Fueling small business lending by supporting CDFIs.

Money is flowing to small businesses in low-wealth and low-income U.S. communities through the $200 million Communities at Work Fund, launched in May by Citi, Calvert Foundation and Opportunity Finance Network (OFN). The Fund, which channels resources to small and start-up businesses via local lenders at Community Development Finance Institutions (CDFIs), is on track to disburse $60 million by year end, creating vital jobs and supporting economic recovery in 39 states and Washington, D.C.

Among the recipients in the first round of disbursements is Self-Help Ventures Fund, a non-profit that provides financing, consumer financial services, technical support, and advocacy for those left out of the economic mainstream. Its president Bob Schall said the Communities at Work Fund loan will help unlock an additional $11 million in funding, enabling Self-Help to deploy $31 million in total towards charter schools in low-income neighborhoods, renovations of vacant inner city property, and new mixed-use development in areas where it operates.

IFF (formerly Illinois Facilities Fund) is using Communities at Work funding to finance Inspiration Corporation's new 60-seat restaurant and catering facility in Chicago's East Garfield Park neighborhood. The restaurant will serve affordable meals to the general public and will be a teaching center in Inspiration Corporation's job training program. The new funds will also help the company expand its role as a local employer, enabling it to grow its full-time workforce by about 25 percent.

CDFI Loan Funds have a 30-year history of serving as effective channels for creating economic opportunities, loaning $16 billion cumulatively in support of 50,500 small businesses, according to 2008 OFN member data. Citi, Calvert Foundation and OFN came together earlier this year to support the sector with $200 million in new funds. Citi capitalized the Communities at Work Fund with $199 million, and Calvert Foundation and OFN provided the balance. Calvert Foundation is managing lending and fund administration and OFN is handling marketing and compliance.

"Funding for CDFIs and community development projects is extremely hard to come by these days, and this $200 million is a significant infusion into our industry," Schall said.

Vikram Pandit, CEO of Citi, said: "Citi is committed to helping small businesses grow and succeed. Working with Calvert Foundation and Opportunity Finance Network, we are helping give small businesses the boost they need during challenging times. These businesses strengthen communities and spur the job creation that is essential to drive our nation's economic recovery."

For more information about the Communities at Work Fund, please visit www.communitiesatworkfund.com.