U.S. Bancorp Community Development Corporation (USBCDC), is financing $50 million to help provide loans through the Small Business Adminstration (SBA). The loans will help struggling small businesses. USBCDC is the tax credit and community investment subsidiary of U.S. Bank, which is based in Minneapolis.
The money will go to seven community development financial institution (CDFI) customers. Each CDFI recieves between five to ten million in loans. CDFI’s give investments and resources to struggling communities, some who aren’t eligible for regular small business financing. Often, they help women and minority-owned businesses.
Zack Boyers, chief executive officer for USBCDC.
“There is great need across the country and small businesses are among the hardest hit by this global pandemic,” said Zack Boyers, chief executive officer for USBCDC. “In addition to the federal funding programs, we’ve provided financing through our community development corporation to support these CDFIs. CDFIs are committed to supporting entrepreneurs and small businesses in low-income and underserved communities and that means collectively, these CDFIs will help keep paychecks flowing to employees who may need it the most.”
U.S. Bancorp has more than 70,000 employees and $543 billion in assets as of March 31st, 2020. It’s the parent company of U.S. Bank National Association, the fifth largest commercial bank in the United States.
U.S. Bank has been a long-time partner with CDFI’s. In 2019 the company helped ensure that more than $400 million was available to CDFI’s. U.S. Bank has also provided other means of support by donating $4 million to three nonprofits- United Way, LISC, and Operation HOPE. The company also announced that it’s $25 million in grants can be used by nonprofits for general operating expenses.
One of the seven CDFI’s is MoFi, which provides loans to individuals, businesses, and communities in Wyoming, Montana, Idaho, and parts of Washington and Oregon.
Dave Glaser, Mofi president.
“U.S. Bank’s support of MoFi, and more importantly, of the people and communities MoFi serves across the Northern Rockies, is helping hundreds and hundreds of businesses weather the COVID-19 crisis,” said Dave Glaser, MoFi president. “U.S. Bank’s partnership with MoFi is ensuring that small businesses are getting a lifeline when they need it most.” MoFi is also one of 30 nonprofits that recently received a U.S. Bank Market Impact Fund grant.
In addition, U.S. Bank is doubling employee matching gift contributions to help organizations recover during this time. The company has set up a virtual volunteer network as well, so that employees can assist nonprofits.
Another CDFI called Metropolitan Economic Development Association (Meda), provides business consulting, access to capital, and market opportunites for minorities in Minnesota.
Alfredo Martel, president and CEO of Meda.
“We are grateful to U.S. Bank for their constant support over the years,” said Alfredo Martel, president and CEO of Meda. “This capital injection into our CDFI loan fund is a reflection of their decisive and steadfast partnership in our mission of helping minority entrepreneurs succeed. It will allow us to directly assist many minority-owned businesses during this unprecedented time of economic uncertainty.”