Menendez, Booker Announce Over $80 Million in Investments for NJ Minority-Serving Financial Institutions

U.S. Senator Bob Menendez, a senior member of the Senate Banking, Housing, and Urban Affairs Committee, and Cory Booker, (both D-NJ), today announced a combined total of more than $80 million in investments for two New Jersey financial institutions from the U.S. Department of the Treasury's Emergency Capital Investment Program (ECIP) to help serve traditionally underserved communities.

First Bergen Federal Credit Union, a Community Development Financial Institution (CDFI) based in Hackensack was awarded $1,330,000. NMB Financial Corporation, a Minority Depository Institution (MDI) based in Fort Lee was awarded $79,062,000.

"We know that our small and minority-owned businesses were some of the most severely impacted from the effects of the COVID-19 pandemic," said Sen. Menendez. "These investments will help individuals and communities throughout our state of New Jersey to build back stronger by providing capital for vital affordable housing and community development projects."

"It is vital that we assist small and minority-owned businesses as they rebuild from the economic downturn caused by the public health crisis," said Sen. Booker. "These investments will aid the efforts of community-based financial institutions to ensure businesses, especially in low-income and financially underserved communities, thrive."

"These essential funds provide opportunity to underserved communities across the country, helping them to regain their footing following the pandemic and strengthening their resilience against future shocks," said Secretary of the U.S. Treasury Janet L. Yellen. "Today's announcement is a significant step toward expanding access to the capital and services to rebuild and fuel long-term economic growth."

Established by the Consolidated Appropriations Act, 2021, the ECIP was created to encourage low- and moderate-income community financial institutions to augment their efforts to support small businesses and consumers in their communities.

Under the program, Treasury will provide up to $9 billion in capital directly to depository institutions that are certified CDFIs or MDIs to, among other things, provide loans, grants, and forbearance for small businesses, minority-owned businesses, and consumers, especially in low-income and underserved communities, that may be disproportionately impacted by the economic effects of the COVID-19 pandemic.

Treasury will set aside $2 billion for CDFIs and MDIs with less than $500 million in assets and an additional $2 billion for CDFIs and MDIs with less than $2 billion in assets.

Sen. Menendez has long led efforts to support the work of CDFIs and annually leads the CDFI Funding Appropriations Request Letter to the Senate Appropriations Committee. Last June, Sens. Menendez and Booker announced the awarding of $6,335,530 in federal funding to support several of New Jersey's CDFIs and their efforts to spur economic activity in underserved communities that were disproportionately affected by the COVID-19 pandemic.

In 2020, Sen. Menendez introduced the Coronavirus CDFI Funding Act, which would have injected an additional billion dollars to the CDFI Fund to support low income, rural and urban communities affected by the pandemic. Over a decade ago, Sen. Menendez fought for the passage of the Small Business Jobs Act of 2010 which includes the CDFI Bond Guarantee Program which allows CDFIs to access long-term, low-cost capital to jumpstart economic growth and community development, all at no cost to taxpayers.

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