Investments Will Expand Access to Capital to More Small Businesses and Not-For-Profits
As the federal government continues to finalize the details and protocols of implementing the recently passed Coronavirus Aid Relief and Economic Security (CARES) Act, Bank of America today announced that it will provide up to $250 million in capital to community development financial institutions (CDFIs) by funding loans through the newly established Paycheck Protection Program. In addition, Bank of America will provide up to $10 million in philanthropic grants to help fund the operations of CDFIs.
CDFIs, also known as local loan centers, are small and typically not-for-profit providers of loans and technical assistance with a mission of serving low- and moderate-income communities. The funding and grants announced today will be provided to CDFI loan funds and CDFI- and minority-owned banks.
"Small businesses are the backbone of our communities," said Anne Finucane, vice chairman of Bank of America. "CDFIs are integral to the development and sustainment of small businesses, health care centers, schools and other community facilities, as well as the financing of affordable housing and economic development projects. CDFIs will be critical in the response to the unprecedented challenges our communities are facing as a result of the coronavirus."
These commitments, in addition to the ongoing support Bank of America is providing to its 66 million consumer and small business clients, will help expand access to capital and continued ability to handle financial obligations for even more companies and not-for-profits during this humanitarian crisis. To ensure CDFIs can continue to have the capital and ability to support small business and not-for-profits, Bank of America is working with each institution on a case-by-case basis to provide modifications and payment deferrals for those facing liquidity challenges.
Bank of America is the largest investor in CDFIs in the United States – with more than $1.6 billion in loans and investments in over 250 CDFIs.
Last week, Bank of America announced a $100 million commitment to support local communities impacted by the coronavirus. Funds will help not-for-profits increase medical response capacity, address food insecurity, increase access to learning as a result of school closures through a grant to Khan Academy, and provide support to the world’s most vulnerable populations.
Bank of America also announced additional support for consumer and small business clients experiencing hardship from the impact of the coronavirus, including through its Client Assistance Program:
- Consumer and Small Business deposit accounts: clients can request refunds including overdraft fees, non-sufficient funds fees, and monthly maintenance fees.
- Consumer and Small Business credit cards: clients can request to defer payments, refunds on late fees.
- Small business loans: clients can request to defer payments, refunds on late fees.
- Auto loans: clients can request to defer payments, with payments added to the end of the loan.
- Mortgages and home equity: clients can request to defer payments, with payments added to the end of the loan.
- In all of these instances, there will be no negative credit bureau reporting for up-to-date clients.
- Foreclosure sales, evictions and repossessions have been paused.
Bank of America
At Bank of America, we’re guided by a common purpose to help make financial lives better, through the power of every connection. We’re delivering on this through responsible growth with a focus on our environmental, social and governance (ESG) leadership. ESG is embedded across our eight lines of business and reflects how we help fuel the global economy, build trust and credibility, and represent a company that people want to work for, invest in and do business with. It’s demonstrated in the inclusive and supportive workplace we create for our employees, the responsible products and services we offer our clients, and the impact we make around the world in helping local economies thrive. An important part of this work is forming strong partnerships with nonprofits and advocacy groups, such as community, consumer and environmental organizations, to bring together our collective networks and expertise to achieve greater impact. Learn more at about.bankofamerica.com, and connect with us on Twitter (@BofA_News).
Reporters May Contact:
Kelly Sapp, Bank of America, 1.980.386.9514