Accompany Capital Awarded Funding by US Treasury’s CDFI Rapid Response Program
This June, the US Treasury awarded $1.25 billion in COVID-19 relief funds to 863 community development financial institutions (CDFIs) through its CDFI Fund’s Rapid Response Program. This generous – and much-needed funding – will be awarded in addition to the CDFI Fund’s annual grants in order to provide the necessary capital for CDFIs like Accompany Capital to respond quickly to the economic challenges created by the COVID-19 pandemic, particularly in underserved communities. The grants were formally announced by Vice President Kamala Harris with Treasury Secretary Janet Yellen at a White House press conference that also included Congresswoman Maxine Walters, Chairwoman of the House Committee on Financial Services, Senator Mark Warner, member of the Senate Committee on Banking, Housing, and Urban Affairs, and Lisa Mensah, President & CEO of Opportunity Finance Network, our national association of community development financial institutions (CDFIs).
We are very pleased that Accompany Capital received $1,826,265, which is the program’s highest level of funding, and which will increase our ability to help businesses in New York City keep their doors open. For the past 10 years, Accompany Capital has received annual awards from the Treasury’s CDFI Fund, which have enabled us to lend a total of $10,700,00 in loans to small and micro-businesses. The CDFI Fund designed the Rapid Response Program to disburse additional funds rapidly this year in light of the nationwide economic impacts of the COVID-19 pandemic.
We were also very pleased that there was a special recognition and appreciation this year for the role that CDFIs played in responding to the needs of micro and small businesses during the pandemic. That recognition, and this current administration’s full support, as shown by Vice President Harris and Secretary Yellen’s participation, has recognized our sector as “first responders” for the millions of family-owned businesses that provide critical services in communities.
Secretary Yellen noted, “In serving places that the financial sector historically hasn’t served well, CDFIs lift our whole economy up. We know that for every dollar injected into a CDFI, it catalyzes eight more dollars in private-sector investment, meaning that today’s announcement might lead to an additional $10 billion in investment. The President and the Vice President ran on a very ambitious agenda – ‘Build Back Better,’ unwinding systemic racism, creating an economy that works for everyone. I believe this is what that looks like in practice. By channeling more capital into CDFIs, we are translating those ideals into reality.”
CDFI Fund Director Jodie Harris added, “CDFI RRP awards will enable CDFIs to help businesses keep their doors open, help families make ends meet, and help maintain important community facilities during this difficult time.”
That is exactly what Accompany Capital plans to do with this year’s substantial grant: help businesses in New York City remain in business and continue to provide services, create jobs, and keep their communities vibrant and safe.