Isaiah Funds launch in New Orleans

As I reported yesterday, a national inter-faith group is expanding on the critical role that religious institutions have played in the Katrina rebuilding effort by launching the Isaiah Funds, an innovative loan and grant program to jump-start rebuilding in New Orleans.

The New Orleans Times-Picayune reports on the project today:

A diverse group of faith-based organizations has raised $4.5 million to create two disaster relief funds that will help affordable-housing projects close financing gaps, help small businesses get back on their feet and support the development of community centers on the Gulf Coast.

The Isaiah Fund LLC, a project of Catholic, Jewish, Mennonite and Baptist institutions, is believed to be the first national interfaith fund for long-term domestic disaster recovery. The groups, which have been active in volunteer efforts after Hurricane Katrina, say they recognize that some of the hardest rebuilding work still lies ahead, and providing long-term, low-cost, flexible capital is one of the best ways they can continue to help. [...]

The two funds, one for loans and one for grants, will initially focus on low-income communities on the Gulf Coast, but the founders hope that the Isaiah Funds will become a blueprint to create other funds to support recovery from future disasters.

The Isaiah Fund's goal is to grow the program to $10 million for loans and $1 million for grants by the end of 2009 with the help of other foundations and faith-based institutions, some of whom accompanied the organizers on their trip to New Orleans. The offering circular will be sent out to prospective investors next week.

In a region that's still struggling and looking for signs of hope, the Isaiah Funds are a very encouraging effort.