CDFI Fund Announces $104.8 Million in Awards for Local Financial Institutions Across Nation Serving Struggling Communities
August 19, 2010
New York, NY - Today, the U.S. Department of the Treasury’s Community Development Financial Institutions (CDFI) Fund announced $104.8 million in awards for 179 local financial institutions serving struggling communities in 44 states and the District of Columbia. These grants represent the largest single round of awards in the CDFI Fund’s history and will help those financial institutions support local entrepreneurs and small businesses, and spur local economic growth and recovery by expanding access to capital and affordable financial services in underserved areas.
“CDFIs play a critical role financing small businesses and providing access to capital where it is needed most,” said Treasurer of the United States Rosie Rios. “The awards we are announcing today will provide critical support to local financial institutions, which are on the front lines creating jobs and economic opportunity in communities across the country.”
Treasurer of the United States Rosie Rios, Director Donna J. Gambrell of the U.S. Department of the Treasury’s Community Development Financial Institutions (CDFI) Fund, Congresswoman Nydia Velázquez, and Congressman José E. Serrano made this announcement at El Maguey Y La Tuna – a restaurant on the Lower East Side of Manhattan. The owner, Maria Cortez, financed the relocation of her restaurant to the Lower East Side in 2002 through a local CDFI – the Lower East Side People's Federal Credit Union – after the original location in Williamsburg, Brooklyn was destroyed in a fire. The Lower East Side Federal Credit Union is one of the awardees announced today and will receive $750,000 to increase their lending capital and depository activities in their local community.
"By making capital available in areas that have traditionally had difficulty obtaining financing, CDFI's like the Lower East Side People's Federal Credit Union help empower our communities and spur local economic growth,” said Congresswoman Velázquez. “The federal assistance being announced today will bring additional resources to the Lower East Side and help create jobs for New York City residents."
“These awards will enable CDFIs to expand their impact and to provide the critically needed loans, capital, and support that have been instrumental in establishing and sustaining successful small businesses such as El Maguey y La Tuna, which represent the achievement of an entrepreneur’s dream made possible by CDFIs,” said Director Gambrell. “The awards announced today will continue to build upon the success CDFIs have had improving access to capital in underserved communities.”
"When I was looking for a loan to help finance my small business, my local CDFI delivered the critical support I needed," said Maria Cortez, owner of El Maguey Y La Tuna. "The Lower East Side People’s Federal Credit Union also provided me the opportunity to develop my skills as an entrepreneur and ultimately to help build my community."
The CDFI Fund received 408 applications from organizations across the nation requesting more than $467 million in funding under the FY 2010 round of the CDFI Program announced today. This included 322 applications requesting more than $458.9 million under the Financial Assistance Program and 86 applications requesting over $8.4 million under the Technical Assistance Program.
Through the CDFI Program, the CDFI Fund invests in and builds the capacity of existing private, for-profit and non-profit community-based lending organizations known as Community Development Financial Institutions (CDFIs) that serve rural and urban low-income people and communities across the nation that lack adequate access to affordable financial products and services. The CDFI Fund receives applications on an annual basis and awards funds through a competitive process. Since its inception, the CDFI Fund has awarded over $926 million through the CDFI Program.
2010 CDFI Program Awards
For more information about these awards, or about the CDFI Fund and its programs, please visit the CDFI Fund's website at:www.cdfifund.gov.