U.S. Treasury’s CDFI Rapid Response Program Awards $1.8 Million to VCLF for COVID-19 Relief Efforts
The Vermont Community Loan Fund (VCLF) has been awarded $1.8 million dollars from the U.S. Department of the Treasury’s CDFI (community development financial institution) Rapid Response Program, to deploy to Vermont businesses and communities hit hardest by COVID-19.
VCLF is among 863 CDFIs nationwide awarded a total of $1.25 billion dollars in Rapid Response Program funds, to aid underserved communities across the country negatively impacted by COVID-19. Awards were announced by Vice President Kamala Harris, Treasury Secretary Janet Yellen, U.S. Senator Mark Warner, and U.S. Representative Maxine Waters on June 15th.
CDFIs help expand economic opportunity in low-income and low-wealth communities by providing access to loan capital, financial products and services for local residents and businesses.
“The Vermont Community Loan Fund is deeply grateful to be awarded CDFI Rapid Response funds that will allow us to come to the aid of Vermont’s small businesses, nonprofits and organizations struggling as a result of COVID-19,” said VCLF Executive Director Will Belongia. “We’ve helped early care & learning programs like the Morristown After School Program, for example, to build, grow, and create child care openings. We’ve helped Vermont businesses like Booska Worldwide Movers and Vermont Salumi, to develop, to save and create new jobs. With this funding, we can act immediately to do even more, now when it’s needed most,” he said.
CDFI RRP funds will be used to support financial and development products and services, CDFIs to build capital reserves and loan-loss reserves. The CDFI Fund designed the program to disburse the funds rapidly in light of the nationwide economic impacts of the COVID-19 pandemic.
“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. “CDFI RRP 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.”
To learn more about VCLF and its lending, investing and business resource programs, visit investinvermont.org.
About the CDFI Fund
Since its creation in 1994, the CDFI Fund has awarded more than $3.9 billion to CDFIs, community development organizations, and financial institutions through the Bank Enterprise Award Program, the Capital Magnet Fund, the Community Development Financial Institutions Program, the Financial Education and Counseling Pilot Program, and the Native American CDFI Assistance Program. In addition, the CDFI Fund has allocated $61 billion in tax credit allocation authority to Community Development Entities through the New Markets Tax Credit Program, and closed guaranteed bonds for over $1.7 billion through the CDFI Bond Guarantee Program. For more information about the CDFI Fund and its programs, visit cdfifund.gov. For more about the award and the CDFI Rapid Response Program, visit cdfifund.gov/programs-training/programs/rrp.