Regional lender takes on riskier loans than most commercial lenders
Regional lender Craft3 has been awarded $686,500 through the Community Development Financial Institutions Program, which helps support financial institutions that focus on lending in economically distressed communities.
Craft3, which often takes on higher-risk financing projects than commercial banks, was one of 265 awardees nationally, and also received funding from a related program to help Native Americans. The fund, under the U.S. Department of the Treasury, was established in 1994 to support economic revitalization and development among underserved communities.
Craft3 has secured more than $11 million from the fund, which would face a 23 percent cut under a U.S. House budget proposal. President Donald Trump’s proposed budget would ax the grant program entirely.
The lender posted about the award on Facebook: “This $686,500 Financial Assistance award will contribute to loan capital and increase our net assets, supporting our ability to leverage these funds with up to $3.4 million in debt and provide additional financial assistance to consumer and commercial borrowers who are not able to access traditional capital.”