Los Angeles Homeless Services Provider Refinances Facility with CDFI Support
Client: LA Mission
Client Location: Los Angeles, CA
CDFI: Clearinghouse CDFI
CDFI Service Area: California
Founded in 1936 to address the needs of the homeless community in Los Angeles, Los Angeles (LA) Mission is among the nation’s largest service providers for those experiencing homelessness, providing shelter, meals, and other critical rehabilitation services. Today, LA Mission continues to address the growing issue of homelessness facing Los Angeles County.
The organization exists to provide help, hope, and opportunity to men, women, and children in need—a purpose that perfectly aligns with Clearinghouse CDFI’s mission to help improve lives through community development financing.
When LA Mission needed short-term money to fund ongoing services and cash flow needs, as well as refinancing for the Mission’s facility, the organization received a referral from Cathay Bank—one of LA Mission’s investors—to Clearinghouse CDFI. After learning about LA Mission’s need for capital, Clearinghouse CDFI worked with the organization and ultimately provided them with more than $5.9 million in financing in July 2019 to refinance existing debt and preserve ongoing operations.
“The Los Angeles Mission is grateful for financial help from the Clearinghouse Community Development Financial Institution in providing $1.1 million in short-term money to fund the Mission’s on-going services annual cash flow needs,” the LA Mission team shared. “Refinancing the Mission’s facility loan makes a big difference in Mission finances. This vital support comes in the form of a 10-year $4.8 M real estate loan. These financial adjustments allow the Mission to continue to serve thousands of those experiencing homelessness with shelter, meals, and supportive services.”
The funds from Clearinghouse CDFI allow the Mission to continue providing 390,000 meals, 126,000 nights of shelter, 136,000 showers, and 109,000 pieces of clothing on an annual basis to individuals and families who are homeless and in need.