Community Investment Fund of Indiana: $1.5 Million in Federal Grant Helps Provide Needed Funds to Small, Under-Capitalized Businesses (Indianapolis)

Community Investment Fund of Indiana (CIFI) is receiving $1.5 million from the U.S. Department of the Treasury to invest in some of Indiana’s underserved businesses. The Federal grant is from the Treasury’s Covid-19 Rapid Response Program recently passed by Congress.

CIFI is one of 863 community development financial institutions in the nation receiving funds totaling $1.25 billion from this program.

Phil Black, CIFI’s executive director, says, “The grant from Treasury’s  CDFI Fund is a much-needed investment that we will use to help rebuild and grow underserved small businesses in Indiana. Small business recovery is essential to overcoming the economic hardship caused by the pandemic. This investment from the U.S. Treasury will bring more resources to Indiana small-business owners.”

CIFI’s mission is to assist small businesses owned by people of color, women, and low-income individuals living and working in both urban and rural areas. Often, these business owners cannot qualify for regular business financing. CIFI is funded through grants and loans from federal and state agencies, Indiana banks, and other philanthropic organizations.

Vice President Kamala Harris and Treasury Secretary Janet Yellen announced the Federal grants to small-business investment programs across the nation. Secretary Yellen said, “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.”

Background:
Community Investment Fund of Indiana (CIFI) (www.capitalizingindiana.org) provides loans and access to development services to small businesses,  economic development groups, and housing developers in low-and-moderate income areas of Indiana. CIFI is a private non-profit lender funded by banks and other members of the Indiana business community. Banks can benefit through Community Reinvestment Act (CRA) for the investment of resources it makes in CIFI. The organization has loaned over $5.1 million, leveraged over 60 million, and enabled its businesses to create or sustain more than 800 jobs. Minority and women-owned businesses are the majority of CIFI’s borrowers.

CIFI is co-managed by Cambridge Capital Management Corp. of Indianapolis. For over 35 years, Cambridge Capital has provided non-traditional financing to small businesses located throughout Indiana. (www.cambridgecapitalmgmt.com)

CDIF Fund (www.cdfifund.gov) The Community Investment Fund of Indiana is accredited by the CDIF Fund. Since its creation in 1994, the Federal CDFI Fund has awarded more than $3.9 billion to CDFIs, community development organizations, and financial institutions through the Bank Enterprise Award Program, the Capital Magnet Fund, the Community Development Financial Institutions Program, the Financial Education and Counseling Pilot Program, and the Native American CDFI Assistance Program. In addition, the CDFI Fund has allocated $61 billion in tax credit allocation authority to Community Development Entities through the New Markets Tax Credit Program and closed guaranteed bonds for over $1.7 billion through the CDFI Bond Guarantee Program.