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Real Estate News Releases
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(EMAILWIRE.COM, March 27, 2009 ) Washington, DC - Community Development Financial Institutions (CDFI) Fund Director Donna J. Gambrell today announced that $2,363,917 in Technical Assistance grants are being awarded to 27 organizations working in economically distressed communities across the country. These awards are being made through the fiscal year (FY) 2009 round of the CDFI Program – Technical Assistance Component.
In an effort to increase the access to capital in low-income communities, the CDFI Fund announced the FY 2009 Technical Assistance awards in advance of the FY 2009 Financial Assistance Assistance awards, and five months earlier than the award announcement in FY 2008.
"It is a significant accomplishment for the CDFI Fund to announce these awards as early as we are this year,” said Director Gambrell. “We recognize the economic challenges facing CDFIs, and the growing demand from low-income Americans for the financial services and products they provide. In order to expedite the flow of critically needed resources into low-income communities, the CDFI Fund has implemented new operating procedures that have enabled us to expeditiously administer this vital program."
The CDFI Fund intends to make two additional award announcements related to the FY 2009 round of the CDFI Program – Financial Assistance Component. The first announcement will be made in June 2009, when all $90 million of funding received through the American Recovery and Reinvestment Act of 2009 (the Recovery Act) will be awarded. The second announcement will be made by September 2009, when over $50 million of FY 2009 annual appropriations will be awarded.
The Technical Assistance awards announced today are being made with FY 2009 annual appropriations, not Recovery Act funds.
Key Statistics
- 21 out of 27 were first-time awardees to the CDFI Program;
- 16 states, the District of Columbia, and the territory of Puerto Rico are represented in the award pool;
- 13 awardees primarily serve major urban markets, 7 primarily serve minor urban markets and 7 primarily serve rural areas;
- 19 loan funds, 3 credit unions, 3 depository institutions/holding companies, and 2 venture capital funds were selected.
Background – CDFI Program - Technical Assistance Component
Through the CDFI Program, the CDFI Fund invests in and builds the capacity of private, for-profit and nonprofit 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.
Specifically, through the Technical Assistance Component of the CDFI Program, the CDFI Fund provides grants to start-up and existing CDFIs, helping them build their organizational capacity to serve their target markets. Both certified and non-certified CDFIs are eligible to apply for Technical Assistance grants; non-certified organizations must meet CDFI certification requirements within two years.
Technical Assistance grants can be used for multiple purposes, including purchasing equipment, materials, supplies, and consulting and/or contracting services. They can also be used to pay for certain personnel salaries/benefits and to train staff or board members. Established CDFIs often use Technical Assistance grants to build their capacity to provide new products, serve current markets in new ways, or enhance the efficiency of their operations. Newer CDFIs often use their Technical Assistance grants to undertake market studies, develop underwriting policies, and purchase computer equipment.
For more information on the CDFI Program, please visit www.cdfifund.gov.
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This press release was issued through GroupWeb EmailWire.com, a press release service of GroupWeb Media LLC ( http://www.groupweb.com). For more information on press release distribution, go to http://www.emailwire.com .
U.S. Department of the Treasury
Community Development Financial Inst.
(800) 439-1420
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