Vice President Kamala Harris has announced $1.7 billion in grants to be distributed to over 600 community lenders to aid small businesses, entrepreneurs, non-profits, housing, and commercial real estate as they seek to recover from the COVID-19 pandemic.
Vice President Kamala Harris announces $1.7 billion grants. (Photo: NY1)
What is the Aim of the Grant?
The grants are part of the Treasury Department’s Community Development Financial Institutions Fund and aim to provide financial support to minority communities that might not have the necessary resources to approach larger banks for loans.
The lenders that predominantly do business in underserved and overlooked communities are being awarded grants, which they won’t have to pay back, according to a report published in The Hill.
Harris specifically mentioned that the grant recipients will be small institutions that have been affected by the Covid-19 pandemic, including 70 community lenders in Puerto Rico. The other lenders to receive the grants include Community First Fund in Pennsylvania, PACE Finance Corporation in California, and BankPlus in Missouri.
Treasury Secretary Janet Yellen Released a Statement
In a published article in BLOOMBERG, Treasury Secretary Janet Yellen, in a statement, said that the funds will help with the country’s economic recovery. The grant funds will be transformative for grantees, building a more equitable and resilient economy while also helping sustain the country’s strong economic recovery.
These critical resources will enable mission-driven lenders to increase access to capital in financially underserved communities, which will help boost long-term economic growth.
In general, the grants aim to support the rebuilding and revival of small businesses and nonprofits in the wake of the Covid-19 pandemic. These grants will benefit those financial institutions that primarily serve underserved communities, enabling them to support their local economies.
Furthermore, the grants will provide the necessary financial support to help these communities recover and contribute to the long-term economic growth of the country, The Washington Post reports.
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