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US Treasury Awards $180.3 Million to Support CDFI Investment in Low-Income and Distressed Communities

Written by The Frontier Post

F.P. Report

Washington: The U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) awarded 265 Community Development Financial Institutions (CDFIs) $180.3 million in Financial Assistance (FA) awards today. The awards, through the fiscal year (FY) 2021 round of the Community Development Financial Institutions Program (CDFI Program) and the Native American CDFI Assistance Program (NACA Program), will enable CDFIs to increase lending and investment activity in low-income and economically distressed communities.

“I am pleased to announce the FY 2021 CDFI Program and NACA Program Financial Assistance award recipients,” said CDFI Fund Director Jodie Harris. “This year’s awards will benefit a wide variety CDFIs dedicated to tackling issues of poverty and economic mobility in communities across the country.”

The financial institutions receiving the FY 2021 CDFI Program and NACA Program Financial Assistance awards this year include 149 loan funds, 67 credit unions, 44 depository institutions and holding companies, and five venture capital funds.

FA awards include the Base Financial Assistance (Base-FA) award and the following awards that are provided as a supplement to the Base-FA award: Healthy Food Financing Initiative-Financial Assistance (HFFI-FA), Persistent Poverty Counties-Financial Assistance (PPC-FA), and Disability Funds-Financial Assistance (DF-FA).

CDFI Program Financial Assistance Awards

The CDFI Program invests in and builds the capacity of CDFIs to serve low-income people and underserved communities lacking adequate access to affordable financial products and services. For the FY 2021 CDFI Program round, the CDFI Fund awarded $119.2 million in Base-FA awards to 248 organizations in 40 states, the District of Columbia, and Puerto Rico. The CDFI Fund also awarded $18.6 million in PPC-FA awards to 125 CDFIs specifically to serve Persistent Poverty Counties nationwide.

In addition, the CDFI Fund awarded $23 million in HFFI-FA awards to 10 CDFIs. The Healthy Food Financing Initiative is a supplemental program designed to encourage investments in businesses that provide healthy food options for communities. The CDFI Fund also awarded $6 million in DF-FA awards to 14 CDFIs; DF-FA is a supplemental program designed to help CDFIs finance projects and services to assist individuals with disabilities.

NACA Program Financial Assistance Awards

The NACA Program facilitates the creation and advancement of Native CDFIs. Organizations funded through the NACA Program serve a wide range of Native American, Alaska Native, and Native Hawaiian communities, and reflect a diversity of institutions in various stages of development, including: organizations in the early planning stages of CDFI formation; tribal entities working to certify an existing lending program; and established Native CDFIs in need of further capacity building assistance.

The CDFI Fund awarded $11.8 million in FY 2021 NACA Program Base-FA awards to 17 organizations in 12 states. 8 Native CDFIs also received $1.65 million in PPC-FA awards.

The CDFI Fund also provides Technical Assistance awards to CDFIs and emerging CDFIs through the CDFI Program and NACA Program. The FY 2021 Technical Assistance Awards were announced on September 16, 2021. View more information about all of the FY 2021 CDFI Program and NACA Program awards below. 

FY 2021 CDFI Program and NACA Program Award Resources

FY 2021 CDFI Program Award Book

FY 2021 NACA Program Award Book

CDFI Program and NACA Program Financial Assistance Application Evaluation Process

CDFI Program and NACA Program Technical Assistance Application Evaluation Process

About the CDFI Fund

Since its creation in 1994, the CDFI Fund has awarded more than $5.2 billion to CDFIs, community development organizations, and financial institutions through: the Bank Enterprise Award Program; the Capital Magnet Fund; the CDFI Rapid Response Program; the Community Development Financial Institutions Program, including the Healthy Food Financing Initiative; the Economic Mobility Corps; the Financial Education and Counseling Pilot Program; the Native American CDFI Assistance Program; and the Small Dollar Loan Program. In addition, the CDFI Fund has allocated $66 billion in tax credit allocation authority to Community Development Entities through the New Markets Tax Credit Program, and closed guaranteed bonds for more than $1.8 billion through the CDFI Bond Guarantee Program.

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The Frontier Post