Community development financial institutions will get nearly $1.25 billion in federal COVID relief funding to help small businesses, Vice President Kamala Harris and Treasury Secretary Janet Yellen announced Tuesday.
The United States Treasury Department has awarded $1.25 billion to 863 community development financial institutions (CDFIs), of which 45 are members of the African American Alliance of CDFI CEOs (Alliance). Through the Treasury’s Rapid Recovery Program, CDFIs will be able to help their customers and communities cope with the economic hardship brought on by the Coronavirus pandemic.
The allocation is from the new Rapid Recovery Program, passed as part of the December 2020 COVID relief legislation and based on a bill by then-Senator Harris along with Senators Mark Warner of Virginia, Cory Booker of New Jersey, and Senate Majority Leader Chuck Schumer, as well as Representative Maxine Waters of California.
“In serving places that the financial sector historically hasn’t served well, CDFIs lift our whole economy. We know that for every dollar injected into a CDFI, it catalyzes eight more dollars in private-sector investment, meaning that today’s announcement might lead to an additional $10 billion in investment,” said Treasury Secretary Janet Yellen. “The President and the Vice President ran on a very ambitious agenda – ‘Build Back Better,’ unwinding systemic racism, creating an economy that works for everyone. I believe this is what that looks like in practice. By channeling more capital into CDFIs, we are translating those ideas into reality.”
In addition to supporting eligible CDFI activities such as developing financial products, financial services, loan loss reserves, and development services, grant funds will also enable CDFIs to build capital reserves.
“In a time of economic revitalization for communities across the country, this allocation comes at a pivotal moment for our members,” said Lenwood V. Long, Sr. President/CEO of the African American Alliance of CDFI CEOs. “Alliance member organizations, as they have in the past, will use this funding as a way to continue investing in projects that provide jobs, housing, and critical supportive services to those most in need, furthering our mission to address disparities in the communities we serve.”
Alliance member organization awardees include:
- Access Plus Capital
- African Development Center of Minnesota
- African Economic Development Solutions
- Albany Community Together, Inc.
- Ampac Tri-State CDC
- Appalachian Community Capital
- Baltimore Community Lending, Inc.
- Beaufort County Black Chamber of Commerce
- Beech Companies
- Black Business Investment Fund Florida
- Bronze Valley Corp
- Capital Impact Partners
- Carolina Small Business Development Fund
- Central County Community Development Corporation
- Chicago Community Loan Fund
- Chicago Neighborhood Initiatives Microfinance Group
- Enterprise Community Loan Fund, Inc.
- FSC First – Prince George County Community
- Greater Cincinnati Microenterprise Initiative
- Greater Jamaica Development Corporation
- Harlem Entrepreneurial Fund
- Hope Enterprise Corporation
- Houston Business Development
- Local Government Federal Credit Union
- Legacy Redevelopment Corporation
- Mill Cities Community Investments
- Neighborhood Development Center
- Neighborhood Housing Services of South Florida
- NewCorp Inc
- Northwest Side Community Development Corporation
- Opa Locka CDC-Community Fund
- People Trust Community Loan Fund
- Piedmont Business Capital
- ProsperUs Detroit
- River City Capital
- Southern Bancorp Community Partners
- Texas Mezzanine Fund
- The Enterprise Center
- The Housing Fund
- True Access Capital
- TruFund Financial Services, Inc.
- Upper Manhattan Empowerment Zone Development Corporation
- Village Capital Corporation
- Washington Area Community Investment Fund