Source:www.businessweek.com
Citigroup (C) plans to invest $200 million in community lenders that make loans to small businesses in low-income areas, the bank announced on May 5.
The move makes Citi the latest among major lenders to tap Community Development Financial Institutions, known as CDFIs, to get money to small business borrowers that face a tough credit environment.
Citi is partnering with the nonprofits Calvert Foundation and Opportunity Finance Network, a network of CDFIs, to run the $200 million Communities at Work Fund.
Those groups will run the fund and determine which CDFIs to invest in, while Citi will handle underwriting and risk management. Community development lenders can apply online starting May 5.
Posts
