The Nevada Governor’s Office of Economic Development (GOED) is launching a program to provide loans to new businesses and early-stage companies.
The Nevada Community Development Financial Institution (CDFI) was allocated funding from the $6 million attorney general’s office 2019 T-Mobile and Sprint settlement, according to a press release from the GOED.
“The main goal of the project is to seed a home-grown Nevada Community Development Financial Institution with a direct focus on minority small-business financing,” Gov. Steve Sisolak (D-Nev.) said in the press release. “Through its revolving loan program, it will help grow businesses in low-income communities, with a focus on minority- and women-owned businesses — areas that have been historically overlooked by traditional financial institutions but are critically important to growing and diversifying Nevada’s economy.”
The direct-lending program will prioritize funding for minority-owned businesses in low-income communities.
“CDFIs can be the unsung heroes and champions to the residents and businesses of low-income communities and communities of color,” Karsten Heise, senior director of strategic programs and innovation of the GOED, said in the press release. “According to the Opportunity Finance Network, CDFI borrowers are 84% low-income, 60% of color, and 50% women. CDFIs are vital. In addition to their commitment to deliver affordable credit and financial services to small businesses and communities underserved by mainstream commercial banks and lenders, they also provide much needed technical assistance services.”
The Nevada Legislative Interim Finance Committee approved the GOED’s request for funding in early April.
