Citi announces USD200m fund to drive small business lending.
Global Banking News - 05 May 2010(c)2005 - Electronic News Publishing - http://www.enpublishing.co.uk
Citi (NYSE: C) has announced the launch of the Communities at Work Fund, a USD200m fund that will help fuel small business lending in low-wealth and low-income US communities.
The Communities at Work Fund will provide financing to both non-profit and for profit Community Development Financial Institution (CDFI) Loan Funds that will then lend to local businesses in low-income communities.
'Citi's investment in the Communities at Work Fund underscores our commitment to the economic life of the communities we serve and to the US economic recovery,' said Citi CEO Vikram Pandit. 'We recognise that too many small businesses, micro-enterprises, charter schools and community service institutions simply do not have access to credit, yet they are engines for economic growth. The Communities at Work Fund will leverage the expertise of the leaders in the Community Development finance sector and provide much-needed financing in these markets.'
'Citi is delighted to partner with Calvert Foundation and Opportunity Finance Network to deliver new liquidity for CDFIs,' said Andrew Ditton, co-head of Citi Community Capital.
Citi will provide USD199m of capital through a combination of equity and loans with Calvert Foundation and Opportunity Finance Network (OFN) contributing the balance.
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