U.S Bank to close racial gaps announces $1 Million in Grants for Black-Led CDFIs

By Pavithra R

U.S. Bank Community Development Corporation (USBCDC) has announced $1.15 mn in grants to Black-led Community Development Financial Institution (CDFI) partners. The bank, in partnership with the U.S. Bank Foundation, has also announced grants to the African American Alliance of CDFI CEOs. The investment is part of U.S. Bank’s overall $116 million commitment to addressing social and economic inequities.

A total of 15 CDFIs will receive grants ranging from $50,000 to $100,000, while the African American Alliance will receive $150,000 to support Black-led CDFIs to help measure their combined impact and speak as a united voice for the industry. The CDFI’s include: Black Business Investment Fund – Orlando, Florida, Capital Impact Partners – Arlington, Virginia, Carver Financial Corporation – Savannah, Georgia, The Housing Fund – Nashville, Tennessee, Chicago Community Loan Fund – Chicago, Hope Enterprise Corporation – Jackson, Mississippi, Illinois, Texas Mezzanine Fund – Dallas, Texas, City First – Washington, D.C.,Liberty Bank & Trust – New Orleans, Louisiana, Harbor Bank of Maryland Community Development Corporation – Baltimore, Maryland, Local Initiatives Support Corporation – New York, Enterprise/ESIC New Markets Partners – Columbia, Maryland, Opportunity Finance Network – Washington, D.C., Southern Bancorp Community Partners – Little Rock, Arkansas, TruFund Financial/Empowerment Reinvestment Fund – New York.

“These grants will directly support Black communities by providing immediate funding in the wake of COVID-19 and by strengthening relationships between U.S. Bank, our partners, and the communities that we all serve. This emphasis on closing racial gaps is consistent with our ongoing allocation and investment strategy and is a framework for lasting impact,” said William Carson, USBCDC Vice President.

The Grants are to be used for direct support to Black businesses, families, and individuals to offset financial stresses caused by the pandemic or for organizational capacity building.

“The African American Alliance of CDFI CEOs (AAA) is deeply grateful for the recent investments made by U.S. Bancorp’s Community Development Corporation and the U.S. Bank Foundation. The funding will enable AAA to focus on the organization and to build its infrastructure, focus on the leaders and their development, and focus on African American families, small businesses, and communities that have been hard hit by the pandemic,” said Donna Gambrell, chair of the Alliance.

The African American Alliance represents 29 Black-led CDFIs focused on increasing capital and financial services to African American-owned businesses to support African Americans in underserved communities across the country.

“We’re grateful for U.S. Bank’s partnership. This investment will allow TruFund to deploy affordable, flexible capital and put additional resources to work in the communities that most need them. Now more than ever, support of small minority-owned businesses is critical,” said James H. Bason, president, and CEO of TruFund Financial Services, Inc.

Established since 1863, U.S. Bancorp, with more than 70,000 employees and $547 bn in assets as of June 30, 2020, is the parent company of U.S. Bank National Association, one among the largest commercial bank in the United States.