BBIF receives $3.5M to boost lending and investment activities in underserved communities
ORLANDO, FL – April 12, 2023
On April 10, 2023, Vice President Kamala Harris and Deputy Secretary of the Treasury Wally Adeyemo announced that the U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) has awarded over $1.73 billion in grants to 603 Community Development Financial Institutions (CDFIs) across the country through the CDFI Equitable Recovery Program (ERP). Black Business Investment Fund (BBIF) has been awarded $3.5 million. The allocation of these funds will enhance our organization’s capacity to support low- and moderate-income communities in recovering from the economic impact of the COVID-19 pandemic, while also promoting long-term economic prosperity.
“In the face of the economic uncertainty caused by the COVID-19 pandemic, BIPOC business owners have been placed in an extremely vulnerable position,” said BBIF President/CEO Inez Long. “Receiving this grant from the CDFI Fund is a significant step forward in helping us to address the needs of these business owners and support their economic recovery. We are thrilled about the opportunities this grant will create for our organization and the positive impact it will have on the communities we serve.”
The ERP is a grant program that aims to boost the lending, investment, and grant-making activities of CDFIs in low or moderate-income communities. These communities have significant financial needs and have been disproportionately affected by the economic fallout from the COVID-19 pandemic. Through this program, CDFIs can acquire the resources they need to expand their organizational capacity, including technology, staff, and other tools that are essential to achieving their objectives. By participating in the ERP, CDFIs can better serve these communities, help bridge the gap in unmet capital and financial services needs, and aid in the overall economic recovery of these areas.
The CDFI ERP is part of a comprehensive range of federal investments that aim to increase access to capital in communities facing barriers to full financial inclusion. Other programs in this suite include the State Small Business Credit Initiative, Emergency Capital Investment Program, and the CDFI Rapid Response Program, which BBIF received an award of $1.28 million from in 2021. Through this program, BBIF played a pivotal role in supporting economic development and access to capital, helping to bridge the financial gap in underserved communities and promote financial inclusion.
Created in 1987, BBIF’s mission is to develop and promote Black business enterprises through education, training, loans, investments, and other activities and to aggressively promote an atmosphere conducive to their development. A mission-driven lender, BBIF helps communities and businesses thrive by providing loan capital and specialized financial technical assistance services. BBIF is a CDFI (Community Development Financial Institution) and CDE (Community Development Enterprise) certified by the U.S. Department of the Treasury, Community Advantage and Micro Loan lender as certified by U.S. Small Business Administration, Money Smart for Small Business collaborator certified by the Federal Deposit Insurance Corporation (FDIC) and is AERIS rated triple star, A-minus. Since inception, BBIF has provided over 1,100 loans totaling $86.8 million and leveraged $378 million in New Markets Tax Credit (NMTC) community investments. BBIF’s investments have helped to create/sustain over 14,000 jobs all while maintaining a historical loan loss rate of 3.5%.