SAN ANTONIO BUSWESS DEVELOPMENT FUND 

(SABDF) 

NationsBank and Bank of America have been strategic partners in ensuring the continued success of the 

SABDF. Both institutions were involved with the initial capitalization ofthe SABDF. Presently the 

SABDF has $2.75 million of capital under management provided by our bank consortium. Ofthat 

NationsBank has provided $725,000 in permanent and borrowerd capital. Since 1994, our capital base has 

nearly tripled thanks to our community bank parhns. Its through these innovative public and private 

partnerships that we are able to bridge the credit and capital needs of small, minority and women-owned 

business in San Antonio. 

Are we effectively impacting OUT community? You be the judge. In 42 months of lending, the SABDF has 

made 45 loans for $2 million to small, minority and women-owned businesses leveraged with $6.8 million 

in bank financing. Created and preserved over 600 jobs and more importantly provided an access to credit. 

There are many other services that are bank partners continue to provide that are too numerous to mention. 

In 1997 and 1998 James Field from NationsBank’s Community Development Deparhnent in Dallas 

facilitated board retreat. His staff in Sarasota, Florida continues to provide on-going technical support to 

emerging CDC’s and CDFl’s like the SABDF. On July 24’ in San Antonio NationsBank and theSABDF 

will host a statewide CDCiCDFl conference introducing the CDCiCDFl study commissioned by 

NationsBank and conducted by Shorebank Advisory Services. 

If I can be of any further assistance to your office do not hesitate to call me at 210-738-03 12. 
TESTIMONY OF LIOYD 6. SMITH 

PRESIDENT/C.E.O. OF THE MARSHALL HEIGHTS COMMMUNITY 

DEVELOPMENT ORGANIZTION INC. 

BEOFRE THE 

FEDERAL RESERVE BANK OF SAN FRANCISCO 

: GOOD AFTERNOON, MR CHARIMAN AND MEMBVERS, MY NAVE IS LIOYD 

D. SMITH PRESIDENT & C.E.O. OF THE MARSHALL HEIGHTS COMMUNITY 

DEVELOPMENT ORGANIZATION INC. LOCATED AND SSERVICE IN WARD 

SEVEN, WAHSINGTON D.C. 

MHCDO IS A 19-YEAR-OLD, COMMUNITY DEVELOPMENT CORPORATION, 

SERVING A POPULATION OF OVER 58 THOUSAND. 

MHCDO is a full service CDC, providing business development, MICRO lending, light 

industrial development, with incubators, housing development, from new and rehabed 

single family for sale to multi family units. We have produced nearly 100 single-family 

homes and nearly 500 multi family rehabilitated units. We provide socials services, a 

child welfare programs and a 59-unit single room accupancy facility. We have 

redeveloped a nice acre, 165,000 S.F. commercial shopping with 2 banks and various 

other retail/commercials products, among other programs, such as a new community 

school. 

’ I AM ALSO CHAIRMAN OF A NEW AND THE FIRST COMMUNITY 

DEVELOPMENT BANK TO BE ORGANIZED IN THE DIST. OF COLUMBIA, 

WASHINGTON D.C. WHICH IS CITY FIRST VANK OF D.C. N. A. WHICH IS 

SCHEDULED TO OPEN NEXT MONTH. 

On behalf of the Board of Directors of the Marshall Heights Community Development 

Organization, Inc., I am pleased to lend our strong support of the Nations Bank 

acquisition of the Bank America corporation. 

MHCDO has enjoyed a strong and rewarding partnership with Nations Bank and its 

predecessor, American Security and Trust Company for more than eleven years. We 

started with a $250,000 line of credit for our housing program for in fill development that 

has grown to $750,000 line of credit, based on our demonstration of increased production 

and credit capacity. 

We jointly developed a creative partnership in our Kenilworth Light Industrial Park 

ownership, as a result of a 1994 CDC Tax Credit award from HUD, as a component of 

the Enterprise, Empowerment program, which featured a $lmillion dollar loan for 10 

years at 1% interest. This was one of the first and largest deals in the country, since only 

20 CDCs, nationwide were given the $2million CDD tax credit award, In additional, 

Nations Bank CDC has invested an additional $1 million in equity, in this project at 

1075, 1235 and 1239 Kenilworth Avenue, NE. 
We are about to commence a multi-year, for sale, new housing development together in 

the DeanwoodlBurrville area. Nations Bank will provide too much needed equity and 

MHCDO will provide construction management, marketing, sales and comprehensive 

housing counseling services. This partnership will enable MHCDO to increase the scale 

of our for sale activities and an improved ability to target our efforts. 

Nations has provided several years of grant support, in particular a three -year 

commitment of $15,000 per year for the transitional housing program that enabled the 

leveraging funds from HUD. 

They (Nations) have been innovative, creative and have tried to find ways to say, “this 

can be done”. Nations Bank has provided much needed equity, debt and contributions. 

We have maintained and expanded an important and genuine partnership over the past 

eleven years. 
. . : 

City First Bank of D.C.&A 

l 

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Chairman 

N.C.I.F. -INVESTMENT 1 MILLION 

ATM-SHARING AGREEMENT 

FURNITURE & ASSISTANCE 

HOLDING DEPOSK5 _ 

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