In April 2023, the US Department of Treasury’s CDFI Fund announced a historic $1.7 billion in grant awards to 603 through the Equitable Recovery Program (ERP). CDFIs and MDIs were recognized as financial first responders during the COVID-19 pandemic, providing critical access to capital and resources to under-resourced communities.
“When we invest in community lenders, we give people across our nation the opportunity to build a business, to buy a home, and to strengthen their community. And we help build a future where all people, no matter where they are or where they start, have the resources they need not only to succeed, but to thrive.” - Kamala Harris, Vice President of the United States
Inclusiv is honored to announce that we and more than one-third of our member community development credit unions are among the awardees.
ERP is part of the larger $12 billion appropriations for CDFI and MDI under the Consolidated Appropriations Act of 2021 which provided $1.75 billion to the Community Development Financial Institutions Fund (CDFI Fund) to award Community Development Financial Institutions (CDFIs) grants to respond to the economic impacts of the COVID-19 pandemic.
Awards provided to CDFIs are to expand lending, grant-making, and investment activity in low/moderate-income communities, and to borrowers, including minorities, that have significant unmet capital or financial service needs and were disproportionately impacted by the COVID-19 pandemic. The awards also enable CDFIs to build organizational capacity and acquire technology, staff and other tools necessary to advance sustainable and equitable recovery for communities disproportionately impacted by the pandemic.
“The unprecedented investments in CDFIs provide renewed hope for a just economy and resources to turn commitments into impact as we continue to emerge from the pandemic," said Cathi Kim, Director of Inclusiv/Capital. "This capital has given our members and the communities they serve the chance to reimagine how we might expand opportunities and deepen efforts to strengthen financial inclusion and wealth-building initiatives in historically underinvested communities."
The ERP award will enable Inclusiv, as the national association and CDFI intermediary for Community Development Credit Unions, to deepen its investments in communities disproportionately impacted by the COVID-19 pandemic and their racial equity initiatives, including the preservation and support of member MDI credit unions.