The Citi Foundation provides funding that could benefit black businesses and donates $ 15 million to 30 Community Development Financial Institutions (CDFIs).
The $ 500,000 each CDFI raises can be used to help small businesses that are owned by people of color. Often times, financial institutions that provide small business loans and other resources to maintain or grow their businesses, CDFIs are often the agencies serving households hardest hit by COVID-19.
The CDFIs were selected through an open application process based on their records of caring for small businesses owned by colored people and underserved individuals and communities.
The $ 15 million fund was provided by the Citi Foundation from initial net proceeds Citi donated through its participation in the US Small Business Administration's Paycheck Protection Program (PPP). The funding is part of more than $ 100 million that Citi and the Citi Foundation have provided to support COVID-19-related relief efforts and economic efforts around the world.
Brandee McHale, director of Community Investing and Development and President of the Citi Foundation, stated in a press release: “By investing in and trusting these frontline change agents, we are helping these organizations spin, adapt and expand on changing ones Addressing needs and meeting customers where they are. "
Calvin L. Holmes, President of the Chicago Community Loan Fund, added, “The global pandemic has exponentially increased the demand for CDFIs across the country for critical financial assistance to small businesses and color communities. The Citi Foundation's support gives and encourages CDFIs like ours with the flexibility we need to advance our work with these communities at a time of great crisis. "
Janie Barrera, President and CEO of LiftFund, stated, “The funding from the Citi Foundation has enabled us to continue our work in providing credit and services to small businesses and entrepreneurs who do not have access to credit from traditional commercial sources. This latest affirmation of our work gives us the freedom and opportunity to fully address the needs of the local community. "
Here is the list of organizations that have received funding.