BlueHub has made monumental strides in community development financing, marking its most significant lending year on record, as detailed in news outlet Banker & Tradesman. Under the leadership of Karen Kelleher, the new president of BlueHub Loan Fund, BlueHub has not only faced but thrived amidst the economic challenges that have reshaped the landscape of real estate development in low-income areas. The organization's work spans transformative projects from the revitalization of historic mills in Holyoke and New Bedford to financing Franklin Cummings Tech's new building in Nubian Square.
BlueHub's mission-driven approach, deeply rooted in serving the underserved, has propelled a series of developments that extend beyond the borders of Massachusetts, influencing community projects across 28 states. However, BlueHub's footprint locally is driven by the dedication to fostering growth within its own community. This year alone, BlueHub has successfully orchestrated complex financing packages that other lenders often overlook, bringing to life projects that are critical for community advancement.
Navigating a climate of rising interest rates and an increasingly competitive funding environment, BlueHub's innovative financial solutions, such as early-stage capital lending, have become more crucial than ever. These solutions are designed not just to bridge financial gaps but to catalyze substantial community benefits—from affordable housing to sustainable development.
"Our borrowers don’t always have deep pockets. As rates have come up, it’s very difficult to come to the table. Our cost of capital is going up too, so we have to be creative. Sometimes we take a subordinate lien that acts as a gap filler for developers that are doing really impactful projects," explains Karen Kelleher, President of BlueHub Loan Fund, emphasizing the adaptability and strategic measures employed to continue supporting community advancement amidst financial challenges.