PROVIDENCE – The Providence Revolving Fund was awarded $1.6 million in federal CDFI Rapid Response Program funds, state congressional lawmakers announced Monday.
The announcement follows news last week that the Capital Good Fund also received a $1.3 million grants from the U.S. Treasury-run grant program.
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The Providence Revolving Fund and the Capital Good Fund were the only two Rhode Island-based CDFIs included in this round of funding, which was designed to respond to economic challenges created by the COVID-19 pandemic.
“We are delighted to be the recipient of $1.6 million in CDFI Rapid Response Funds,” said Carrie Zaslow, executive director of the Providence Revolving Fund. “These funds will allow us to increase lending focused on stimulating property redevelopment in underinvested neighborhoods, facilitating opportunities for all households to live in areas of high opportunity, and incentivizing developers to participate in filling the need for affordable units in Rhode Island.”
The funds may be used to support eligible financial products, financial services, development services, and certain operational activities, and to enable CDFIs to build capital reserves and loan-loss reserves, the delegation said.
“CDFIs offer affordable financial products to underserved communities, and the resulting small loans can have a big impact. These federal funds will help ensure that even more qualified working families have access to affordable loans,” Sen. Jack Reed, D-R.I., said in a statement.
