U.S. Bancorp Community Development Corp. Finances $50 Million in Capital to Community Development Financial Institutions (CDF...
May 07 2020 - 12:10PM
Business Wire
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.
In addition to these investments, U.S. Bank has responded to
COVID-19 by instituting a premium pay program for front-line
employees, modifying personal and small business products for
customers and making it easier for customers to bank digitally from
home among other changes. Additional information about its actions
is available at usbank.com/covid-19 and usbank.com/newsroom.
About U.S. Bank
U.S. Bancorp, with more than 70,000 employees and $543 billion
in assets as of March 31, 2020, is the parent company of U.S. Bank
National Association, the fifth-largest commercial bank in the
United States. The Minneapolis-based bank blends its relationship
teams, branches and ATM network with mobile and online tools that
allow customers to bank how, when and where they prefer. U.S. Bank
is committed to serving its millions of retail, business, wealth
management, payment, commercial and corporate, and investment
services customers across the country and around the world as a
trusted financial partner, a commitment recognized by the
Ethisphere Institute naming the bank one of the 2020 World’s Most
Ethical Companies. Visit U.S. Bank at www.usbank.com or follow on
social media to stay up to date with company news.
About U.S. Bancorp Community Development Corporation:
With $35.5 billion in managed assets as of March 31, 2020, U.S.
Bancorp Community Development Corporation, a subsidiary of U.S.
Bank, provides innovative financing solutions for community
development projects across the country using state and federally
sponsored tax credit programs. USBCDC's commitments provide capital
investment to areas that need it the most and contribute to the
creation of new jobs, the rehabilitation of historic buildings, the
construction of needed affordable and market-rate homes, the
development of renewable energy facilities, and the generation of
commercial economic activity in underserved communities. Visit
USBCDC on the web at www.usbank.com/cdc.
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version on businesswire.com: https://www.businesswire.com/news/home/20200507005780/en/
Cassie Wagner, U.S. Bank Cassie.wagner@usbank.com
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