The Biden administration unveiled a plan in early March to invest $9 billion in minority communities. The source of funds for the “Emergency Capital Investment Program of the US Treasury Department is funds that were approved in the $900 billion stimulus package that was passed in December and signed by former President Donald J. Trump.
Community Development Financial Institutions and minority lending institutions, which provide affordable lending options to low-income consumers and businesses, will see infusions of capital as part of the Biden administration’s strategy to achieving a more inclusive community.
The new program will make direct investments in local lenders that support small businesses and consumers in low-income communities. The total investments in minority communities will be $9 billion. The US Treasury is also putting in place two separate programs to that will provide an additional $3 billion in grants and other support to the lenders. See full New York Times article here.