Locus secures major funding from the CDFI Fund reinforcing its role as a leader in enhancing economic opportunities in under-resourced communities.
Richmond, VA — Locus is proud to announce that it has received several significant awards from the U.S. Department of Treasury’s Community Development Financial Institutions (CDFI) Fund, totaling over $70 million. This includes $65M in allocations through the New Markets Tax Credit Program, $3.8 million from the Healthy Food Financing Initiative (HFFI), $1.25 million in financial assistance to enable Locus to meet the demand for affordable financial products in economically distressed communities, $485,000 for persistent poverty counties, and $280,369 from the Bank Enterprise Award Program.
The CDFI Program provides monetary awards to invest in and build the capacity of specialized financial institutions called Community Development Financial Institutions (CDFIs), empowering them to grow, achieve organizational sustainability, and contribute to the revitalization of low-income and distressed communities nationwide.
“These awards allow us to enhance our efforts in promoting economic development and social equity in our communities. They also validate the dedication and hard work of our team,” said Clyde Cornett, Executive Vice President/Chief Financial Officer & Interim CEO.
The New Markets Tax Credit (NMTC) Program award marks the largest funding Locus has ever received from this initiative, highlighting the organization’s commitment to helping economically distressed communities attract private investment capital. The CDFI Fund estimates that, “historically, NMTC Program awards have generated $8 of private investment for every dollar invested by the federal government.” This funding will enable Locus to help fill project financing gaps by allowing investors to make larger investments than would otherwise be possible. The additional funding will also empower Locus to invest in new financial products and deepen its outreach efforts, helping drive sustainable economic development in the communities it serves.
The HFFI award marks the largest funding Locus has ever received from this initiative, highlighting the organization’s commitment to promoting healthy food access in underserved communities. This funding will enable Locus to expand on its initiatives aimed at increasing access to fresh food, directly benefiting communities that have experienced a lack of investment.
Since 1994, the CDFI Fund has provided more than $7.8 billion through a variety of monetary award programs all to increase the impact of CDFIs and other community development organizations in economically disadvantaged and underserved communities.
As Locus moves forward with these new resources, the organization remains committed to amplifying the voices of diverse stakeholders to address the forces that hinder sustainable economic development and empower communities through its work.
About Locus
Locus (formerly Virginia Community Capital) is a $335 million nonprofit and parent organization for a family of social enterprises, which includes Locus Bank, Locus Impact Fund, Locus Capital, and the Community Investment Guarantee Pool, or CIGP. The mission of Locus is to create equitable access to capital by developing community partnerships and innovative tools that tackle systemic challenges and advance opportunities. Locus employs solutions to address inequities, including lending, banking, impact-driven programs, place-based investments, and strategic consulting and work with each community to build investment strategies that lift their assets and meet their unique needs. To learn more, visit locusimpact.org.