MINNEAPOLIS–(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.