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Morgan Stanley, LISC Launch Pilot Small-Business Loan Fund to Fuel Growth, Create Jobs in Low-Income Communities



  Morgan Stanley, LISC Launch Pilot Small-Business Loan Fund to Fuel Growth,
  Create Jobs in Low-Income Communities

Business Wire

NEW YORK -- November 26, 2012

Morgan Stanley (NYSE: MS) and the Local Initiatives Support Corporation (LISC)
together have launched a Small Business Loan Fund to support commercial
expansion and create jobs in communities battling economic decline.

“Small businesses too often lack sufficient capital to build and grow,” said
Audrey Choi, Managing Director and Head of Global Sustainable Finance at
Morgan Stanley. “This fund will provide financing for small businesses seeking
to acquire the resources they need to expand, and therefore contribute to the
economic development of the communities in which they operate.”

Morgan Stanley is providing $10 million in debt financing and equity capital
to help launch the Small Business Loan Fund, while LISC is allocating its
federal New Markets Tax Credits (NMTC) to the fund. NMTC is a tax credit
program administered by the U.S. Department of the Treasury to bring private
investment dollars to low-income neighborhoods.

Over the next year, the fund expects to support businesses within some of the
31 urban areas where LISC is already working to revitalize distressed
neighborhoods, including parts of Chicago, Detroit, Indianapolis, Los Angeles,
Milwaukee, New York City, Phoenix, San Diego and the San Francisco Bay area.
It will also seek to support rural communities where LISC operates. The fund
will make qualifying loans under the Small Business Administration 504
program, which allows businesses to buy, build or expand facilities and
purchase equipment. LISC and Morgan Stanley are partnering with CDC Capital
Markets, a leader in the SBA 504 market, to source and manage loans for the
fund. The fund could be expanded in the future to reach more businesses in
more communities.

“Even the most successful small businesses in many of these neighborhoods have
a tough time accessing the capital they need to grow,” said Kevin Boes,
President of New Markets Support Company (NMSC), a LISC affiliate that manages
New Markets Tax Credit investments. “With this fund, we can offer a loan
product at reasonable rates, so small businesses can maximize their cash flow
and build their business, despite tight credit markets.”

Ken Rosenthal, Senior Advisor of lending, education and training for CDC
Capital Markets, said, “With this type of financing, a business can purchase
its own building, secure its financial future and create new jobs to help the
surrounding community and economy. We are excited to partner with Morgan
Stanley and LISC and to be in a position to offer the small-business community
access to capital at favorable rates and terms.”

For more information about fund investments or to make an inquiry about a
particular need, please contact Ken Rosenthal at CDC Capital Markets,
858-967-7817 or krosenthal@cdcloans.com.

About Morgan Stanley
Morgan Stanley is a leading global financial services firm providing a wide
range of investment banking, securities, investment management services and
wealth management services. The Firm's employees serve clients worldwide
including corporations, governments, institutions and individuals from more
than 1,200 offices in 43 countries. Since 2006, Morgan Stanley has executed
more than $5 billion in investments to strengthen underserved communities. For
more information about Morgan Stanley, please visit www.morganstanley.com.

About LISC
LISC combines corporate, government and philanthropic resources to help
nonprofit community development corporations revitalize distressed
neighborhoods. Since 1980, LISC has raised $12 billion to build or rehab
289,000 affordable homes and develop 46 million square feet of retail,
community and educational space nationwide. Toward that end, the Treasury
Department has awarded LISC $778 million in New Markets Tax Credit investment
authority, the largest allocation in the country. All told, LISC support has
leveraged nearly $40 billion in total development activity. For more
information, visit www.lisc.org.

About CDC
CDC Capital Markets is a division of CDC Small Business Finance, which leads
the nation in providing SBA-504 loans to small businesses as well as access to
other capital through distinctive, innovative financing products and services.
In addition, CDC reinvests in communities, particularly underserved markets
and populations. In all, CDC Small Business Finance has provided financing to
more than 3,000 small businesses, resulting in the creation and retention of
over 100,000 jobs. For more, visit www.cdccapitalmarkets.com.

Contact:

Media:
LISC New Markets Support Company
Kevin Boes, 312-697-6467
kboes@nefinc.org
or
Morgan Stanley
Sandra Noonan, 212-761-2446
sandra.noonan@morganstanley.com
or
CDC Capital Markets
Ken Rosenthal, 858-967-7817
krosenthal@cdcloans.com
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