This week the US Congress approved $12 billion in funding for Community Development Financial Institutions (CDFIs) and Minority Designated Institutions (MDIs) as part of a $900 billion COVID-19 emergency stimulus funding package.
The funding will expand the capacity of CDFIs and MDIs which serve minority and financially underserved communities across the USA.
Theodora Hadjimichael, Chief Executive of Responsible Finance which represents CDFIs in the UK, said:
“Governments around the world are recognising the vital role that social lenders such as CDFIs play in protecting businesses from the economic fall-out of Covid-19. The US Government in its latest stimulus package has granted $12bn to CDFIs to help secure viable businesses. The EU has improved its support for CDFIs to guarantee 90% of the risk on small loans.
“With over 500,000 SMEs at risk over the next 12 months, we call on our Government to recognise the role CDFIs play in supporting viable businesses through the crisis.”
