GROW South Dakota Receives Over $2 Million in CDFI Grants
Tuesday, October 04, 2016
GROW South Dakota was recently awarded more than $2 million in three substantial grants from the U.S. Treasury’s Community Development Financial Institutions Fund (CDFI Fund). GROW SD and NESDEC, both of which are certified CDFIs, received the awards, which will expand their housing and small business lending programs. The grants were announced in late September.
- CDFI Program: Both GROW SD and NESDEC received a combined $1.8 million in CDFI Financial Assistance grants to support the organizations’ housing and business lending. GROW SD will receive $1 million, and NESDEC will receive $842,584. “We’re obviously thrilled to receive these grants,” said Lori Finnesand, Co-CEO. “We’re seeing demand for loans, and these funds will help us help people realize their dreams.”
The CDFI awarded 196 Community Development Financial Institutions (CDFIs) $185.7 million in grants and loans through the CDFI Program.
- Capital Magnet Fund (CMF): GROW SD received a $500,000 grant from the CDFI Fund’s CMF, which focuses on affordable housing. GROW SD will use the funds to provide down payment assistance in the form of deferred second mortgages to borrowers with low to moderate income, with 70% of the funds earmarked for people at or below 80% of the average median income. “We’ve found that many people have the income to make monthly mortgage payments, but they aren’t able to save the funds for a down payment,” said Marcia Erickson, Co-CEO. “Down payment assistance allows them to purchase a home.”
Across the country, the CMF awarded 32 organizations nearly $91.5 million in grants.
"The impact of this program will be tremendous,” said CDFI Fund Director Annie Donovan. “The program requires recipients to leverage $10 of housing and economic development investments for every $1 of federal funds meaning today’s awards will support over $900 million of investment in low-income communities.”
GROW SD and NESDEC will receive the grant funds before the end of 2016 and will begin lending from the funds immediately.
GROW South Dakota is an Equal Opportunity Lender, Provider, and Employer. It has served South Dakota communities since 1966. The organization excels at providing housing, community, and economic development to 10,000 customers annually. GROW South Dakota consists of three separate private nonprofit agencies. Call (605) 698-7654 for more information.
Category: GROW SD