June 29, 2009

The U.S. Treasury Department announced on June 29, 2009, a $2 million grant to the Montana Community Development Corporation (MCDC), of Missoula, for statewide business loans. Amidst stiff national competition, MCDC received the top dollar amount awarded for its loan fund.

The Community Development Financial Institutions (CDFI) Fund provides business development money to economically distressed communities.  This year 182 applicants submitted $260 million in grant and loan requests.  The Fund provided $90 million to 59 different community development financial institutions nationwide.

“MCDC’s proven track-record of raising private philanthropic donations gave them an edge over other applicants”, says Rosalie Cates, President of MCDC. With over $2.2 million in private donations already in its loan fund, MCDC was well positioned to win the award.  “Private donations to MCDC’s loan fund have created a community chest that works to attract federal grant money, which creates more wealth for all residents,” Cates said.  

The $2 million CDFI financial assistance award will go directly into MCDC’s loan fund which is used to loan money to those who may not qualify for a traditional business loan but have a viable business that will provide income for themselves and job opportunities in their communities.  The majority of MCDC clients include low-income people or those that live in low-income places, women or minority-owned businesses. Cates says that while about twenty or so Montana businesses will benefit directly from this new money, the $2 million injected into MCDC’s loan fund now will evolve into permanent community assets dedicated to building opportunity in our region for those that need it most.  Cates:  "MCDC is honored to receive the CDFI fund award meant to promote small business on main street and help businesses and communities across Montana withstand these difficult times."