Capital for Change among recipients of federal pandemic relief funds
WALLINGFORD, Connecticut – Capital for Change Inc. is expected to receive more than $1.8 million through a U.S. Treasury award as part of a nationwide relief effort to support communities affected by the COVID-19 pandemic.
The awards are expected to provide capital for CDFIs to respond to economic challenges created by the pandemic, particularly in underserved communities. They were announced June 15 by U.S. Vice President Kamala Harris with Treasury Secretary Janet L. Yellen.
The scope of the $1,826,265 award to Capital for Change is unprecedented, said Cal Vinal, the organization's CEO.
Having flexible capital like this,” Vinal said. “will allow us to address a variety of needs for Connecticut’s residents, nonprofits and businesses.”
In keeping with federal goals, the funding is to be earmarked to support the needs of Capital for Change's borrowers who've been adversely affected economically by the pandemic, Vinal said.
Nationwide, the funds are expected be used to support eligible activities such as financial products, financial services, development services, and certain operational activities, and to enable CDFIs to build capital reserves and loan-loss reserves. The awardees include organizations that serve rural, major urban, and minor urban markets.
In serving places that the financial sector historically hasn’t served well, CDFIs lift our whole economy up,” Yellen said at the time of the announcement. “We know that, for every dollar injected into a CDFI, it catalyzes eight more dollars in private-sector investment, meaning that today’s announcement might lead to an additional $10 billion in investment.
The Treasury Department's CDFI Fund designed its Rapid Response Program to disburse such funds quickly in light of the COVID-19 pandemic's nationwide economic impact. More information about the CDFI Fund and its programs is available online at www.cdfifund.gov.
These awards provide CDFIs with an unprecedented level of flexible capital to help distressed and underserved communities across the country take meaningful steps towards recovering from the debilitating economic impacts of the COVID-19 pandemic said CDFI Fund Director Jodie Harris.
The awards will enable CDFIs “to help businesses keep their doors open, help families make ends meet, and help maintain important community facilities during this difficult time,” Harris said.
Capital for Change's mission is to provide flexible, creative and responsive financial products and services to benefit low- and moderate-income persons, and minority and otherwise underserved individuals, businesses and communities. Its programs and products broaden access to affordable housing, energy efficiency and job opportunities.
More information about Capital for Change is available online at CapitalForChange.org and the organization's Facebook page, “Capital for Change, Inc.”
Capital for Change Inc. was created in 2016 through the mergers of the Community Capital Fund, Connecticut Housing Investment Fund and the Greater New Haven Community Loan Fund, shaping an organization with a statewide history of service stretching back to 1968.