Citi's newest investment in America: $200 million for low-income communities.

May 6, 2010 11:38 AM By Vikram Pandit, CEO

Today, Citi is making a major investment in the U.S. economy by launching the $200 million Communities at Work Fund (CWF) -- the largest fund in the nation dedicated to offering financing to small businesses and community service providers in low-income communities.

The Fund, and our investment in it, are a true reflection of our strong commitment to the communities we serve, and to providing them credit that creates jobs and opportunity.

The CWF will make capital available to both for-profit and nonprofit Community Development Financial Institution (CDFI) Loan Funds that will then lend to local businesses. CDFI Loan Funds have a 30-year track record of results, including $22 billion in financing and support for more than 48,500 small businesses. CWF loans will drive job creation in some of the country's most distressed communities -- areas that are underserved by traditional financial institutions -- and will help revitalize neighborhoods across the nation.

Citi's partners in this initiative are Calvert Foundation and Opportunity Finance Network, both outstanding community development organizations. We will pair our resources and decades-long experience in expanding access to financial services with the on-the-ground expertise of these groups.

This investment and others like it are part of our dedication to practicing responsible finance by aiding in the economic recovery of the United States. Low-income and underserved communities are left behind even in good times, let alone during a recession. We all can feel proud that our Communities at Work Fund will help the nation address this problem. For more information, visit the Communities at Work Fund website.

*Tagged as: community development , jobs , leadership , recovery , small business

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Comments

05/12/10 7:20 PM Posted by Dan P.

So if you want to help low-income Americans, why don't you want to do business with them?? They helped bail you out too, you know.

http://blogs.reuters.com/felix-salmon/2009/09/24/citis-cities/

05/13/10 12:37 PM Posted by Citi replied to comment from Dan P.

Thank you for your comment. Citi values our relationships with customers of all income levels. We have numerous programs aimed at providing low-income individuals and families with the tools they need to build their financial futures, some which have been featured on New.Citi. We have innovative mortgage assistance programs, and remain committed to helping students of all financial backgrounds afford a college education. As noted in the post "Aiding Recovery from Financial Setbacks," we have contributed $167 million in the last six years to community-based partners who offer a range of programs for those facing economic hardship. And earlier this month, we made a major investment in America's communities through the newly-launched Communities at Work Fund, for which we provided $200 million that will finance small business and community service providers in low-income communities.

05/09/10 5:39 PM Posted by Demetri

Great initiative! I applaud your efforts.

05/08/10 3:16 PM Posted by Harvinder Minhas

Mr Pandit,

I will be interning with Citi in the 388 Greenwich office this summer.

Just wanted to say keep up the good work. You and the rest of Citi are helping unify world economies by bringing them under one global bank. I am inspired by your work and cannot wait to be a part of Citi.