Why small businesses should look into CDFI Funding
CDFI Fund is a government program through the U.S. Department of the Treasury. It offers competitive grants to lenders across the country, who can, in turn, provide affordable, responsible lending to businesses in underserved communities. It offers access to funding for many small businesses who face obstacles in getting access to credit. Here are just a couple examples of small businesses in NYC who have benefited immensely from CDFI funding:
- The Business Center for New Americans, a Manhattan-based CDFI, provided Long Island City local resident Shah Yafi with a $25,000 loan and helped him start LIC Deli Gourmet, which provides fresh, affordable high-quality food to his community. With the help of CDFI funding, his business has grown and he has been able to create jobs by employing eight residents from the local community.
- CDFI Renaissance Economic Development Corp. started the East Village Explosion Recovery Loan Program to help small businesses get back on their feet after a gas explosion in East Village last year. The program provided $200,000 in funding to five businesses affected by the explosion, enabling all the businesses to open their doors again.
To locate lending institutions in your community that are CDFI certified, go to www.cdfifund.gov/Pages/FAQ.aspx
Read more at www.crainsnewyork.com/article/20161122/OPINION/161129980/an-overlooked-way-for-nycs-small-businesses-to-get-a-loan