A message from Bob Annibale
Global Director, Citi Community Development and Microfinance
Less than six months after the establishment of the Communities at Work Fund, millions of dollars are in the hands of local lenders and small businesses. The $200 million Fund, launched in May 2010, channels resources to small and start-up businesses via Community Development Finance Institutions (CDFIs). It is on track to disburse $60 million by the end of this year and a further $40 million has been approved and is expected to be disbursed by the end of the first quarter of next year.
The first loans have been disbursed to ACCION Texas, Cooperative Business Assistance Corporation, IFF (formerly called Illinois Facilities Fund), Self-Help Ventures Fund, New Mexico Community Loan Fund and Enterprise Cascadia, among others.
CDFI Loan Funds have a 30-year history of serving as effective channels for creating economic opportunities and have loaned $16 billion cumulatively in support of 50,500 small businesses, according to 2008 Opportunity Finance Network (OFN) member data. Citi, Calvert Foundation and OFN came together earlier this year to support the sector with $200 million in new funds. Citi capitalized the Communities at Work Fund with $199 million, and Calvert Foundation and OFN provided the balance. Calvert Foundation is managing lending and fund administration and OFN is handling marketing and compliance.
The press release is available here.