Funding for Two South Dakota CDFIs Serving Low-Income Rural Communities
Wednesday, September 17, 2014
Nationally, the U.S. Department of Treasury’s Community Development Financial Institutions Fund (CDFI Fund) awarded 185 organizations more than $195.4 million today through the fiscal year 2014 rounds of the CDFI Program. Two South Dakota certified CDFIs, GROW South Dakota and Northeast South Dakota Economic Corporation (NESDEC) were successfully awarded funding to recapitalize their revolving loan funds. GROW SD received a $700,000 grant to provide housing lending and NESDEC was awarded a $205,800 grant and a loan of $1,389,975 for small business lending.
“CDFIs are important community partners providing critically needed financing that not only allows families to buy their first home, or entrepreneurs to start or expand a business, but that generates economic growth and revitalizes America’s low-income and economically-distressed communities,” said Jessica Milano, Deputy Assistant Secretary for Small Business, Community Development, and Housing Policy at the U.S. Department of the Treasury. “These awards will help these CDFIs build their capacity in order to better meet the investment and lending needs of the communities they serve.”
“GROW South Dakota's mission is to provide the innovative advancement of housing, education, and economic opportunities throughout South Dakota", said Marcia Erickson, CEO. The organization is a small and emerging CDFI that received certification in June 2013 for the provision of financial products and development services to a Low-Income Targeted Population of 45 counties in eastern South Dakota. GROW SD will utilize their CDFI award specifically for housing lending and related development services.
“Since 1978, NESDEC has invested over $55 million of lending capital in small businesses to stimulate economic opportunities, provided technical assistance and has built multiple regional partnerships”, says Lori Finnesand, CEO. CDFI certification was originally received by NESDEC in 1996 and recertification was accomplished in 2013. The main financial products and services provided by NESDEC to its 22-county investment area include: (1) Direct Business Loans (2) Certificate of Deposit Pledges and (3) Business Development Services.
GROW South Dakota and Northeast South Dakota Economic Corporation are striving to reach rural communities to improve the quality of life through housing, community and economic development. Historically, these organizations have invested over $50 million in housing development and $55 million in economic development. For more information about their housing and business development programs and services please visit the website www.growsd.org or call (605) 698-7654.