U.S. Department of Treasury’s CDFI Fund Announced the Awards with Vice President Harris, Treasury Secretary Janet Yellen, Senator Mark Warren and Representative Waters
The U.S. Department of Treasury has awarded $1.25 billion in COVID-19 relief funds to 863 community development financial institutions (CDFIs) through the departments CDFI Rapid Response Program (CDFI RRP). The grants will be used to provide CDFIs with capital needed to respond to the economic impacts of the COVID-19 pandemic in distressed communities. Cinnaire received a $1.8 million award to support disadvantaged communities that struggle to receive investments from traditional lending sources.
“CDFIs support equitable development in communities the mainstream financial market doesn’t serve. For every $1 of public funding received, CDFIs can leverage up to an additional $8 of private investment, creating transformative change for people and communities that need it most,” said Donsia Strong Hill, Cinnaire Senior Vice President, Foundation and Corporate Development. “We applaud Vice President Harris, Senator Warner, Representative Waters and Secretary Yellen for their leadership and for taking swift action to enable CDFIs to support healthy communities and lift up our economy.”
The CDFI RRP grant funds will be used to support eligible activities such as financial products, financial services, development services, and certain operational activities, and to enable CDFIs to build capital reserves and loan-loss reserves. The CDFI Fund designed the program to disburse the funds rapidly in light of the nationwide economic impacts of the pandemic.
“The pandemic has brought the social and economic disparities that exist for far too many Americans to the forefront of conversations across our nation,” said Jim Peffley, Cinnaire Chief Strategy Officer. “CDFIs fill a critical role in addressing these disparities and serve as a powerful force advancing social and economic justice in communities across the country. These funds will strengthen our work in ensuring all people have equal access to affordable housing, healthcare, education, employment opportunities and more.”
CDFI RRP award recipients are headquartered in 48 states, the District of Columbia, Guam, and Puerto Rico. The award recipients include 58 organizations that committed to direct their awards to investments in Native American, Native Alaskan, and Native Hawaiian communities; they received a total of $54.6 million in awards. In addition, 28 organizations that primarily serve Puerto Rico received $43.7 million in awards, and 90 depository institutions received a total of $133.9 million in awards.
About the CDFI Fund
Since its creation in 1994, the CDFI Fund has awarded more than $3.9 billion to CDFIs, community development organizations, and financial institutions through the Bank Enterprise Award Program, the Capital Magnet Fund, the Community Development Financial Institutions Program, the Financial Education and Counseling Pilot Program, and the Native American CDFI Assistance Program. In addition, the CDFI Fund has allocated $61 billion in tax credit allocation authority to Community Development Entities through the New Markets Tax Credit Program, and closed guaranteed bonds for over $1.7 billion through the CDFI bond Guarantee Program.
For more information, please visit www.cdfifund.gov.