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Funding to Three CDFIs Provides Additional Small Business Lending, Housing Assistance as Fire Recovery Continues
As Los Angeles continues its efforts to rebuild, Bank of America is announcing $10 million in zero-interest loans to Community Development Financial Institutions (CDFI) for ongoing housing, nonprofit facilities, and small business assistance. The loans will be managed through three west coast CDFIs involved in the region's disaster recovery efforts following the devastating Eaton and Palisades fires.
- Clearinghouse CDFI (CCDFI) will use its fire-designated funding to finance property acquisition or single-family home development undertaken by nonprofit partners. It will also make capital available to small businesses for rebuilding expenses that outpace insurance proceeds and for the funding to resume operations.
- Genesis LA makes loans to support homeownership, economic development, and nonprofit facilities in the Altadena and Pasadena areas. It is working with various Altadena stakeholders to acquire vacant lots for redevelopment, with nonprofit developers working with local residents to rebuild multiple homes simultaneously, and local businesses rebuilding their storefronts.
- Pacific Community Ventures' RESTORE LA Fund offers no-fee loans to small businesses of $10,000–$100,000 at a 3% interest rate that can be used to replace damaged property or equipment, support worker retention or payroll expenses, and fund other recovery needs. Businesses also receive pro bono technical assistance and access PCV's climate resilience lending program.
"Having extensive experience supporting clients and communities through various disasters over the years, Bank of America is uniquely positioned with the expertise, capital and connections to support LA's next chapter. Today's $10 million capital investment will be allocated by our CDFI partners who have been on the ground supporting these impacted communities. As Angelenos continue our long-term recovery following the January fires, our zero-percent capital helps the CDFIs offer lower interest financing for families and business owners to recover and rebuild," said Raul Anaya, Head of Local Markets Strategy and President, Bank of America Los Angeles.
As the nation's largest private CDFI investor, with $2 billion in loans, deposits, capital grants and equity investments across more than 250 CDFI partners, Bank of America this year began to utilize its CDFI lending platform to allocate capital for disaster recovery needs in Asheville following Hurricane Helene and following the floods in Texas Hill Country.
These capital investments by Bank of America build on the company's ongoing efforts to address the evolving needs of impacted clients and communities, most recently announcing its Rebuild Solution to help qualifying mortgage clients rebuild their homes. The bank will also rebuild its destroyed financial centers in Altadena and Pacific Palisades; and continues to award grants. So far, $3.5 million in philanthropic grants have been distributed to local nonprofits for fire and business support, in addition to thought leadership and employee volunteerism provided to foundations and nonprofits.
For more information on Bank of America's relief efforts, go to BankofAmerica.com/LARebuild.
Bank of America is one of the world's leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving nearly 70 million consumer and small business clients with approximately 3,600 retail financial centers, approximately 15,000 ATMs (automated teller machines) and award-winning digital banking with approximately 59 million verified digital users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 4 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and more than 35 countries. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.
Reporters may contact
Colleen Haggerty, Bank of America
Phone: 1.213.621.7414
colleen.haggerty@bofa.com
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SOURCE Bank of America Corporation
