TMF represents a tremendous opportunity for financial institution investment because of the community development impacts of TMF investments, the competitive advantages the investment provides, and the cost effective manner in which TMF financing is delivered.

Investment in TMF spreads the risk among investor institutions, distributes the operating costs and provides for the concentration of expertise necessary to succeed. Investment options for investors/lenders include equity only; equity and loans with the loan amount not to exceed five times the equity investment over time; and non-voting stock. The minimum new equity investment is $50,000, and the minimum loan pledge amount is $250,000. Loan pledges would generally be five times the equity invested over time.

TMF is recognized by the U.S. Department of Treasury as a Community Development Financial Institution (CDFI), enabling investors to compete for funds available under the Bank Enterprise Act (BEA). Further, investment in TMF counts towards the Community Reinvestment Act (CRA) investment test. Loans to TMF count under the CRA loan test. In the years subsequent to the investment and/or loan to TMF, the funds re-lent count towards the CRA lending test. Investment in TMF is recognized by bank regulators as a “qualified investment.” This investment may be carried on the books under “other assets” rather than expensed in the year it was made. In securing TMF’s designation as a CDFI by the U.S. Department of Treasury, TMF was authorized to serve 225 investment areas throughout Texas. All of these investment areas are low- to moderate-income (LMI) areas that factor into a bank’s CRA rating.

TMF's ability to provide up to $500,000 in mezzanine financing to enhance bank lending, or the provision of $300,000 in “stand-alone” financing to worthy but near-bankable clients, provides TMF investors with competitive advantages. These competitive advantages are enhanced by TMF partnerships with other CDFIs and business lending community development corporations (CDCs) in the major metropolitan areas, and the potential to partner with local economic development corporations throughout Texas. TMF also has the ability to serve 400,000 businesses outside major metropolitan areas and rural areas because it is a statewide entity.

For more information on investment opportunities or to receive an Investor Information Package, contact:

Victor Elmore
President
214.943.5900 Ext. 105
1-877-MONYTMF
E-Mail