Bank of America (NYSE: BAC) has allocated $10 million in zero-interest loans to Community Development Financial Institutions (CDFI) for ongoing housing, nonprofit facilities, and small business assistance to the victims of last January’s wildfires in Los Angeles County.
The loans will be managed through three CDFIs involved in the region’s disaster recovery efforts. Clearinghouse CDFI will use its fire-designated funding to finance property acquisition or single-family home development undertaken by nonprofit partners, and it will make capital available to small businesses for rebuilding expenses that outpace insurance proceeds and for the funding to resume operations.
Another CDFI, Genesis LA, will originate loans to support homeownership, economic development, and nonprofit facilities in the Altadena and Pasadena areas. And the third CDFI, Pacific Community Ventures’ RESTORE LA Fund, will offer no-fee loans to small businesses of $10,000–$100,000 at a 3% interest rate that can be used to replace damaged property or equipment, support worker retention or payroll expenses, and fund other recovery needs.
Raul Anaya, head of local markets strategy and president of Bank of America Los Angeles, stated, “Having extensive experience supporting clients and communities through various disasters over the years, Bank of America is uniquely positioned with the expertise, capital and connections to support LA’s next chapter. Today’s $10 million capital investment will be allocated by our CDFI partners who have been on the ground supporting these impacted communities. As Angelenos continue our long-term recovery following the January fires, our zero-percent capital helps the CDFIs offer lower interest financing for families and business owners to recover and rebuild.”
