New CDFI Fund program to provide over $1.5 billion in funding.
The Department of the Treasury's Community Development Financial Institutions (CDFI) Fund on Thursday opened its application round for the new Equitable Recovery Program (ERP).
The program will provide about $1.73 billion in awards to CDFIs to respond to the economic impact of the COVID-19 pandemic. Credit unions, banks, loan funds and venture capital funds may all be certified as CDFIs provided they meet the requirements.
CDFI Fund officials said the awards may be used to:
–Expand lending, grant making and investment activities in low- or moderate-income communities and to borrowers, including minorities, that have significant unmet capital or financial services needs and were disproportionately impacted by the COVID-19 pandemic.
–Enable CDFIs to build organizational capacity, hire people and acquire technology and other tools to serve those communities affected by COVID-19.
All applications must be submitted to the CDFI Fund by August 23, 2022.
How to Apply
To be eligible, a CDFI must:
–Have been certified by the CDFI Fund as of the date that the award process is published in the Federal Register.
–Be able to demonstrate that they have served the targeted areas.
–Meet certain financial management criteria.
All application materials may be found on the CDFI ERP page on the CDFI Fund’s website. The CDFI Fund will be holding two webinars to provide guidance and to answer applicant questions. Information about the webinars also is available on the program webpage.
To learn more about the CDFI Fund and how your credit union can access its various awards programs, visit our page on CDFI Certification or schedule a free consultation with our consulting team today!