Clearinghouse CDFI Receives Over $ 1.8 Million In COVID-19 Relief Fund
“We are grateful to the US Treasury, the CDFI Fund and our partners at the Opportunity Finance Network for this allocation and for our long history of working together to bring the necessary capital and economic development to underserved communities in the United States.”
LAKE FOREST, Calif. (PRWEB)
June 24, 2021
Clearinghouse Community Development Financial Institution (Clearinghouse CDFI) announced today that it has received $ 1,836,265 million from the US Treasury Community Development Financial Institution Fund (CDFI Fund) – part of a larger amount of $ 1.25 billion dollars awarded by the US Treasury Department in COVID-19 relief funds to 863 CDFI, the largest single funding round in the agency’s history.
The awards were announced by Vice President Kamala Harris at the White House along with Treasury Secretary Janet L. Yellen. The grants will be made through the Treasury’s CDFI Rapid Response Program (CDFI RRP) and will provide the necessary capital for CDFIs to respond to the economic challenges created by the COVID-19 pandemic, particularly in underserved communities.
âThe COVID-19 pandemic has caused unprecedented and uneven pain to our most vulnerable communities,â said Douglas J. Bystry, President and CEO of Clearinghouse CDFI. “We are grateful to the United States Treasury, the CDFI Fund and our partners at the Opportunity Finance Network for this allocation and for our long history of working together to bring the necessary capital and economic development to underserved communities in the United States.”
CDFI RRP grant funds will be used to support eligible activities such as financial products, financial services, development services, and to enable CDFI to build up capital reserves and loan loss reserves. The CDFI Fund designed the program to disburse funds quickly in light of the national economic impacts of the COVID-19 pandemic. The RRP CDFI was authorized by the 2021 consolidated finance law (Pub. L. 116-260).
âBy serving places that the financial sector has not historically served well, CDFIs enhance our economy as a whole. We know that for every dollar injected into a CDFI, it catalyzes an additional eight dollars of private sector investment, which means that today’s announcement could result in an additional investment of $ 10 billion, âsaid the secretary Yellen.
Clearinghouse CDFI has funded $ 1.98 billion in total loans for more than 2,250 community projects over the past 24 years. These projects have created or retained more than 23,000 jobs and benefited more than 2.8 million people. Clearinghouse CDFI has also funded more than 460 PPP loans that have saved 1,600 jobs in 28 states. 63% of Clearinghouse CDFI’s PPP borrowers are minority or women-owned businesses.
In 2020, Clearinghouse CDFI funded 284 projects that created or retained 3,800 jobs; 51% were in areas with high unemployment rates. CDFI loans from the clearing house created 1,137 homes in 2020, 57% of which were classified as affordable. Clearinghouse CDFI has also provided $ 49 million in funding to organizations owned or controlled by minorities / women.
âThese awards provide CDFIs with an unprecedented level of flexible capital to help distressed and underserved communities across the country take meaningful action to recover from the debilitating economic impacts of the COVID-19 pandemic,â the report said. Director of the CDFI Fund, Jodie Harris. “The CDFI RRP Awards will allow CDFIs to help businesses keep their doors open, help families make ends meet, and help maintain important community facilities during this difficult time.”
About the CDFI Fund:
Since its inception 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, Capital Magnet Fund, Community Development Financial Institutions Program, of 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 credits to community development entities through the New Markets Tax Credit Program and has secured bonds for more than $ 1.7 billion. dollars through the CDFI bond guarantee program.
For more information on the CDFI Fund and its programs, please visit http://www.cdfifund.gov.
About Clearinghouse Community Development Financial Institution (Clearinghouse CDFI):
Clearinghouse CDFI responds to unmet credit needs in the United States and the Indian country through direct loans, equity investments and financial assistance. We have helped bridge the gap between conventional lending standards and the needs of low-income, struggling and black communities. CDFI Clearinghouse is also a B Corp-a certification received from the nonprofit B Lab. B Corps are companies that uphold rigorous standards of social and environmental performance, transparency and accountability, and use business as a force for good. More information is available at http://www.ccdfi.com.
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