more
than 2,000 offices and a nationwide network of ATMs. It can be found on the Internet at
www.bankone.com.
###
TOTAL P.04