U.S. Treasury Awards more than $1.73 Billion in Response to Economic Impacts Caused by COVID-19 Pandemic | Community Development Financial Institutions Fund
Summary
These funds will strengthen the ability of CDFIs to help low- and moderate-income communities recover from the COVID-19 pandemic and invest in long-term prosperity.Authorized by the Consolidated Appropriations Act, 2021 (Pub. Catalyze growth in the financial and organizational capacity of CDFIs for the purpose of carrying out equitable recovery activities.When we invest in community lenders, we help build a future where all peopleno matter who they are or where they starthave the resources they need not only to succeed but to thrive, said Vice President Kamala Harris. These grantsrepresenting the largest CDFI grant program in historywill 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.These grant funds will be transformative for grantees that are building a more equitable, resilient economy, along with helping sustain our strong economic recovery said Secretary of the Treasury Janet L. Yellen. The more than $1.73 billion in CDFI ERP funding that is being awarded to CDFIs will be utilized to implement initiatives that, among other things, increase availability of financing and capital for small businesses, promote affordable housing, and improve accessibility to loans that help families make ends meetall of which were compromised by the pandemic, and are vital to community resilience, sustainability and economic prosperity.The CDFI ERP grant funds may be used to support lending related to small businesses and microenterprises, community facilities, affordable housing, commercial real estate and intermediary lending to non-profits and CDFIs. Certified CDFIs can be one of a variety of financial institution types, including banks, credit unions, loan funds, or venture capital providers.