The U.S. Department of the Treasury Department’s Community Development Financial Institutions (CDFI Fund) has earmarked $194.1 million in financial assistance awards to 252 Community Development Financial Institutions (CDFIs), the agency announced Monday.
The funding allocation through the Community Development Financial Institutions (CDFI Program) and Native American CDFI Assistance (NACA) Program enables CDFIs to increase capacity and expand lending and investment activity in underserved communities.
“I am pleased to announce the fiscal year 2022 CDFI Program, and NACA Program Financial Assistance Award Recipients,” CDFI Fund Director Jodie Harris said. “Financial Assistance Awards provide CDFIs with capital critical for establishing new businesses, creating jobs, financing affordable housing and increasing homeownership, and providing financial services in low-income and distressed communities nationwide.”
The recipients include 137 loan funds, 73 credit unions, 40 depository institutions and holding companies, and two venture capital funds, according to the Treasury Department. Award recipients also included 23 CDFIs designated as Minority Depository Institutions by the Federal Deposit Insurance Corporation (FDIC) and National Credit Union Administration.
“The question of who can access credit and capital – and who can’t – is at the root of many long-term structural problems in our economy,” Assistant Secretary for Financial Institutions Graham Steele said. “By channeling more capital into CDFIs, we are reaching places and communities that the financial sector historically hasn’t served well – and by doing so, we are helping to create an economy that works for everyone.”
According to the Treasury Department, the CDFI Fund has awarded nearly $5.7 billion to CDFIs since its creation in 1994, aiding community development organizations and financial institutions.