History of Seedco Financial

Seedco was created in 1986 to provide a link between urban institutions, such as hospitals and universities, and community development. During Seedco's first seven years, its Loan Fund was the centerpiece of Seedco's work. To support our early lending activities, the Ford Foundation provided a sizable program-related investment. Again with Ford Foundation support, Seedco launched a special financing and technical assistance program for Historically Black Colleges and Universities (HBCUs) to link them more effectively to community development activities. Other early lending initiatives included support for nonprofit employment and training initiatives and coordinated neighborhood development efforts.

In the late 1990s, Seedco's community development lending activities became focused on substantive areas including anti-predatory lending and affordable homeownership, a nonprofit venture network, and efforts to encourage business incubation in low-income communities. The Department of Treasury approved Seedco's status as a Community Development Financial Institution and offices were established in Birmingham, AL and Memphis, TN.

Post 9/11
After the disaster of 9/11, Seedco significantly and rapidly expanded its lending capacity to provide loans, grants, wage subsidies, and technical assistance to over 1,400 Lower Manhattan small businesses with fewer than 50 employees between October 2001 and the end of June 2004.

2002 to Present
In 2002, with financial assistance from the U.S. Treasury Department's CDFI Fund, the organization expanded its community development lending presence throughout the state of Alabama, and in 2003, the same happened in Memphis, Tennessee. In that same year, Seedco was also awarded a first round New Markets Tax Credits (NMTC) allocation of $10 million, through its for profit the Empowerment Reinvestment Fund, LLC. This was subsequently increased to $35 million in the second round of allocations, and was further increased to $75 million this year.

In 2005, because of the increased fund size and level of lending activity, Seedco spun off its Loan Fund into a separate entity that is entirely devoted to financing activities. Seedco Financial Services, Inc is certified as a CDFI by the U.S. Department of Treasury. It is a wholly owned subsidiary of its parent company, Seedco, a national community service intermediary that creates opportunities for low-wage workers and their families.

Today, with a combined annual budget of about $60 million, Seedco and Seedco Financial work together to combine financing, technical assistance, and model economic development programs with asset building/affordable homeownership, and workforce development.