July 30, 1999

State Farm Partners With The National Council of La Raza

Washington — State Farm Insurance Companies, the nation's largest property and casualty insurer, will contribute and invest $8 million to support the National Council of La Raza's (NCLR) Hope Fund.

The fund will assist Hispanic families both socially and economically. It will increase access to capital, focus attention on assisting low-income Hispanic communities, and help build Hispanic-controlled financial institutions.

To drive this initiative, the NCLR created the Hope Fund, the only national Hispanic Community Development Financial Institutional (CDFI) certified by the Department of Treasury, to bring about the direct participation of Hispanics in the economic development of their communities.

"State Farm's goal is to ensure that everyone gets a chance to realize his or her dream of owning a home," said Dave Gonzales, State Farm vice president of operations. "By partnering with NCLR in this new venture, we show our support of the Hispanic community for wanting to bring positive changes through work force development, education and home ownership."

In the past, the NCLR has provided technical assistance and grants to its affiliates for field programs such as housing, health, education, business capitalization, and work force development. The NCLR will continue to provide support as before, but his new partnership will ensure greater community impact through the creation of wealth and assets in neighborhoods across the country.

State Farm's $8 million contribution/investment includes a $1 million contribution and a $7 million loan investment targeted toward providing creative, flexible, and competitive financing for home ownership and neighborhood revitalization efforts in low- and moderate-income Hispanic communities.

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