US Treasury Awards $54.2 Million to Benefit Organizations
Serving Economically Distressed Communities Nationwide

Port Angeles, Wash. – Director Donna J. Gambrell, of the U.S. Department of the Treasury's Community Development Financial Institutions (CDFI) Fund, visited Port Angeles, Wash. today to announce awards totaling $54,181,733 for 89 organizations serving economically distressed communities across the nation. The awards are being made through the fiscal year 2008 round of the CDFI Program. The award recipient organizations are headquartered in 38 states and the District of Columbia.

"Port Angeles is a long way from the nation's capital, but we selected this location to make our FY 2008 national award announcement to highlight how CDFIs are successful at implementing innovative approaches to rural economic development," said CDFI Fund Director Gambrell. "By embracing new traditions of sustainability and economic diversification, CDFIs are helping to map the future of rural revitalization and growth."

Treasury held the national award announcement at the Incubator at Lincoln Center in Port Angeles to highlight the three Pacific Northwest-based award recipients: Shorebank Enterprise Cascadia (Ilwaco, WA); Washington Community Alliance for Self-Help (Seattle, WA); and Innovative Housing, Inc. (Portland, OR). In addition, the announcement focuses on the work of many CDFIs in support of the nation's rural communities, bringing residents greater access to affordable credit, capital and financial services. Many CDFIs focus on a "triple bottom line" where the success of their investments is measured not just by financial return but also through community impacts and environmental benefits in the communities they serve.

The awardees were selected after a competitive review of 225 applications received by the CDFI Fund from organizations across the nation that requested, in total, more than $205 million in funding under the FY 2008 round of the CDFI Program.

Since inception, the CDFI Fund has made almost 1,500 awards for over $625 million through the CDFI Program.

Through the CDFI Program, the CDFI Fund invests in and builds the capacity of existing private, for-profit and nonprofit community-based lending organizations known as Community Development Financial Institutions (CDFIs) that serve rural and urban low-income people and communities across the nation that lack adequate access to affordable financial products and services.

The CDFI Program consists of two types of monetary awards: Financial Assistance and Technical Assistance. The program is funded through an annual appropriation from the United States Congress. The CDFI Fund receives applications on an annual basis and awards funds through a competitive process. Since inception, the CDFI Fund has awarded over $625 million through the CDFI Program. In FY 2008, 66 CDFIs received $52 million in Financial Assistance or a combination of Financial Assistance and Technical Assistance awards and 23 organizations received $2 million in only Technical Assistance awards.

Financial Assistance awards allow the CDFI Fund to achieve economic and community development impact by investing in CDFIs that demonstrate the financial and managerial capacity to provide affordable financial products and services to low-income communities and populations. Financial Assistance awards are made only to certified CDFIs (meaning, they have been certified by the CDFI Fund prior to applying for funds), which includes both mature CDFIs and small and emerging CDFIs.

Financial Assistance awards are made in the form of equity investments, loans, deposits, or grants, depending on the form of the applicant's matching funds. Financial Assistance awards must be matched with non-federal funds of the same type, on a dollar-for-dollar basis. Through the match requirement, CDFIs leverage private capital to respond to demand for affordable financial products and services in economically distressed markets and by low-income people. CDFIs respond to this demand by providing loans, investments, training, technical assistance, and basic financial services such as checking and savings accounts.

Through Technical Assistance awards, in the form of grants, the CDFI Fund assists start-up and existing CDFIs to build their organizational capacity to serve their target markets. Both certified and non-certified CDFIs are eligible to apply for Technical Assistance awards; non-certified organizations must meet CDFI certification requirements within three years.

Technical Assistance awards can be used for multiple purposes, including purchasing equipment, materials, supplies, and consulting and contracting services. A Technical Assistance award can also be used to pay for certain personnel salaries/benefits and to train staff or board members. Established CDFIs often use Technical Assistance awards to build their capacity to provide new products, serve current markets in new ways, or enhance the efficiency of their operations. Newer CDFIs often use their Technical Assistance awards to undertake market studies, develop underwriting policies, and purchase computer equipment.

For more information on the CDFI Program, please visit www.cdfifund.gov.

Treasury Economic Update 8.1.08

"Today's jobs data reflect the headwinds affecting the U.S. economy--the housing correction, credit market strains, and higher energy prices. Yesterday's GDP data reflect the positive impact and timeliness of the stimulus payments, which will continue to support spending as we work through these headwinds."
Assistant Secretary Phillip Swagel, August 1, 2008

Employment Fell in July:

Job Growth: Payroll employment fell by 51,000 in July, following a decrease of 51,000 in June. The United States has added about 7.8 million jobs since August 2003. Employment increased in 33 states and the District of Columbia over the year ending in June. (Last updated: August 1, 2008)

Unemployment: The unemployment rate was 5.7 percent in July, up from 5.5 percent in June. (Last updated: August 1, 2008)

Growth Was Moderate in Q2:

Real GDP: Real GDP growth in Q2 was 1.9 percent at an annual rate, up from 0.9 percent growth in Q1. Consumer spending added 1.1 percentage points to growth in the first quarter and net exports added 2.4 percentage points. These positives were partly offset by the continued drag from housing and a large inventory reduction. (Last updated: July 31, 2008)

Signs of Economic Strength Include Exports and Low Inflation:

Exports: Strong global growth is boosting U.S. exports, which grew 10.2 percent over the past 4 quarters. (Last updated: July 31, 2008)

Inflation: Core inflation remains contained. The consumer price index excluding food and energy rose 2.4 percent over the 12 months ending in June.
(Last updated: July 16, 2008)

The Economic Stimulus Package Will Provide a Temporary Boost to Our Economy:

The package will help our economy weather the housing correction and other challenges. The Economic Stimulus Act of 2008, signed into law by President Bush has two main elements--stimulus payments so that working Americans have more money to spend and temporary tax incentives for businesses to invest and grow. Together, the legislation will provide about $150 billion of stimulus for the economy in 2008, providing a meaningful boost to the U.S. economy in 2008.
(Last updated: February 29, 2008)

Pro-Growth Policies Will Enhance Long-Term U.S. Economic Strength:

We made significant progress on the deficit. The FY07 budget deficit was down to 1.2 percent of GDP, from 1.9 percent in FY06. Much of the improvement in the deficit reflects strong revenue growth, which in turn reflects strong economic growth. The economic stimulus package and the slowing economy contribute to the near-term budget deficit. The Mid-Session Review of the Budget projects that the deficit will be 2.7 percent of GDP in FY08 and 3.3 percent of GDP in FY09. Looking ahead, higher spending on entitlement programs dominates the future fiscal situation; we must squarely face up to the challenge of reforming these programs.

http://www.treas.gov/economic-plan/