LOS ANGELES (CNS) — Six Southern California financial institutions were named Wednesday as recipients of nearly $330 million in federal funds intended to provide loans and other assistance to small and business-owned businesses. to minorities.
Rewards from the emergency capital investment program funds were among $671 million distributed to 10 institutions across California, and nearly $9 billion nationwide, according to the U.S. Treasury Department.
According to the department, the funds are designed to enable financial institutions to “provide loans, grants and forbearance to small businesses and minority consumers, particularly in low-income and financially underserved communities that have the most struggled during the COVID-19 crisis.”
The Southern California institutions receiving funds were:
— Broadway Financial Corp., Los Angeles, $150 million;
— Federal Episcopal Fellowship Credit Union, Los Angeles, $38,000;
— Financial Partners Credit Union, Downey, $35 million;
— New Omni Bank, Alhambra, $39.9 million;
— Orange County Credit Union, Santa Ana, $35 million; and
— PCB Bancorp, Los Angeles, $69.1 million.
Speaking to reporters on Wednesday, Vice President Kamala Harris praised national grants, saying success for small businesses “requires access to capital.”
“To buy, for example, inventory, you need capital; to make a down payment, to hire employees,” she said. “So to grow, these smart entrepreneurs just need access to capital. They have ideas. They have the capacity and the means to work hard, but they need access to capital.”
She noted that minority-owned business owners often face tougher hurdles when applying for loans, “even when they have similar credit profiles to other applicants.”
Meanwhile, the Treasury Department also announced on Wednesday that California would receive up to $1.1 billion from the State Small Business Credit Initiative, authorized under US bailout legislation.
The funding — $10 billion in total nationwide — is designed to enable states and other government entities “to increase access to capital and promote entrepreneurship, particularly in traditionally underserved communities as they emerge from the pandemic,” according to the Treasury Department.
“California is home to the largest and most diverse small business community in the nation,” Governor Gavin Newsom said in a statement responding to the funding award. “We are a state that is driven by innovation and small business entrepreneurship – that is why we have invested billions of dollars to help our businesses recover from the pandemic and to give more Californians a chance to achieve the California Dream. With this funding, underrepresented and underserved business owners will have greater access to the critical financing they need to succeed and thrive.”
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