Funds for Businesses in Economically Distressed Communities

In a "fact-finding" trip to Washington, my husband and I met a government representative who almost convinced us to set up a credit union. (Whew! that was close.) That was years ago, but now I am considering how it could help the community if a few faith-based organizations did just that. If not a credit union there is another possibility called a Community Development Entity (CDE). A certified CDE is a domestic corporation or partnership that is an intermediary vehicle for the provision of loans, investments or financial counseling in “Low-Income Communities” (LICs) under the New Markets Tax Credit Program.

Another goal to reach for is becoming a certified Community Development Financial Institution (CDFI), which "is a specialized financial institution that works in market niches that are underserved by traditional financial institutions. Some of the certified entities may be names that you know- well. (Click here to view a list by state.)

Community Banks are Awarded Funds to Invest in Economically Distressed Communities

Did you know that Funds for Small businesses with difficulty obtaining traditional loans are available? Did you know that there was a recent announcement about funds being released to banks who expressed a purpose in serving economically distressed communities? Have you heard about these resources at all in the past 15 years? Well for over 15 years these resources have been in existence. Since its creation in 1994, the Community Development Financial Institutions (CDFI) Fund has awarded almost $1.3 billion to CDFIs, community development organizations, and financial institutions through the CDFI Program, the Bank Enterprise Awards program, and the Native American CDFI Assistance program. In addition, the CDFI Fund has allocated $29.5 billion in tax credit authority to community development entities through the New Markets Tax Credit Program.

I published an article in my blog about the CDFI some years ago and believe that it is time to revisit this vital information. You may be surprised to learn about past and present recipients of these funds. The list raised my eyebrows just a bit. I thought, so that's how they were able to buy up a small portion of the city. You may find it interesting to read about who has been awarded funds as well as the promises they made for receiving the funds. (See Award lists and Awardee Profiles)

The important point to note is that they were funded under the promise of reaching out to distressed communities and offering financial assistance to improve the economic condition. One of the mandates is that they provide assistance "in census tracts where at least 30 percent of the population lives at or below the national poverty level and where the unemployment rate is 1.5 times above the national average."

Perhaps you know of some faith-based organizations that want to step up to the plate and make a difference to the communities in need by making sure that they have access to (or at least know about) these funds. I plan to spread the word to as many people as possible as well as learn how to put some oil in my lamp so that I can be on the other side of the door. (This is code especially for those who can understand.) Also, I believe that sharing this information will help locate potential partners, which is essential because this is one of those efforts that will work best with collaborative resources.
Learn more about the Bank Enterprise Award Program...