Bank of America today announced its current portfolio of loans, deposits and investments to Community Development Financial Institutions (CDFIs) now exceeds $2 billion. This includes approximately $100 million in deposits to minority depository institutions (MDIs) and investments of nearly $36 million of equity in 21 MDIs as part of the company's recent commitment of up to $50 million. These investments build on 25 years of partnership through which Bank of America remains the largest private investor in CDFIs in the U.S., providing capital to more than 250 CDFIs across all 50 states and the District of Columbia.
CDFIs provide affordable, responsible loans and technical assistance to low-income and other underserved clients and communities. Bank of America's support of CDFIs, including for Paycheck Protection Program (PPP) lending through the health crisis, extends the reach of what the company can do on a direct basis, helping to fuel social and economic progress for individuals, small businesses and communities.
"Our work with CDFIs is crucial to our ability to provide access to capital for thousands of individuals and small businesses who are the backbone of our local communities," said Brian Moynihan, CEO of Bank of America. "We are focused on providing capital in areas where opportunity gaps exist, and CDFIs are able to provide relief and make a real impact - quickly responding and adapting to deploy capital and hands-on guidance when small businesses need it most."
In response to an increased need for small business support in 2020, Bank of America committed and exceeded $250 million in new capital to CDFIs to provide them with the liquidity needed to make Paycheck Protection Program (PPP) loans to their clients, along with $10 million in grants to help with CDFI operations.
CDFIs are an important component of the recently launched Bank of America Access to Capital Directory, a first-of-its-kind platform to help educate women-owned businesses in the U.S. on navigating the capital landscape and identifying potential sources of funding, such as equity, debt and grant capital.
According to Opportunity Finance Network1, CDFIs have provided more than $82.7 billion in cumulative financing to underserved communities. This financing helped start or expand more than 448,541 small businesses, 2.1 million housing units and 12,072 community facing projects, including schools, child care centers and health care facilities, and helps create or maintain more than 1.8 million jobs.
Bank of AmericaAt Bank of America (NYSE: BAC), we're guided by a common purpose to help make financial lives better, through the power of every connection. We're delivering on this through responsible growth with a focus on our environmental, social and governance (ESG) leadership. ESG is embedded across our eight lines of business and reflects how we help fuel the global economy, build trust and credibility, and represent a company that people want to work for, invest in and do business with. It's demonstrated in the inclusive and supportive workplace we create for our employees, the responsible products and services we offer our clients, and the impact we make around the world in helping local economies thrive. An important part of this work is forming strong partnerships with nonprofits and advocacy groups, such as community, consumer and environmental organizations, to bring together our collective networks and expertise to achieve greater impact. Learn more at about.bankofamerica.com, and connect with us on Twitter (@BofA_News).
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1 Opportunity Finance Network, Impact Performance; https://ofn.org/impact-performance
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SOURCE Bank of America Corporation