Bank of America announced $10 million in zero-interest loans to Community Development Financial Institutions to support housing, nonprofit facilities and small business assistance as Los Angeles continues rebuilding from the Eaton and Palisades fires.
Three west coast CDFIs will manage the disaster recovery funding.
Clearinghouse CDFI will finance property acquisition or single-family home development by nonprofit partners. The organization will also provide capital to small businesses for rebuilding expenses exceeding insurance proceeds and operational resumption funding.
Genesis LA makes loans supporting homeownership, economic development and nonprofit facilities in Altadena and Pasadena. The organization is working with Altadena stakeholders to acquire vacant lots for redevelopment, coordinating with nonprofit developers and local residents to rebuild multiple homes simultaneously and help businesses rebuild storefronts.
Pacific Community Ventures' RESTORE LA Fund offers no-fee loans of $10,000 to $100,000 at 3% interest for small businesses. Funding can replace damaged property or equipment, support worker retention or payroll expenses, and address other recovery needs. Businesses receive pro bono technical assistance and access to PCV's climate resilience lending program.
"Having extensive experience supporting clients and communities through various disasters over the years, Bank of America is uniquely positioned with the expertise, capital and connections to support LA's next chapter," said Raul Anaya, head of Local Markets Strategy and president of Bank of America Los Angeles.
As the nation's largest private CDFI investor with $2 billion in loans, deposits, capital grants and equity investments across more than 250 CDFI partners, Bank of America previously allocated capital for disaster recovery in Asheville following Hurricane Helene and Texas Hill Country after flooding.
The investment builds on the company's ongoing relief efforts, including its recently announced Rebuild Solution for qualifying mortgage clients. The bank will rebuild destroyed financial centers in Altadena and Pacific Palisades.
Bank of America has distributed $3.5 million in philanthropic grants to local nonprofits for fire and business support, plus thought leadership and employee volunteerism to foundations and nonprofits.
More information is available at https://about.bankofamerica.com/en/making-an-impact/la-rebuild.
Edited by SMDP Staff