More than Half of OFN Members Receive Transformative Capital to Advance Equitable Economic Recovery

CDFI Fund’s largest-ever grant program delivers more than $1.7 billion to improve access to capital in underserved communities

The COVID-19 pandemic has had a profound impact on the U.S. economy, with unprecedented disruptions to small businesses, families, and communities across the country. While the economic outlook is improving, the recovery remains uneven. Inflation, rising interest rates, and recent bank failures are raising concerns that low- and moderate-income communities may face increasing challenges in accessing capital and financial services. Against this backdrop, the Department of Treasury’s CDFI Fund has just announced more than $1.7 billion in grants to 603 community development financial institutions (CDFIs) through the Equitable Recovery Program (ERP), the largest grant program in the CDFI Fund’s history.  

The ERP is the last funding from the historic federal investment in community development finance through the Consolidated Appropriations Act of 2021. The bill also included the Emergency Capital Investment Program ($9 billion) and the CDFI Rapid Response Program ($1.25 billion). 

“When we invest in community lenders, we give people across our nation the opportunity to build a business, to buy a home, and to strengthen their community,” Vice President Kamala Harris said at an April 10 White House briefing announcing the grantees. “And we help build a future where all people, no matter where they are or where they start, have the resources they need not only to succeed, but to thrive.” 

Opportunity Finance Network is proud to announce that 222 — more than half — of our members received a total of $578.4 million in grants under this program. The awards reflect our members’ expertise and commitment to advancing an equitable economic recovery. These funds will help CDFIs expand lending, grant making, and investment activities across rural, urban, and Native communities that have significant unmet capital and financial services needs and have experienced disproportionate economic impacts from the pandemic.   

More than 40% of the ERP grant recipients are nonprofit CDFI loan funds spanning rural and farming communities, Native areas, majority-minority census tracts, and communities struggling with persistent poverty. (Click here to see the breakdown of funding and recipients by focus). CDFI loan funds, which represent the vast majority of OFN’s members, have the flexibility to reach deeper into underserved communities. With the right products and services that meet customers where they are, CDFI loan funds successfully manage risk while delivering on their community development mission. These CDFIs benefit most from flexible grant funds like those provided under the ERP.

With their unique understanding of and commitment to the communities they serve, CDFIs are well-positioned to advance an equitable economic recovery by delivering capital and financial services to communities that mainstream financial institutions don’t reach. Through the ERP and other recent investments, the federal government continues to recognize CDFIs’ role as drivers of economic justice. 

OFN is proud of our members that received grants under this program, and we look forward to continuing the work with all our members to build a more equitable, resilient economy. 

ERP Recipients 

OFN received a $3.7 million ERP grant to support our Finance Justice Fund, which accelerates the work of our members to help close the racial wealth gap in communities with disproportionately high rates of persistent poverty and disinvestment.