Today, the U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) announced more than $18.6 million in awards to 102 FDIC-insured financial institutions serving economically distressed communities across the nation. These funds, awarded under the fiscal year (FY) 2016 round of the Bank Enterprise Award Program (BEA Program), will support community and economic development activities in census tract areas where at least 30 percent of the population lives at or below the national poverty level and where the unemployment rate is at least 1.5 times the national average. The award recipients were selected after a comprehensive review of 116 applications requesting $145.6 million in funding.
“I applaud the banks and thrifts being awarded today for increasing their lending, investing and vital financial services in low-income communities across the nation,” said CDFI Fund Director Annie Donovan. “Through both direct investment and by supporting Community Development Financial Institution partners, these institutions are making a real difference in highly distressed communities across the nation.”
Today’s awards will build on efforts to increase investments in underserved communities. Collectively, during the one-year assessment period, these 102 depository institutions increased their loans and investments in distressed communities by $285.5 million; increased their loans, deposits, and technical assistance to Community Development Financial Institutions (CDFIs) by $41 million; increased their equity and equity-like loans and grants to CDFIs by $8.8 million; and increased the provision of financial services in highly distressed communities by $3.5 million.
The more than $18.6 million awarded under the FY 2016 round of the BEA Program today will be re-invested into distressed communities and CDFIs by BEA Program award recipients.
About the BEA Program
The Bank Enterprise Award Program (BEA Program) rewards FDIC-insured depository institutions for making investments in certified CDFIs as well as in the most distressed communities in the country. In order to receive an award, these banks and thrifts must demonstrate an increase in their investments with at least 30% of their residents having incomes less than the national poverty level and 1.5 times the unemployment rate. The BEA awards help offset some of the risk associated with investing in these distressed communities and provide an incentive to invest. The greater the loan increase, the greater the award. Since its inception in 1994, the BEA Program has awarded grants totaling over $447 million.
About the CDFI Fund
Since its creation in 1994, the CDFI Fund has awarded more than $2.3 billion to CDFIs, community development organizations, and financial institutions through the Community Development Financial Institutions Program, the Native American CDFI Assistance Program, and the BEA Program. In addition, the CDFI Fund has allocated $50.5 billion in tax credit allocation authority to Community Development Entities through the New Markets Tax Credit Program, closed guaranteed bonds in the amount of $1.1 billion through the CDFI Bond Guarantee Program, and awarded more than $171 million through the Capital Magnet Fund.