U.S. Department of the Treasury

(Archived Content)

The Department of the Treasury today announced that businesses in 12 new communities are eligible for loans or loan guarantees through the United States Community Adjustment and Investment Program (CAIP) to help these businesses create new job opportunities. These communities join the 35 communities that were declared eligible inAugust.

In (STATE), businesses in the (CITY, CITY, CITY) are eligible for theseloans or loan guarantees.

The CAIP was established to encourage and foster economic opportunitieswithin communities that have experienced job losses related to implementation of the NorthAmerican Free Trade Agreement (NAFTA). The CAIP works through the coordinated efforts ofthe United States Government and the North American Development Bank (NADBank) toprovidebusiness financing in areas with job displacement and few existing job opportunities.

The NADBank is an international financial institution jointlycapitalized and governed by the United States and Mexico to finance environmentalinfrastructure projects along the U.S./Mexico border and provide financial assistance fordomestic community adjustment and investment in both countries. Approximately ten percentof the United States’ contributions to the NADBank (approximately $20 million) isearmarked for CAIP.

The twelve communities eligible for CAIP loans or loan guarantees wereidentified based on statistics provided by the Department of Labor NAFTA-TransitionalAdjustment Assistance (NAFTA-TAA) program and the 1996 unemployment data, as estimatedbythe Bureau of Labor Statistics. Businesses in these communities may be eligible to borrowdirectly from the NADBank or other federal loan guarantee programs operated by the UnitedStates Department of Agriculture and the Small Business Administration.

Businesses in other communities will be eligible for future CAIPfinancing. The criteria includes: (1) evidence of a significant job loss connected to thepassage of NAFTA and a substantial continued need for transition assistance; (2) theproject for which the funding is being sought will create new private sector jobs; and (3)the business lacks access to private sector lending at reasonable terms and conditions.

Communities, businesses or financial institutions that are interestedin the CAIP should contact the NADBank Los Angeles Office, Tel: (562) 908-2100, Fax: (562)908-2110 or write to NADBank, 13191 Crossroads Parkway North, Suite 275, City of Industry,CA 91746.