Bank of America Dedicates $12 Million to Support Recovery Efforts
Bank of America Dedicates $12 Million to Recovery Efforts
In the wake of Hurricane Helene, the community of Western North Carolina is on the path to recovery, and Bank of America is stepping up to aid this process with a significant commitment. The bank has announced a crucial funding initiative, unveiling $12 million in zero-interest loans aimed at bolstering homeowner recovery and supporting small businesses affected by the disaster.
Support for Community Development Financial Institutions
The $12 million will be allocated to Community Development Financial Institutions (CDFIs) that play a vital role in the region’s recovery. Bank of America’s funding will specifically support three CDFIs that are deeply engaged with local recovery efforts following the impacts of the hurricane.
Self-Help Ventures Fund
The Self-Help Ventures Fund (SHVF) is set to receive $8 million. This funding will be instrumental in offering flexible home loans through its extensive credit union network in the area, partnering with other lenders to ensure those in need receive the help they require.
Mountain BizWorks
Additionally, Mountain BizWorks will secure $2 million to facilitate low-interest small business funding. This initiative includes a provision for no principal repayment during the first year, making it easier for local entrepreneurs to stabilize and grow their businesses.
Partner Community Capital
Furthermore, Partner Community Capital will also benefit from a $2 million allocation, designed to provide zero-percent interest loans to assist small businesses in their recovery process. This concerted effort showcases Bank of America’s commitment to revitalizing the local economy through substantial financial support.
A Lifeline for Families and Businesses
David Dowd, president of Bank of America Asheville, expressed the bank’s dedication to aiding the community, stating, "These disaster loan funds will make a meaningful difference in the lives of our families and business owners. We encourage everyone to be a part of our region's comeback story by supporting small businesses and enjoying the beauty of our mountains."
This funding isn't Bank of America's first act of support for the community in the aftermath of the hurricane. Previously, the bank provided $1 million in immediate assistance to various organizations aiding in hurricane relief. This support included funding to both the Chamber of Commerce Foundation and food banks in the area, which were integral during the critical recovery period.
Volunteer Efforts Highlight Community Engagement
Bank of America employees have demonstrated extraordinary commitment by volunteering thousands of hours to assist in recovery efforts. Within weeks of the hurricane, around 500 bank teammates conducted over 5,000 damage assessments for the American Red Cross, expediting financial assistance to affected families. They also collaborated with Habitat for Humanity by helping to construct tiny homes and facilitating the reconstruction of properties destroyed by the storm.
Bank of America's Commitment to CDFIs
As the largest private CDFI investor in the United States, Bank of America has invested over $2 billion through loans, deposits, capital grants, and equity investments with over 250 CDFI partners across the nation. Their approach not only strengthens individual families and businesses, but it also aims to foster resilient community structures.
Collaboration with Local CDFIs
The CDFIs involved in this recovery plan have unique missions that align closely with community needs. The Self-Help Ventures Fund has been dedicated to creating economic opportunities in the region for 34 years, helping thousands of residents secure responsible home loans while promoting economic stability.
Empowerment Through Community Support
Mountain BizWorks champions the growth of a vibrant entrepreneurial ecosystem in Western North Carolina. Their special fund, WNC Strong: Helene Business Recovery Fund, has dispensed more than 700 recovery loans, aiding small businesses as they navigate economic hurdles stemming from the hurricane.
Partnering for Success
Partner Community Capital reinforces its commitment by offering not just capital but also advisory services that help empower clients in the community. Their approach ensures that small businesses, non-profits, and local farms receive the support necessary to thrive in a challenging economic environment.
About Bank of America
Bank of America stands as one of the world's foremost financial institutions, providing a comprehensive range of services to individual consumers, small and mid-market businesses, and large corporations. The bank is committed to offering reliable banking, investing, asset management, and risk management solutions. With a footprint that includes approximately 3,700 financial centers and a robust digital banking platform, Bank of America serves around 69 million clients in the U.S. and beyond. The company is publicly traded on the New York Stock Exchange under the ticker symbol (NYSE: BAC).
Frequently Asked Questions
What is the purpose of Bank of America's $12 million funding?
The funding aims to support housing recovery and small business loans for those affected by Hurricane Helene in Western North Carolina.
Which organizations will manage the loans?
The loans will be managed by three Community Development Financial Institutions: Self-Help Ventures Fund, Mountain BizWorks, and Partner Community Capital.
How does this funding help small businesses?
It provides low-interest loans and zero-percent interest options, aiding in financial stability and recovery for businesses impacted by the hurricane.
How has Bank of America contributed previously?
The bank previously donated $1 million for immediate hurricane relief to various organizations in the community.
What roles did Bank of America employees play in the recovery?
Employees volunteered extensively, conducting damage assessments and assisting organizations like Habitat for Humanity to support community rebuilding efforts.
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