CDFI Fund Awards $25 Million to Banks that Increased Investments in Severely Distressed Communities
Over Half Billion Dollars has now been awarded through the Bank Enterprise Awards Program
September 17, 2019
Washington, DC – Today, the U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) announced over $25.2 million in awards to 113 banks, through the fiscal year (FY) 2019 round of the Bank Enterprise Award Program (BEA Program), for increasing investments to communities across the nation experiencing severe economic distress. The CDFI Fund received 117 applications requesting over $150 million in FY 2019 BEA Program round funding.
The BEA Program provides monetary awards to FDIC-insured depository institutions that have demonstrated increased investments in Community Development Financial Institutions (CDFIs) or in their own lending, investing or service activities in the most economically distressed communities. Awards are then reinvested in these distressed communities, which helps accelerate the growth of businesses, creation of jobs, development of affordable housing, and availability of financial services.
“Established as part of the CDFI Fund 25 years ago, the BEA Program has successfully incentivized increased bank investment and lending activity in our nation’s most economically distressed communities,” said CDFI Fund Director Jodie Harris. “With today’s announcement, more than $520 million has now been awarded to banks that have elevated their investments, lending and service activities in the nation’s most distressed communities—those where at least 30 percent live at or below the national poverty level and possess an unemployment rate at least 1.5 times the national average—as well as to certified CDFIs.”
Collectively, during the one-year assessment period, the 113 depository institutions receiving an FY 2019 BEA Program award increased:
- loans and investments in distressed communities by nearly $362.2 million;
- loans, deposits, and technical assistance to CDFIs by $26.5 million; and
- the provision of financial services in distressed communities by $36.1 million.
In total, the $25.2 million awarded under the FY 2019 round of the BEA Program will be reinvested into these economically distressed communities, as well as CDFIs, thereby generating further economic opportunity.
Of the 113 depository institutions awarded funding, 81 have committed to deploying approximately $3.7 million, or 14.8% of total FY 2019 appropriated funds, in Persistent Poverty Counties which exceeds the Congressional mandate of 10%.