The Northland Foundation has been awarded a $2 million grant from the U.S. Treasury’s Community Development Financial Institution (CDFI) Fund, part of the federal government’s American Recovery and Reinvestment Act. The grant will strengthen Northland's capacity to provide loans to businesses and nonprofit organizations located in the seven-county region of northeastern Minnesota, an area of the country that has been hard hit by the economic recession.
“This grant award guarantees our continued capacity to provide capital to local businesses and further our mission of supporting economic vitality in the region.”
~ Tom Renier
Official word of the grant award came from Treasury Secretary Tim Geithner, who announced a total of $90 million in financial assistance awards to the Northland Foundation and 58 other Community Development Financial Institutions (CDFIs) in 26 states and Puerto Rico. These 59 grants were made to organizations that are dedicated to helping communities struggling with the economic crisis and will support job retention and new economic recovery projects.
“With a tighter credit market, the number of businesses looking for flexible financing is high,” said John Elden, Director of Business Finance at the Northland Foundation. “We were extremely pleased to learn that Northland's request was among those selected to receive the maximum grant amount. Certainly, the need in northeastern Minnesota is great.”
The CDFI program invests in and builds the capacity of a nationwide network of community-based financial institutions with a primary mission of community development in economically distressed urban, rural, and Native communities. Northland's Business Finance Program is a certified CDFI and has earned an “AA” rating by CARS™ – a comprehensive, third-party analysis of CDFIs.
“It is ironic that, just when businesses and nonprofits need it the most, the capital to sustain and grow their operations can be tougher to come by. This grant award guarantees our continued capacity to provide capital to local businesses and further our mission of supporting economic vitality in the region,” stated Tom Renier, Northland Foundation President.
The CDFI Fund receives grant applications on an annual basis and awards funds through a competitive process. For a complete list of the recent award recipients and profiles, visit http://www.cdfifund.gov.