Politicans join Shorebank in bringing new capital fund here

ILWACO – Shorebank Enterprise Pacific is getting ready to spread the wealth in a big way.

Managers at the Ilwaco-based institution received word last week of an $8 million boost for economic development on the coast.

The money was secured in a competitive application process hosted by U.S. Department of the Treasury’s Community Development Financial Institutions Fund. Shorebank’s application was supported by several public and private groups, the Lower Columbia’s two congressmen, U.S. Rep. Brian Baird and David Wu, and assisted by Oregon State Rep. Betsy Johnson, D-Scappoose.

Johnson commended John Berdes, president of Shorebank Enterprise Pacific, for his efforts in securing the cash. “Shorebank seeks out the kind of sustainable projects that other communities only dream about. They help the economy while preserving the environment and bring a sense of community to the region,” she said.

The money is one of 67 awards nationally totaling $3.5 billion that were announced by U.S. Treasury Secretary John Snow.

“We are honored to be among the small group of allocated organizations across the country and look forward to supporting projects that provide jobs for families on the coast,” Berdes said.

He said the money is a welcome boost to an area hit hard by declines in fishing and logging.

“I don’t think we would have been successful without the active support of the entire federal delegation, especially members representing coastal communities who recognize the special challenges we face as traditional economies have shifted over the past two decades.”

He commended Johnson’s intervention in helping the application to overcome obstacles. “She helped us with prospective tax credit investors that we wouldn’t have had access to because she understood the importance of the private sector interest,” he said.

The bank manager noted that the $15 billion federal allocation program is only one-third completed.

“We are going back for more!” said an unusually excited Berdes.

U.S. Sen. Patty Murray said the money will be crucial in helping to revitalize the coast.

“I am extremely pleased to support Shorebank Enterprise Pacific’s continuing efforts to ensure our rural coastal communities have the tools that are needed to make it through these tough economic times,” she said.

Drawn from the Treasury Department’s New Markets Tax Credit Program, the award grants Shorebank the authority to issue tax credits to individuals or corporations who invest in local businesses and community development. Shorebank, which has offices in Ilwaco, Astoria and Coos Bay, will broker the investments in Pacific and Grays Harbor counties, as well as Oregon’s Clatsop and Tillamook counties.

Berdes explained that the program allows another bank to make a loan to fund an economic development project and receive tax credits. A $1 million deal, for example, would enjoy a $390,000 benefit over seven years. “It gives additional incentive to make higher-risk investments in partnership that they cannot otherwise make,” he said.

Supportive financial institutions include the Bank of Astoria, The Bank of the Pacific, Sterling Bank, Wells Fargo Bank, U.S. Bank and Anchor Bank. Berdes said their indications of support strengthened the application to the Treasury Department.