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Equitable Recovery Program

The Consolidated Appropriations Act of 2021 provided $1.75 billion to the CDFI Fund to award grants to CDFI to help them respond to the economic impacts in low- or moderate income communities that were disproportionally impacted by the COVID-19 pandemic. The CDFI ERP is designed to:

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  • Provided fundings to CDFIs to expand lending, grant making, and investment activities in low or moderate income communities and to borrowers, including minorities, which have significant unmet capital and financial services needs and have experienced disproportionate economic impacts from the COVID-19 pandemic; and

  • Enable CDFIs to build organizational capacity and acquire technology, staff, and other tools necessary to accomplish the activities under a SDFI ERP Award.

CTC’s ERP-Based Loan Products

CTC has designed the following Financial Products to help mitigate these impacts:

  • Grants and Personal Loans will be made to low to moderate income (LMI) individuals to help them recover. Management expects Grants to average $10K, and Personal Loans to average $7.5K, with a 12 to 24-month term at 7-10% interest. Borrowers are anticipated to include:

  1. Students who are currently enrolled, or wish to enroll, in skills training programs for high-demand occupations including construction and health.

  2. Recent graduates of vocational schools who need to finance the purchase of “tools of the trade” to be employable in their chosen occupation. For example, it is customary for vehicle mechanics to have their own tools, as it is for chefs to have their own knives and other resources.

  3. Individuals seeking to improve their credit rating by consolidating debt.

  4. Individuals who need to travel for medical procedures due to lack of availability on-island

  5. Families to help resolve financial emergencies that could result in homelessness or cutoff of essential utilities and services.

  6. Owners of substandard housing who wish to finance improvements.

  • Business Loans will be made to help small businesses, farms, and nonprofits with LMI owners that have been disproportionately impacted by the pandemic to recover. Business Loans are expected to average $100K with a 36-month term at 6-8% interest.

  • Residential Construction Loans including predevelopment loans for new construction and rehabilitation to increase availability and quality of affordable housing. Residential Construction Loans are expected to average $150K with a 12-month term at 6-8% interest.

  • Commercial Construction Loans and predevelopment loans to developers and business for new construction and rehabilitation of commercial facilities that will create permanent jobs for LMI individuals. Commercial Construction: are expected to average $500K with a 24-month term at 6-8% interest.

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