October 01, 2013
CDFI Fund Awards over $172 Million to Community Development Financial Institutions
by Robert Kropp
191 community development financial institutions will use awards from US Treasury's Community
Development Financial Institutions Fund to provide lending and investments in low-income and
economically distressed communities.
The US Department of Treasury’s Community Development Financial Institutions Fund (CDFI
Fund) announced last week that its annual awards to community development financial
institutions (CDFIs) totaled more than $172 million in 2013. The 191 recipients is the largest
number ever awarded in a single year by the program. Since 1994, the CDFI Fund has awarded over
$1.8 billion to CDFIs, community development organizations, and financial institutions.
One hundred forty-eight credit unions,
depository institutions, loan funds, and venture capital funds received received more than $150
million in Financial Assistance and Technical Assistance awards. Another ten CDFIs received $22.3
million in funding under the Healthy Food Financing Initiative, which seeks to expand access to
healthy foods in low-income communities.
“The fiscal year 2013 round of the CDFI Program provides more awards than any other round in
the CDFI Fund’s history,” said CDFI Fund Director Donna Gambrell. “By expanding the reach and
impact of this program to more organizations, the CDFI Fund is supporting more economic development
efforts than ever before to bring new life to struggling communities.”
“By providing affordable credit and capital,
CDFIs play a unique role in creating jobs, generating economic growth and revitalizing
neighborhoods in America’s low-income and economically-distressed communities,” said Treasury
Deputy Assistant Secretary Don Graves. “Building on nearly two decades of Treasury support for
CDFIs, the awards announced today will allow these financial institutions to better meet the
investment and lending needs of the communities they serve.”
In addition, the Treasury
Department announced today that it has
approved $325 million in bonds that will be guaranteed for community and economic development
financing through the 2013 round of the CDFI Bond Guarantee Program.
The four recipients
of the first round of financing are Clearinghouse CDFI, Enterprise Community Loan Fund, The
Community Development Trust, and Local Initiatives Support Corporation.
the Small Business Jobs Act of 2010, the CDFI Bond Guarantee Program provides eligible CDFIs with
access to long-term capital by providing guarantees of bonds.
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