As the federal government continues to finalize the details and protocols of implementing the recently passed Coronavirus Aid Relief and Economic Security (CARES) Act, Bank of America today announced that it will provide up to $250 million in capital to community development financial institutions (CDFIs) by funding loans through the newly established Paycheck Protection Program. In addition, Bank of America will provide up to $10 million in philanthropic grants to help fund the operations of CDFIs.
CDFIs, also known as local loan centers, are small and typically not-for-profit providers of loans and technical assistance with a mission of serving low- and moderate-income communities. The funding and grants announced today will be provided to CDFI loan funds and CDFI- and minority-owned banks.
“Small businesses are the backbone of our communities,” said Anne Finucane, vice chairman of Bank of America. “CDFIs are integral to the development and sustainment of small businesses, health care centers, schools and other community facilities, as well as the financing of affordable housing and economic development projects. CDFIs will be critical in the response to the unprecedented challenges our communities are facing as a result of the coronavirus.”
These commitments, in addition to the ongoing support Bank of America is providing to its 66 million consumer and small business clients, will help expand access to capital and continued ability to handle financial obligations for even more companies and not-for-profits during this humanitarian crisis. To ensure CDFIs can continue to have the capital and ability to support small business and not-for-profits, Bank of America is working with each institution on a case-by-case basis to provide modifications and payment deferrals for those facing liquidity challenges.