KGEFCU Secures COVID-19 Relief Fund | The garden island
LIHU’E – The Federal Credit Union of Kaua’i Government Employees last week received $ 1.8 million in COVID-19 assistance funds released by the US Department of the Treasury.
The amount is part of a national award of $ 1.25 billion to 863 community development finance institutions, a designation obtained by KGEFCU in December 2020, a press release from KGEFCU reads.
âThese funds strengthen our ability to better serve borrowers who are traditionally unable to access capital,â said Monica Belz, CEO and President of KGEFCU.
âBy developing a more equitable capital system, we empower our local business community, create meaningful jobs and ensure that local talent can flourish. This is our commitment to resilience and recovery in Kaua’i.
The award announcement was made at the White House by Vice President Kamala Harris with Treasury Secretary Janet L. Yellen, where more than 860 CDFIs, including 244 credit unions, have secured grants that provide vital funding to underserved communities.
The grants will be made through the Treasury’s CDFA Rapid Response Program and will provide the necessary capital for CDFIs to respond to the economic challenges created by the pandemic.
“By serving places that the financial sector has not always served well, CDFIs improve our entire economy,” Yellen said.
âWe know that for every dollar injected into a CDFI, it catalyzes an additional eight dollars of private sector investment,â she said. âThe President and Vice President have presented a very ambitious agenda – ‘Build Back Better’, eliminate systemic racism, create an economy that works for everyone. I believe this is what it looks like in practice. By channeling more capital into CDFIs, we are translating these ideas into reality. “
DFI RRP grant funds will be used to support eligible activities such as financial products, financial services, development services, and certain operational activities, and to enable CDFIs to build up capital reserves and loss reserves. ready.
The award recipients include 58 organizations receiving a total of $ 54.6 million in awards who have committed their awards to investments in Native American, Native Alaskan, and Native Hawaiian communities.
A CDFI can be a bank, credit union, loan fund, or venture capital fund. The CDFI approach represents a thriving model of public-private partnership where limited federal resources are used to attract private sector investment in low-income communities. KGEFCU is one of nine CDFIs in the state to have received this award, and the only CDFI in Kaua’i to have received RRP funds.
KGEFCU, following a name change in 1990, was originally established as Kaua’i T&C Federal Credit Union in 1947 as a credit union for employees of the Territory of Hawaii ‘i and Kaua’i County to help families with basic financial needs. , and to invest and improve the quality of life on the island.
Since its creation in 1994, the CDFI Fund has granted more than $ 3.9 billion to CDFIs, community development organizations and financial institutions.
In addition, the CDFI Fund has allocated $ 61 billion in tax credits to community development entities through the New Markets Tax Credit Program and has secured bonds for more than $ 1.7 billion. dollars through the CDFI bond guarantee program. For more information about the CDFI Fund and its programs, visit cdfifund.gov.
Dennis fujimoto, editor and photographer, can be reached at 245-0453 or [email protected]