CDFI Funding Has Been a Big Boost to Small Businesses in NYC

The Community Development Financial Institutions Fund (CDFI) is a federal program consisting of financial institutions that provide funding which expands economic opportunities in low-income communities. CDFIs can be in the form of banks, credit unions, venture capital providers, or microloan funds. They are an often overlooked opportunity for small businesses who need funding. Many small businesses in NYC have received big economic boosts with CDFI funding.

Why small businesses should look into CDFI Funding

CDFI Fund is a government program through the U.S. Department of the Treasury. It offers competitive grants to lenders across the country, who can, in turn, provide affordable, responsible lending to businesses in underserved communities. It offers access to funding for many small businesses who face obstacles in getting access to credit. Here are just a couple examples of small businesses in NYC who have benefited immensely from CDFI funding:

• The Business Center for New Americans, a Manhattan-based CDFI, provided Long Island City local resident Shah Yafi with a $25,000 loan and helped him start LIC Deli Gourmet, which provides fresh, affordable high-quality food to his community. With the help of CDFI funding, his business has grown and he has been able to create jobs by employing eight residents from the local community.
• CDFI Renaissance Economic Development Corp. started the East Village Explosion Recovery Loan Program to help small businesses get back on their feet after a gas explosion in East Village last year. The program provided $200,000 in funding to five businesses affected by the explosion, enabling all the businesses to open their doors again.

To locate lending institutions in your community that are CDFI certified, go to www.cdfifund.gov/Pages/FAQ.aspx

Read more at www.crainsnewyork.com/article/20161122/OPINION/161129980/an-overlooked-way-for-nycs-small-businesses-to-get-a-loan