Yarmuth Announces $2.6M in Funding to Louisville Area Community Development Financial Institutions to Support COVID-19 Economic Relief
WASHINGTON – Today, Congressman John Yarmuth (KY-03) announced more than $2.6 million in funding awarded to three Louisville area community development financial institutions (CDFIs) as part of a nationwide effort to help provide direct economic relief in the wake of the COVID-19 pandemic. The grants will be made through Treasury’s CDFI Rapid Response Program (CDFI RRP) and will provide necessary capital for CDFIs to respond to economic challenges created by the COVID-19 pandemic, particularly in underserved communities.
Those receiving awards in Louisville will be:
- Kentucky Habitat for Humanity - $200,000
- Park Community Credit Union - $1,826,265
- LHOME, the Louisville Housing Opportunities and Micro-Enterprise Community Development Loan Fund – $669,000
The three awards amount to a total of $2,695,265 in funding heading to Louisville-based CDFIs, part of more than $14 million awarded statewide in Kentucky. A full list of the $1.25 billion in awards announced nationwide today is available here.
“Since the start of the pandemic, one of the most pressing issues before us has been how we can help families stay in their homes, help businesses keep their doors open, and make sure we best protect our communities from the financial hardship that has accompanied this public health crisis,” said Yarmuth. “Today’s awards will allow our local CDFIs to better assist homeowners, businesses, and promote continued investment in our city and our more underserved communities. I was proud to vote in support of the creation of this $1.25 billion program back in December and I’m thrilled to see funding coming to Louisville.”
The CDFI RRP grant funds will be used to support eligible activities such as financial products, financial services, development services, and certain operational activities, and to enable CDFIs to build capital reserves and loan-loss reserves. The CDFI Fund designed the program to disburse the funds rapidly in light of the nationwide economic impacts of the COVID-19 pandemic.
“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,” said Treasury Secretary Janet Yellen. “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.”
The CDFI RRP was authorized by the Consolidated Appropriations Act of 2021, the bipartisan December omnibus funding agreement that Yarmuth helped pass through Congress.