Feds sending $6.3 million to New Jersey Community Development Financial Institutions
(The Center Square) – The federal government is sending more than $6.3 million to Community Development Financial Institutions (CDFIs) in New Jersey.
Officials say the money from the U.S. Department of the Treasury’s CDFI Rapid Response Program (CDFI RRP) will spur economic activity in communities “disproportionately affected by the COVID-19 pandemic.”
Community Loan Fund of New Jersey and the Cooperative Business Assistance Corp. will each receive more than $1.8 million. In addition, Union County Economic Development Corp. will receive $1.6 million, while Ripple Effect Entrepreneurs Fund will receive $683,000 and 1st Bergen Federal Credit Union and the Greater Newark Enterprises Corp. will each receive $200,000.
“As we start to recover from the pandemic, federal investment through the CDFI Rapid Response Program will inject vital capital into these communities, helping support small businesses, local programs, and families in the process,” U.S. Sen. Cory Booker, D-N.J., said in a news release.
CDFIs can use the money to support eligible activities such as financial products or services, development services and some operations. Menendez previously introduced the Coronavirus CDFI Funding Act to send an additional $1 billion to CDFIs.
“CDFI investments have proven to successfully attract private sector investments in disadvantaged communities to spur economic activity and job creation, grow small businesses and revitalize neighborhoods,” U.S. Sen. Bob Menendez, D-N.J., said in a news release. “The economic impact from the pandemic in many of those same neighborhoods was disproportionately harder.”
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