A pair of New York entities said they have earmarked $25 million in support of providing banking services within underserved and low-income communities statewide.
Officials said the New York State Department of Financial Services and Empire State Development have issued the first awards to aid the initiative via the New York State Community Development Financial Institution (CDFI) Fund.
Authorities noted the CDFI seeks to increase small business and non-profit organization access to capital and technical assistance.
“The pandemic demonstrated that financial health and resilience must be built from the ground up and New York’s CDFIs continue to be an essential building block to ensuring our recovery benefits those most affected,” Acting Superintendent of Financial Services Adrienne A. Harris said. “The distribution of these grants is a testament to what can be achieved when government works across agencies and community banks to benefit the people they serve.”
CDFIs and CDFI Credit Unions are defined as private financial institutions delivering affordable lending options to disadvantaged people and communities, officials said.
“Creating and expanding banking services in underserved communities across the state will increase economic opportunities for all,” Empire State Development Chief Operating Officer and Executive Deputy Commissioner Kevin Younis said.
“New York State’s CDFIs play an important role supporting small and micro-businesses, many that are minority and women owned, with financial resources and skills not always available to them from traditional or big banks. These grants will expand their services to help small businesses continue to recover, grow and realize a brighter future.”