This is a news release from the Office of Fifth District Congressman Harold Rogers.
WASHINGTON, DC — U.S. Rep. Harold “Hal” Rogers (KY-05) announces nearly $4.6 million in COVID-19 relief funds for four community development financial institutions (CDFIs) located in southern and eastern Kentucky. The U.S. Department of Treasury issued the following awards through the CDFI Rapid Response Program (RRP) in Kentucky’s Fifth Congressional District:
- $743,000 for Frontier Housing, Incorporated in Morehead, Kentucky
- $1,826,265 for Kentucky Highlands Investment Corporation (KHIC) in London, Kentucky
- $200,000 for Redbud Financial Alternatives in Hazard, Kentucky
- $1,826,265 for Southeast Kentucky Economic Development Corporation (SKED) in Somerset, Kentucky
“As we continue to recover from the economic impact of the COVID-19 pandemic, this funding will go a long way to support job creation and business expansion where we need it the most,” said Congressman Rogers. “This funding will fast-track financial services for businesses as they revamp operations, providing more hope in our rural region as we move forward.”
The U.S. Department of Treasury awarded a total of $1.25 billion nationwide.
“In serving places that the financial sector historically hasn’t served well, CDFIs lift our whole economy up. We know that for every dollar injected into a CDFI, it catalyzes eight more dollars in private-sector investment, meaning that this announcement might lead to an additional $10 billion in investment,” said Secretary Janet Yellen.
The CDFI 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 capital reserves and loan-loss reserves.
“This grant from the CDFI Fund will be instrumental in helping our region’s companies rebound from the effects of the pandemic,” said Brett Traver, Executive Director of the Southeast Kentucky Economic Development Corporation. “SKED will put these funds to work helping businesses not just recover, but grow, increase revenue and add jobs in Southern and Eastern Kentucky.”