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February 8, 2010, 09:00 AM ET
Big Banks Increase Investment in Local Nonprofit Lenders
Community Development Financial Institutions, or CDFIs, are likely to play a growing role in small-business financing as big banks forge partnerships with nonprofit lenders, BusinessWeek reports.
The Obama administration has committed up to $1-billion in Troubled Asset Relief Program funds to provide low-cost capital to CDFIs, which tap federal funds, commercial capital, and foundation grants to finance small companies, housing, and commercial development, particularly in low-income areas. Investing in the nonprofit lenders improves larger institutions' compliance with the Community Reinvestment Act.
Bank of America, JPMorgan Chase, and Wells Fargo have invested hundreds of millions of dollars in CDFIs in recent years, and half of Goldman Sachs's recently announced $500-million program to aid small businesses will go to local financiers.
Comments
1. robe9291 - February 10, 2010 at 10:49 am
Hi Kim,
Thought you might like to see this article if you haven't already.
Enjoy the blizzard,
Bob
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