In the single largest round of awards in the Community Development Financial Institutions (CDFI) Fund's history, Treasury will distribute a total of $142,302,667 to 155 financial institutions serving economically distressed communities across the United States. CDFI Fund Director Donna Gambrell joined Senator Dick Durbin and Representative Danny Davis in Chicago yesterday to make the historic announcement.
They will help specialized community-based financial institutions spur local economic growth and expand access to affordable financial products and services. Chicago’s Fulton-Carrol Center, a small business incubator that houses almost 120 entrepreneurs and served as the backdrop for yesterday's national award announcement, is just one of many examples of how CDFIs can play a critical role in helping small business owners spur job creation and economic growth in economically distressed communities across the country.
As Deputy Secretary of the Treasury Neal Wolin said, “Every community deserves to have access to basic financial products and services, from bank accounts to affordable home and car loans. The CDFI Program provides access to rural and urban communities across the country by investing in local financial institutions that serve these communities.”
In Chicago, the organizations receiving these awards are doing exactly that. Because of these funds, they will be eligible for larger loans from major banks, which they can then use to make below-market loans to non-profit projects like a charter elementary school, affordable rental housing and a savings and loan association that works with local small businesses.