NEW YORK (3/23/09)--The size and speed of the Treasury’s funding for the Community Development Financial Institutions (CDFI) Fund far outstrips any previous CDFI Fund actions, says the National Federation of Community Development Credit Unions. CDFI’s Fund--just weeks after receiving a $100-million allocation from the American Recovery and Reinvestment Act of 2009--has released its plan to award and disburse the monies in record time. The larger awards will be awarded by the end of June, with a “supplemental” round awarded by the end of September. A total of $145 million will be awarded to CDFIs nationwide. Under the plan:
* CDFIs with applications pending in the current round (2008-09) can amend their applications and apply for an increased amount--up to $2 million for Financial Assistance, and $600,000 for the Small and Emerging CDFI Assistance program. It is anticipated that about $90 million will be awarded by the end of June. * CDFIs that do not have a current application pending can apply for funding totaling $50 million, to be awarded by Sept. 30. Unsuccessful applicants in the June round will be eligible to reapply in this supplemental round. * No matching funds will be required for either round. * Native American CDFIs also will benefit from a higher ceiling on awards and an increase in the total number of Native American CDFI Assistance awards.
The CDFI Fund declared that it will make more awards than in previous rounds and dig further into the applicant pool. Also, awards may be larger than in past years. On Tuesday, from 4:00 p.m. to 5:00 p.m., the federation will be hosting a web conference for its members to discuss the new changes. A representative from the CDFI Fund will be on the call to answer questions, and federation staff will discuss the various resources available to CDCUs. For more information, use the link.