CDFA Announces the CDFA-Frost Brown Todd Infrastructure Finance Collaboration
The Council of Development Finance Agencies has partnered with Frost Brown Todd and its affiliate FBT Project Finance Advisors on the new CDFA Intro Infrastructure Finance WebCourse and the CDFA Finance Toolbox video series. This collaboration will focus on financial challenges and opportunities facing communities working to develop or upgrade energy, water, broadband, disaster recovery, transportation, and other services, and provide expert analyses to inform the development finance industry.
Ohio Microlender Launches $10M Ohio COVID-19 Loan Fund
The Ohio Development Services Agency has created a $10 million revolving loan fund to help women- and minority-owned businesses recover from the coronavirus fallout, administered statewide by microlender Economic and Community Development Institute.
Wells Fargo Launches $400M Small Business Recovery Effort
Wells Fargo unveiled details of an approximately $400M effort to help small businesses impacted by the ongoing COVID-19 pandemic remain open, retain employees and rebuild. The Open for Business Fund's initial grants will allocate $28M to CDFIs aimed at empowering Black and African American-owned small businesses, which are closing at nearly twice the rate of the industry, according to the National Bureau of Economic Research.
Georgia Senators Secure $12M in CARES Act Funding
Through the Coronavirus Aid, Recovery and Economic Stability (CARES) Act, the U.S. Department of Commerce's Economic Development Administration is awarding Recovery Assistance grants to capitalize and administer Revolving Loan Funds that will provide critical gap financing to small businesses and entrepreneurs in Georgia that have been adversely affected by the coronavirus pandemic.
MVEDC Is Now Valley Partners; Launches New Loan Fund
In order to better identify and align itself with its mission and impact across the region, what was once the Mahoning Valley Economic Development Corp. is now Valley Economic Development Partners. Additionally, last week, it was announced that Valley Partners would receive a $5M EDA grant drawn from the Coronavirus Aid, Relief and Economic Security, or CARES, Act which will be used to create a new fund – the Valley Partners Revolving Loan Fund.
DoorDash Will Match Loans to Black-Owned Businesses
DoorDash's loan program aims to help improve Black-owned businesses' access to capital by matching funds from Kiva, a nonprofit lending company. DoorDash has established a $150,000 revolving loan fund to support the program, the company said.
States Prepare to Spend Millions to Address Flooding
A handful of states are preparing to spend millions of dollars to address flooding, as extreme rain and sea level rise threaten communities along rivers and coastlines. On July 1, Virginia's new Community Flood Preparedness Fund went into effect. It will set aside an estimated $45 million a year for flood mitigation projects.
Fed's $600B Main Street Lending Program Sees Lukewarm Interest
The government is offering to lend up to $600 billion to help small and midsize businesses weather the coronavirus-induced recession, but so far interest has been sparse. Under the Main Street Lending Program, commercial banks lend to companies and then sell all but a small portion of each loan to the Federal Reserve. The Treasury Department stands ready to cover the Fed's losses if companies fail to repay. More than two months after the program was announced, however, some bankers say they are still trying to decide whether to take part.
Capito, Katko Propose Bipartisan, Bicameral Bill to Enhance Revolving Federal Loan Funds
U.S. Sen. Shelley Moore Capito (R-WV) and U.S. Rep. John Katko (R-NY) unveiled bipartisan, bicameral legislation that aims to promote lending to businesses and create jobs by improving access to revolving federal loan funds. Specifically, the Reinvigorating Lending for the Future (RLF) Act of 2020 would reduce barriers to lending for recipients of capitalization grants through the U.S. EDA Revolving Loan Fund Program, according to a bill summary provided by the senator's office.
Comerica Bank Pledges $1M to Launch Black-Owned Business Fund
Comerica Bank will commit $1 million to a new initiative focused on increasing access to capital for black-owned businesses. The small business program is set to pilot in Comerica's five primary markets of Arizona, California, Florida, Michigan, and Texas, and it will become available in all 50 states in 2021.