The U.S. Department of the Treasury’s Community Development Financial Institutions Fund has awarded over $1.73 billion in grants to 603 community development financial institutions (CDFIs) across the country.
The funding will strengthen the ability of these CDFIs to help low- and moderate-income communities recover from the COVID-19 pandemic.
“When we invest in community lenders, we help build a future where all people—no matter who they are or where they start—have the resources they need not only to succeed but to thrive,” Vice President Kamala Harris said. “These grants—representing the largest CDFI grant program in history – will enable hundreds of community lenders to invest in small businesses and entrepreneurs, and also provide home loans for families, financial services for local nonprofits, and capital for community organizations.”
The funding comes through the CDFI’s Equitable Recovery Program, designed to provide funding to CDFIs to expand lending, grant-making, and investment activities in low- or moderate-income communities. The institutions that received grants through CDFI ERP include banks, holding companies, credit unions, non-depository loan funds, and venture funds designated as CDFIs by the Treasury Department.
“These grant funds will be transformative for grantees that are building a more equitable, resilient economy, along with helping sustain our strong economic recovery,” Secretary of the Treasury Janet Yellen said. “These critical resources will allow mission-driven lenders to expand access to capital in financially underserved communities, which will help increase contributions to long-term economic growth.”
Of the grants, 222 recipients committed to serving low- or moderate-income majority minority census tracts received $705.6 million; 179 Recipients committed to serving minority individuals or minority-owned or controlled businesses received $420.6 million; 134 recipients committed to serving persistent poverty counties, native areas and/or U.S. Territories received $441.5 million; and 40 recipients committed to serving small businesses and farms received $99.7 million.
The CDFI ERP grant funds may be used to support lending to small businesses and microenterprises, community facilities, affordable housing, commercial real estate, and intermediary lending to nonprofits and CDFIs.