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Merrill Lynch Community Programs Spur Economic and Nonprofit Growth

Mercer Business, Apr 01, 2003 by Kruse, Lisa Robyn

Merrill Lynch is well known for its investment advice, but fewer may be aware of the company's community investments that have helped build affordable housing, develop local businesses, and revitalize neighborhoods.

"Responsible citizenship is one of our core principles here at Merrill Lynch," said Helene Garcia, vice president of Merrill Lynch Community Leadership. "It fulfills our commitment, not only to our employees, but to our community to be a good corporate neighbor."

Merrill Lynch & Co., Inc. is one of the world's leading financial management and advisory companies, with offices in 38 countries and total client assets of approximately $1.4 trillion. As a financial services company, Merrill Lynch is a leading global underwriter of debt and equity securities and strategic advisor to corporations, governments, institutions and individuals worldwide.

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The company has more than 11,000 employees in New Jersey, housed in 3 million square feet of office space and major office campuses in Jersey City, Princeton/Plainsboro and Hopewell Township.

To help spur community involvement, the company has two units: the Merrill Lynch Community Development Company L.L.C. and the Community Leadership Program. While the programs have different approaches, both seek to improve the communities within the region.

The Community Development Company makes loans and a limited number of grants to aid in the growth in areas such as affordable housing, small business development, and neighborhood revitalization. The Community Leadership Program, on the other hand, provides philanthropic and charitable support.

"In many ways, we try to be fairly distinct," said Terri Ludwig, president of the Community Development Company. "What (the CDC is) focused on is lending and investment, in low- and moderate-income communities, rather than philanthropy. But there are a number of programs where it makes sense to collaborate, and we also try to leverage the resources of the firm accordingly."

The goal of the Community Development Company, Ludwig said, is to use Merrill Lynch's intellectual and financial capital to help solve community problems. It seeks to leverage that capital by partnering with government agencies, nonprofits, companies and other financial institutions on specific projects and investments. Its focus areas include Mercer, Middlesex, Somerset, and Hunterclon counties. Within Mercer County, Trenton is a targeted community.

"We've done a significant amount of community investment in Mercer County," Ludwig said. "We formed the Community Development Company to add focus to our efforts ... to look for partnerships that could impact affordable housing, primary care development, education, economic development, small business development and neighborhood revitalization."

The company's activities in part are due to federal legislation that mandates banks to reinvest in the communities that they serve, although Ludwig said that the Community Development Company "goes above and beyond."

"What we are essentially is an arm of the bank that handles reinvestment, and seeks opportunity in these areas," Ludwig said. "We focus on low- and moderateincome communities, to bring the financial capital of Merrill Lynch to bear on complex community challenges, as well as to bring creative solutions to those problems."

Its initiatives in Mercer County include:

* Serving on the board of the Economic Development Corporation for Trenton, which Merrill Lynch helped establish, to stimulate Trenton's economy and provide an independent third party among investors, developers and government representatives.

* Establishing the "Trenton Initiative" to strengthen the capacity of community development corporations and fuel the construction and rehabilitation of affordable housing, commercial space and community facilities.

* Meeting with the Trenton Banking Group and other local community banks to explore ways the CDC might work and partner to provide community development lending and investing opportunities.

* Contributing to the Funding Pool for the state's first Individual Development Account program, established by the State Department of Community Affairs. The goal of the IDA program is to provide financial education, enable lowincome families to build assets and achieve economic well-being. IDAs are matched savings accounts eligible for post secondary-education and training, business capitalization and homeownership.

* Lending to small businesses and nonprofit organizations through the New Jersey Community Loan Fund and Mercer County Loan Fund, two nonprofit lending intermediaries headquartered in Trenton.

* Investing in low-income housing tax credits with a variety of tax credit Sponsors to support the rehabilitation and redevelopment of affordable housing.

* Providing grants and services to a variety of local community development organizations, including the Regional Business Assistance Corporation, the Housing and Community Development Network and the Regional Planning Partnership and participate in Trenton Small Business Week and the Mercer County Small Business Forum.

Merrill Lynch Community Programs Spur Economic and Nonprofit Growth

Mercer Business, Apr 01, 2003 by Kruse, Lisa Robyn

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