Johnson Joins CDFI Announcement in Kyle
Wednesday, July 1, 2009
Kyle, SD—Today, U.S. Senator Tim Johnson (D-SD) joined U.S. Treasury Department’s Community Development Financial Institutions (CDFI) Fund Director Donna J. Gambrell and Congresswoman Stephanie Herseth Sandlin at an event in Kyle, SD to announce $8 million in financial assistance awards for Native CDFIs committed to serving economically distressed Native American, Alaska Native, and Native Hawaiian Communities across the nation.
CDFIs provide financial services to underserved communities with the goal of bringing those communities into the economic mainstream. CDFIs include loan funds, banks, credit unions/associations and venture capital institutions. They tend to pair their loans and other financial services with financial training and other assistance, in order to boost their customers’ prospects for financial success. The Treasury Department reports that every federal dollar invested in a CDFI leverages 27 private dollars.
CDFI’s Fund’s Native American CDFI Assistance (NACA) Program is designed to encourage the creation and strengthening of certified CDFIs that primarily serve native communities.
“These community-based organizations can better serve the needs of Indian Country with targeted banking services, so that they can find funds to start businesses and buy homes that meet their needs,” said Johnson. “The CDFI funds and services that these grants help provide are an example of that kind of investment that will help all aspects of the community.”
A total of $11.3 million in grants was announced today nationwide with $8 million coming from the American Recovery and Reinvestment Act, and the remaining $3.3 million coming from the CDFI Fund’s annual appropriated budget.
The five SD awardees will receive grants worth $2.9 million today. Three are receiving financial assistance (i.e., lending capital) via the stimulus: $873,600 to First Nations Oweesta Corporation of Rapid City; $876,060 to the Lakota Fund in Kyle; $870,153 to Mazaska Owecaso Otipi Financial, Inc. of Pine Ridge.
Two organizations will receive technical assistance awards from annual appropriations: $131,451 to Four Bands Community Fund, Inc. of Eagle Butte; $148,316 to The Harvest Initiative, Inc. of Fort Thompson.
The President's budget requests $243.6 million for the CDFI Fund – a 127 percent increase over the $107 million appropriated for FY09. Johnson, a member of the Senate Appropriations Committee, has pledged to work with the Administration on reaching this funding level this coming fiscal year.
http://johnson.senate.gov/newsroom/record.cfm?id=315293
