Fort Wayne’s Brightpoint Development Fund lands $2M investment
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Brightpoint Development Fund, a Fort Wayne-based nonprofit that provides business loans, financial education and housing development services, has received a $2 million equity equivalent investment from Old National Bank.
The funds will support lending to individuals through the Community Loan Center of Northeast Indiana and expand small-business lending and financial literacy courses, according to a news release.
“Old National Bank’s investment in Brightpoint Development Fund will significantly expand our ability to provide affordable capital to individuals and small businesses who are often excluded from traditional financing,” Matt Crouch, vice president of community economic development for Brightpoint, said in the news release.
An equity equivalent investment, often referred to as EQ2, is a financial tool with characteristics similar to equity investments but for Community Development Financial Institutions such as Brightpoint. Unlike traditional equity, which involves direct ownership of shares, an EQ2 is structured as a loan but allows the financial institution to leverage additional debt capital and increase lending.
“We appreciate the opportunity to partner with the Brightpoint Development Fund,” said Justin Libey, community banking relationship manager and vice president at Old National Bank. “This investment in Brightpoint is truly a commitment to our community, with Brightpoint being the administrator of so many impactful and vital services. We trust Brightpoint will maximize these funds to improve the lives of those in need.”
Founded in 2011, Brightpoint Development Fund is a subsidiary of Brightpoint, a private nonprofit organization that provides housing, utility and child care assistance and other services to help people overcome poverty in northeast Indiana.
Old National Bank, with headquarters in Chicago and Evansville, is the fifth largest commercial bank based in the Midwest, according to its website.