Bank of America Commits $250 Million in Capital & $10 Million in Philanthropic Grants to Community Development Financial Inst...
March 30 2020 - 8:00AM
Business Wire
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).
For more Bank of America news, including dividend announcements
and other important information, visit the Bank of America newsroom
and register for news email alerts.
www.bankofamerica.com
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Reporters May Contact: Kelly Sapp, Bank of America,
1.980.386.9514 kelly.e.sapp@bofa.com
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