USBCDC finances $50 million in capital to CDFIs amid pandemic

May 08, 2020

The seven CDFIs receiving capital are across the country.

U.S. Bancorp Community Development Corporation (USBCDC), the tax credit and community investment subsidiary of U.S. Bank, has facilitated $50 million in capital to seven community development financial institution (CDFI) customers, helping them provide loans through the Small Business Administration (SBA) Paycheck Protection Program.

Each of the CDFIs are receiving $5-$10 million in low interest rate loans to support their ability to fund small businesses impacted by the COVID-19 pandemic. CDFIs play a critical role in bringing investment and resources to underserved communities, and those who may not be eligible for traditional small business financing, with a focus on women and minority-owned businesses and low-to-moderate income communities. 

“There is great need across the country and small businesses are among the hardest hit by this global pandemic,” said Zack Boyers, chief executive officer for USBCDC. “In addition to the federal funding programs, we’ve provided financing through our community development corporation to support these CDFIs. CDFIs are committed to supporting entrepreneurs and small businesses in low-income and underserved communities and that means collectively, these CDFIs will help keep paychecks flowing to employees who may need it the most.”

The CDFIs include:

  • Black Business Investment Fund (BBIF) Florida – Supporting black, minority and underserved small businesses in Florida through access to capital and management consulting.
  • Community First Fund – Provides small business loans and assistance to entrepreneurs across eastern Pennsylvania, focused on those owned by people of color or women-owned businesses.
  • Community Reinvestment Fund, USA – Works to address social and economic inequity through financial solutions that help empower people, build sustainable communities and inspire systemic change. 
  • Metropolitan Economic Development Association (Meda) – Provides business consulting, access to capital and market opportunities for minority entrepreneurs in Minneapolis and around Minnesota.
  • MoFi – Provides loans to individuals, businesses and communities across Wyoming, Montana, Idaho, Eastern Washington and Eastern Oregon.
  • NDC Grow America Fund (GAF) – Provides flexible and patient loans to established small businesses, manufacturers and distributors, primarily in low-income communities and/or minority-owned. 
  • Prestamos CDFI – Helps businesses in emerging communities with financing, tools and resources to grow and succeed; is part of Chicanos Por La Causa, Inc., one of the leading Hispanic nonprofits in the country.

U.S. Bank has been a long-time partner working with CDFIs to provide funding to entrepreneurs in underserved communities. By the end of 2019, U.S. Bank helped ensure that more than $400 million in capital was available for CDFIs and their customers. 

“U.S. Bank’s support of MoFi, and more importantly, of the people and communities MoFi serves across the Northern Rockies, is helping hundreds and hundreds of businesses weather the COVID-19 crisis,” said Dave Glaser, MoFi president. “U.S. Bank’s partnership with MoFi is ensuring that small businesses are getting a lifeline when they need it most.” MoFi is also one of 30 nonprofits that recently received a U.S. Bank Market Impact Fund grant. 

“We are grateful to U.S. Bank for their constant support over the years,” said Alfredo Martel, president and CEO of Meda. “This capital injection into our CDFI loan fund is a reflection of their decisive and steadfast partnership in our mission of helping minority entrepreneurs succeed. It will allow us to directly assist many minority-owned businesses during this unprecedented time of economic uncertainty.” 

“As a result of U.S. Bank’s investment of capital into BBIF, we have been able to invest into hundreds of Florida’s black, minority, and other underserved businesses,” said Inez Long, BBIF president and CEO. 

U.S. Bank also recently announced a shift in its approach to community giving this year in response to the COVID-19 pandemic. Last month, the company announced a $30 million philanthropic commitment focused on short-term relief and long-term recovery. U. S. Bank donated $4 million to three national nonprofits – United Way, LISC and Operation HOPE, transformed and expedited its annual $1 million Market Impact Fund, and announced that its remaining $25 million in grants planned for this year could be used by nonprofits for general operating expenses rather than for specific programming. U.S. Bank is also doubling employee matching gift contributions to support organizations working toward long-term recovery and has established a virtual volunteer network so employees can assist nonprofits during this time of need. 

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