U.S. Treasury awards $1.25 billion to support economic relief in communities affected by COVID-19. In that regard, NHSSF CDFI will receive a $490K Rapid Response Program allocation to respond to economic challenges created by the COVID-19 pandemic, particularly in underserved African-American communities across South Florida. The announcement was made today by Vice President Harris alongside Treasury Secretary Janet Yellen, U.S. Senator Mark Warner, and U.S Representative Maxine Waters.
The U.S. Department of the Treasury today awarded $1.25 billion in COVID-19 relief funds to 863 community development financial institutions (CDFIs). The awards were announced today by Vice President Kamala Harris at the White House with Treasury Secretary Janet L. Yellen. The grants will be made through Treasury’s CDFI Rapid Response Program (CDFI RRP) and will provide necessary capital for CDFIs to respond to economic challenges created by the COVID-19 pandemic, particularly in underserved communities.
“In serving places that the financial sector historically hasn’t served well, CDFIs lift our whole economy up. We know that for every dollar injected into a CDFI, it catalyzes eight more dollars in private-sector investment, meaning that today’s announcement might lead to an additional $10 billion in investment,” said Secretary Janet Yellen. “The President and the Vice President ran on a very ambitious agenda – ‘Build Back Better,’ unwinding systemic racism, creating an economy that works for everyone. I believe this is what that looks like in practice. By channeling more capital into CDFIs, we are translating those ideals into reality.”
The CDFI RRP grant funds will be used to support eligible activities such as financial products, financial services, development services, and certain operational activities, and to enable CDFIs to build capital reserves and loan-loss reserves. The CDFI Fund designed the program to disburse the funds rapidly in light of the nationwide economic impacts of the COVID-19 pandemic. The CDFI RRP was authorized by the Consolidated Appropriations Act, 2021 (Pub. L. 116-260).
“These awards provide CDFIs with an unprecedented level of flexible capital to help distressed and underserved communities across the country take meaningful steps towards recovering from the debilitating economic impacts of the COVID-19 pandemic,” said CDFI Fund Director Jodie Harris. “CDFI RRP awards will enable CDFIs to help businesses keep their doors open, help families make ends meet, and help maintain important community facilities during this difficult time.”
CDFI RRP award recipients are headquartered in 48 states, the District of Columbia, Guam, and Puerto Rico. The award recipients include 58 organizations that committed to direct their awards to investments in Native American, Native Alaskan, and Native Hawaiian communities; they received a total of $54.6 million in awards.
NHSSF CDFI awarded with $490K RRP allocation
“As a Community Development Financial Institution (CDFI), we specialize in providing financial products and services to people and communities underserved by traditional financial institutions, as well as traditional mortgage products. We are thrilled to be part of a reinvigorated movement to bring about greater economic equity across all social groups and with the deployment of these funds, be a catalyst for recovery and economic growth in the communities we serve,” stated Kimberly T. Henderson, President and CEO of Neighborhood Housing Services of South Florida.
For more than 40 years, NHSSF CDFI loan fund has implemented progressive community development strategies resulting in revitalized communities and financially empowered families. As a CDFI we have been able to build a nonextractive and trust-based relationship with the communities we serve.
NHSSF seeks to leverage our CDFI RRP allocation as a powerful tool to assist government in solving complex problems centered on connecting low-wealth families to capital, and thereby financial opportunity. Through the innovative use of our CDFI, we envision a South Florida in which low-wealth communities have access to the capital they need..
- To build affordable housing,
- To revitalize neighborhoods,
- To assist small businesses that advance prosperity for all,
..while financial institutions and social impact investors have a partner meeting the needs of low-wealth communities.
You can view the announcement here:
A CDFI can be a bank, credit union, loan fund, or venture capital fund. The CDFI RRP award recipients include:
- Loan funds: 463 organizations receiving $571.3 million in awards
- Credit unions: 244 organizations receiving $401.8 million in awards
- Banking entities: 149 organizations receiving $267.1 million in awards
- Venture capital funds: seven organizations receiving $9.4 million in awards
About the CDFI Fund
Since its creation 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, the Capital Magnet Fund, the Community Development Financial Institutions Program, 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 credit allocation authority to Community Development Entities through the New Markets Tax Credit Program, and closed guaranteed bonds for over $1.7 billion through the CDFI Bond Guarantee Program.
NHSSF is a certified CDFI and an accredited community development nonprofit serving South Florida residents for over 40 years. We are committed to advance prosperity for all South Floridians through Lending, Real Estate Development, Home Buyer Education & Counseling, and Community Transformation. NHSSF is also a chartered member of the NeighborWorks® America. In this capacity, we are part of a nationwide network of over 240 chartered community development organizations and one of the twenty that serve Florida residents.
You can read the official press release from the U.S. Department of Treasury here.
For more information about the CDFI Fund and its programs, please visit www.cdfifund.go