To provide funding to cdfis to support, prepare for, and respond to the economic impact of the covid-19 pandemic

The Department of the Treasury's Community Development Financial Institutions Rapid Response Program (CDFI RRP) awarded Ariel Economic Development Fund LLC $200,000 under the CFDA 21.024 program to support, prepare for, and respond to the economic impact of the COVID-19 pandemic. Per the award, the grantee may use funding for financial products, financial services, loan loss reserves, development services, and capital reserves (for regulated institutions only). Additionally, up to $30,000 (15%) may support compensation and fringe benefits, professional services, travel, training and education, equipment, and supplies. The goal is to help certified Community Development Financial Institutions aid their investment areas and target populations in weathering pandemic-related economic challenges. Funding must be used by December 31, 2023.

Activities

Cdfi rapid response program awards may be used in any of the five categories supporting the provision of financial products and services, including: (i) financial products; (II) financial services; (III) loan loss reserves; (IV) development services; and (v) capital reserves (note: only regulated institutions may use a cdfi RRP award for financial services and capital reserves). In addition, the greater of $200,000 or 15% of the grant may be expended in 7 categories supporting operations: (VI) compensation - personal services; (VII) compensation - fringe benefits; (VIII) professional service costs; (IX) travel costs; (x) training and education costs; (XI) equipment; and (XII) supplies. End goal/expected outcomes: the goal of the cdfi rapid response program is to help cdfis support, prepare for, and respond to the economic impact of the covid-19 pandemic.

Intended beneficiaries

Certified cdfis and investment areas and targeted populations. Certified cdfis may be for profit organization, private nonprofit institution/organization, and other private institution/organization, as defined in 12 C.F.R. 1805.

Subrecipient activities

Only in the case where a cdfi depository institution holding company applicant intends to carry out the activities of an award through its subsidiary cdfi insured depository institution, as identified in its assistance agreement with the cdfi fund.