Philadelphia Industrial Development Corporation Joins National Network of Community Lenders

Map of OFN members (Image via Opportunity Finance Network)

The Philadelphia Industrial Development Corporation (PIDC) has joined a national network of community financial development institutions (CDFIs). The move coincides with the 53-year old development corporation’s shift towards making more comprehensive investments in low-income communities.

The network is called the Opportunity Finance Network, which is based in Philadelphia but has members throughout the nation. Other local members include Finanta, Entrepreneur Works and The Reinvestment Fund.

PIDC is a nonprofit partnership between the Greater Philadelphia Chamber of Commerce and City of Philadelphia. It has long focused on broad economic development goals such as job creation as opposed to specific community needs such as food or health care access.

“We’ve been lending to small businesses for over 50 years, but its mostly been government money thats targeted specifically to job-creation and fixed-asset-type investments,” said John Grady, president of PIDC.

He added that PIDC has historically funded large industrial and commercial projects. In 2012, the development corporation became certified as a CDFI – an entity designed to bring capital into low-income communities – to expand beyond these activities.

“I think what the certification will do is open up more resources to really target more comprehensive investments in [low-income] communities,” Grady said.

Already, PIDC is working with commercial banks and other private sources, such Goldman Sachs 10,000 Small Businesses program to amp up investment in low-income communities.

“We are in the early stages of investing in longer-term, multi-phase developments that might include schools and health centers and fresh food and affordable housing in a coordinated-type fashion, as opposed to only being able to come in and address one of those activities at a time,” Grady said.

Joining OFN was natural extension of certifying as a CDFI, Grady added.

“By being a part of the OFN network they are tapping into a national depository of talent and resources,” said Mark Pinsky, president and CEO of OFN.

Pinsky explained that OFN has specific accountability standards and often has to turn organizations away with instructions for how they can become eligible. With PIDC’s years of experience, it had no problem becoming a member. PIDC hopes to partner with other local members.