U.S. Treasury Official to Announce $54.2 Million to Benefit Economically Distressed Communities Nationwide

Two Washington Organizations Among National Award Recipients

August 26, 2008

Washington, DC -- Director Donna J. Gambrell of the U.S. Department of the Treasury’s Community Development Financial Institutions (CDFI) Fund will be in Port Angeles, Washington on Thursday, August 28th to announce the organizations from across the nation that have been selected to receive $54.2 million in awards under the FY 2008 round of the Fund’s CDFI Program.

The city of Port Angeles has been chosen as the site for the national award announcement to not only highlight the two Washington-based award recipients, but to focus on the work that many CDFIs do to support the revitalization and growth of the nation’s rural communities. Many of these CDFIs focus on a “triple bottom line” where the success of their investments is measured not just by financial return but also by producing community impacts and environmental benefits in the communities they serve. The awardees were selected after a competitive review of 225 applications received by the CDFI Fund from organizations across the nation that requested more than $205 million in funding under the FY 2008 round of the CDFI Program.

The following event is open to the press:

Who
Donna J. Gambrell, Director, CDFI Fund, U.S. Department of the Treasury Representative of Senator Patty Murray and Local Elected Officials

What
$54.2 Million National Award Announcement

When
Thursday, August 28, 2008 at 10:30 a.m. Pacific Daylight Time

Where
Business Incubator at the Lincoln Center
905 West Ninth Street
Port Angeles, WA 98363

Photo Opportunity
Award Presentation with Washington-based Organizations

About the CDFI Program

Through the CDFI Program, the CDFI Fund invests in and builds the capacity of existing private, for-profit and nonprofit community-based lending organizations known as Community Development Financial Institutions (CDFIs) that serve rural and urban low-income people and communities across the nation that lack adequate access to affordable financial products and services.

The CDFI Program consists of two types of monetary awards: Financial Assistance and Technical Assistance. These awards are funded through an annual appropriation from the United States Congress. The CDFI Fund receives applications on an annual basis and awards funds through a competitive process. Since inception, the CDFI Fund has awarded $620 million through the CDFI Program. In FY 2008, 66 CDFIs received $52 million in Financial Assistance or a combination of Financial Assistance and Technical Assistance awards and 23 organizations received $2 million in only Technical Assistance awards.

Financial Assistance
Financial Assistance awards allow the CDFI Fund to invest in CDFIs that demonstrate the financial and managerial capacity to provide affordable financial products and services to low-income communities and populations. Financial Assistance awards are made only to certified CDFIs (meaning, they have been certified by the CDFI Fund prior to applying for funds), which includes both mature CDFIs and small and emerging CDFIs.

Financial Assistance awards are made in the form of equity investments, loans, deposits, or grants, depending on the form of the applicant’s matching funds. Financial Assistance awards must be matched with non-federal funds of the same type, on a dollar-for-dollar basis. The match requirement enables CDFIs to leverage private capital to respond to demand for affordable financial products and services in economically distressed markets and by low-income people. CDFIs respond to this demand by providing loans, investments, training, technical assistance, and basic financial services such as checking or savings accounts.

Technical Assistance
Through Technical Assistance awards, in the form of grants, the CDFI Fund provides funding to start-up and existing CDFIs, helping them build their organizational capacity to serve their target markets. Both certified and non-certified CDFIs are eligible to apply for Technical Assistance awards; non-certified organizations must meet CDFI certification requirements within three years.

Technical Assistance awards can be used for multiple purposes, including purchasing equipment, materials, supplies, and consulting and/or contracting services. It can also be used to pay for certain personnel salaries/benefits and to train staff or board members. Established CDFIs often use Technical Assistance awards to build their capacity to provide new products, serve current markets in new ways, or enhance the efficiency of their operations. Newer CDFIs often use their Technical Assistance awards to undertake market studies, develop underwriting policies, and purchase computer equipment.

For more information on the CDFI Program, please visit www.cdfifund.gov.

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