Question

What are some distinguishing features between a traditional commercial lender and a community development load fund?

What factors have contributed to racial residential segregation? What are the trends in racial and income residential segregation?

Answer 1

What are some distinguishing features between a traditional commercial lender and a community development load fund?

A traditional commercial lender is a traditional bank which provides loans to help achieve your financial objectives. This loan can be used to make emergency payments, finance facility expansions, manage equipment costs, or acquire new assets. Traditional bank loans are less expensive due to lower interest rates, ultimately making traditional bank products more beneficial to your business.

A community development load fund seeks to provide current income consistent with the preservation of capital and enable institutional investors that are subject to regulatory examination under the Community Reinvestment Act of 1977, as amended to claim favorable regulatory consideration of their investment. The fund invests primarily in securities issued or guaranteed as to principal and interest by the U.S. government or by its agencies, instrumentalities or sponsored enterprises and other investment grade fixed income securities. It invests at least 90% of its net assets in debt securities and other debt instruments.