CHARLOTTE, NC - Bank of America today announced it surpassed the $1 billion mark in loans and investments to more than 120 Community Development Financial Institutions (CDFIs) in 37 states. CDFIs include credit unions, investment funds and niche banks that focus on low-income and disadvantaged communities. These local institutions have expertise in evaluating risk and lending and investing in small and micro businesses, charter schools, childcare centers, primary health care facilities, projects on Native American lands, and arranging pre-acquisition and development loans for low-income housing.
"Bank of America is investing more in community-based institutions because small businesses, nonprofit organizations and other local efforts are the engine for job growth and economic activity in our cities and towns," said Andrew D. Plepler, Bank of America's global corporate social responsibility and consumer policy executive. "CDFIs are one of the best channels to reach these organizations."
According to Opportunity Finance Network, the leading network for CDFIs, these institutions provide more than $30 billion in capital to underserved communities with positive results every year. This funding goes to more than 9,000 small businesses, 57,000 affordable housing units, and almost 700 new community facilities, including schools, child care centers and health care facilities, and helps create more than 34,000 jobs.
"Bank of America is the single largest investor in CDFIs. They understand the important role these institutions play in delivering capital for housing, businesses and nonprofits in underserved markets," said Mark Pinsky, president and chief executive officer of Opportunity Finance Network. "We are excited but not surprised to hear Bank of America has lent more than $1 billion to our organizations."
Bank of America's work with CDFIs is part of its 10-year, $1.5 trillion lending and investing goal, which demonstrates its ongoing commitment to addressing the critical needs of local communities.
Bank of America is a longtime leader of community development and homeownership preservation efforts as noted through six consecutive "outstanding" Community Reinvestment Act (CRA) ratings. In 2009, the company commenced its 10-year, $1.5 trillion community development lending and investing goal - the largest ever established by a U.S. financial institution - focused on affordable housing, small business/farm lending, consumer lending and economic development. Bank of America has provided more than $35 million through its Neighborhood Preservation Initiative to aid distressed homeowners and stabilize communities, increasing capacity of nonprofits for foreclosure prevention counseling and the acquisition, rehabilitation and resale of foreclosed properties. The company also created new streamlined guidelines for government agencies using federal Neighborhood Stabilization Program (NSP) grants to more efficiently acquire foreclosed properties. Key to these efforts is Bank of America's commitment to offer loan modifications to as many as 630,000 borrowers over a three-year period, representing more than $100 billion in mortgages.
Source: Bank of America