The Treasury Department announced that banks that are certified as community development financial institutions (CDFIs) can utilize funds from the government’s $700-billion financial rescue package. CDFI banks will be able to use these new funds to finance projects and activities such as small businesses, developing and operating community facilities, or constructing housing in low-income communities. This is a win for a coalition of Foundation-supported organizations, including the CDFI Coalition, the Opportunity Finance Network, ShoreBank, and the National Federation of Community Development Credit Unions. To date, MacArthur has provided almost $300 million in grants and program-related investments to CDFIs in the U.S.
In addition to its grantmaking, the Foundation makes program-related investments (PRIs), which are low-cost loans and equity investments provided at below-market rates to support charitable activity. PRIs extend the reach of traditional philanthropy by helping recipients attract additional capital from public and private financing sources.
Since 1986 the Foundation has awarded more than $200 million in PRIs to more than 100 nonprofit and for-profit organizations in the U.S. and abroad. Currently, most of the Foundation's PRIS are used for two purposes within the Program on Human and Community Development.
To support specialized intermediaries known as Community Development Financial Institutions (CDFIs). These organizations provide financial services and products to people and communities that are underserved, economically disadvantaged, or distressed. Across the United States there are more than 700 CDFIs that collectively provided, in 2004 alone, more than $4 billion in loans, investments, and financial services.
To support Window of Opportunity, a $150 million grant and PRI initiative designed to help preserve affordable rental housing across the country.
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