[From Philanthropy News Digest] Citigroup, Inc. has announced that it will distribute $60 million to Community Development Financial Institution (CDFI) loan funds by year's end to boost small business lending in low-income areas, the Associated Press reports.
The bank will award grants to CDFIs in thirty-nine states and the District of Columbia through a $200 million fund it established earlier this year with the Calvert Foundation and the Opportunity Finance Network. Eligible small business owners will be able to use the loans to hire new staff and/or expand their business.
In the past, community banks were the largest provider of credit to small businesses. But since the stock market crash of 2008, lending by community banks has fallen as many banks replenish their reserves in the face of an uncertain economy.
To that end, Citi is working to meet the financial needs of small businesses through the fund. For example, the fund recently made a loan to help a Chicago-based nonprofit open a sixty-seat restaurant that will serve inexpensive meals to low-income families. Citi told the AP that the nonprofit expects to add twelve full-time employees to its payroll as a result of the loan.
“Citigroup Grants $60M for Small Biz Lending.” Associated Press 11/03/10.
A nonprofit 501(c)3 organization, the RCWE’s mission is to connect people with jobs through collaborative workforce development efforts and strong partnerships with economic development, business, education, and government sectors in the Northwest Pennsylvania region.
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