AltCap Receives First CDFI Financial Assistance Award To Increase Small Business Lending

(Kansas City, MO) September 20, 2017 - The U.S. Department of the Treasury’s CDFI Fund announced this week that AltCap, a Kansas City-based Community Development Financial Institution (CDFI), has received a Financial Assistance award in the amount of $686,500. This award will provide loan capital to expand AltCap's range of innovative financial products that support high-impact, small business investments in low- to moderate-income communities.

"We are thrilled and grateful to the CDFI Fund for this award," said Ruben Alonso, President of AltCap. "This award brings needed small business loan capital to Kansas City and supports our efforts to increase access to capital for underserved communities and small businesses."

Since 2008, AltCap has worked to reduce economic disparities in Kansas City, Missouri by providing access to alternative capital in the form of New Markets Tax Credits (NMTC) and targeted microloan funds for job creating small businesses and catalytic real estate development projects. The Financial Assistance award will be used specifically to support AltCap's growing micro and small business loan activity.

As the only Kansas City-based, mission-driven, and minority-controlled CDFI Loan Fund, AltCap has focused its capital deployment in communities and to small businesses overlooked and underserved by traditional financial institutions. From its ARTCap Microloan Fund for Artists to its minority and women contractors loan fund, AltCap provides a critical source of capital to job creating small businesses that are generating significant economic impacts in communities throughout Kansas City. AltCap also offers economic empowerment programs to support its small business borrowers, including the WIBO 16-Week Workshop: How to Build a Growing Profitable Business, the AltCap Your Biz Competition, and one-on-one technical assistance an small business development services.

The CDFI Fund, a program of the U.S. Department of the Treasury, was created for the purpose of promoting economic revitalization and community development by investing in and building the capacity of CDFIs, like AltCap, to serve low-income people and communities lacking adequate access to affordable financial products and services. The Financial Assistance Award is intended to help CDFIs sustain and expand their financial products and services and can be used for lending capital, loan loss reserves, capital reserves, financial services, and development services. This year, the CDFI Fund has provided $171.1 million in Financial Assistance and Technical Assistance awards to organizations nationwide. This is AltCap's first Financial Assistance award. AltCap has received $158 million in NMTC, another program of the CDFI Fund, since 2008.

For more information on AltCap, contact Ruben Alonso at ruben@alt-cap.org or (816) 216-1851.

Megan CrookComment