Several smaller, underserved community financial institutions in South Dakota received funding from the Treasury Department as part of a federal government award project designed to help low- and moderate-income communities invest in long-term prosperity.
South Dakota recipients included institutions in Renner, Wagner, Eagle Butte, Kyle, Pine Ridge and Agency Village.
Vice President Kamala Harris and Deputy Secretary of the Treasury Wally Adeyemo announced that the U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) awarded grants to 603 Community Development Financial Institutions (CDFIs) across the country through the CDFI Equitable Recovery Program (ERP). The funds seek to strengthen the ability of CDFIs to help low- and moderate-income communities recover from the COVID-19 pandemic and invest in long-term prosperity.
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Awards were given to mission-driven community development financial institutions that specialize in delivering responsible capital, credit and financial services to underserved communities, according to the U.S. Treasury Department.
“These grant funds will be transformative for grantees that are building a more equitable, resilient economy, along with helping sustain our strong economic recovery,” said Treasury Secretary Janet Yellen. “These critical resources will allow mission-driven lenders to expand access to capital in financially underserved communities, which will help increase contributions to long-term economic growth.”
The institutions that received grants through CDFI ERP include banks, holding companies and credit unions as well as non-depository loan funds and venture funds that are designated as CDFIs by the Treasury Department’s CDFI Fund. The selected financial institutions specialize in delivering responsible capital, credit and financial services to underserved communities.
The CDFI ERP grant funds may be used to support lending related to small businesses and microenterprises, community facilities, affordable housing, commercial real estate and intermediary lending to non-profits and CDFIs. The funds can also be used for financial services, development services to support borrowers, and operational support for the CDFI grant recipient.