JSM Financial: Citigroup Inc. launches $200 million small business lending fund.

May 6, 2010 - PRLog -- Citigroup Inc. recently announced the launch of its new $200 million Communities at Work Fund aimed at helping fuel small business lending in low wealth and low-income U.S. communities, JSM Financial has learned.

The latest Citi fund will provide financing to both non-profit and profit for Community Development Financial Institution (CDFI) Loan Funds which will in turn lend to local small businesses in lower income communities.

"Citi's investment in the Communities at Work Fund underscores our commitment to the economic life of the communities we serve and to the U.S. economic recovery," JSM Financial believes the Citigroup CEO Vikram Pandit was quoted as saying. "We recognize that too many small businesses, microenterprises, charter schools and community service institutions simply do not have access to credit, yet they are engines for economic growth. The Communities at Work Fund will leverage the expertise of the leaders in the Community Development finance sector and provide much-needed financing in these markets."

CDFI Loan Funs traditionally serve as effective structures for the creation of economic opportunities in communities not sufficiently serviced by conventional financial institutions while also providing positive financial results. In 2008 alone CDFI Loan Funds supplied $1.4 billion in loans and have loaned a cumulative $15.9 billion to over 48.500 businesse,s JSM Financial sources indicate.

"Citi's investment in the Communities at Work Fund is driven by our commitment to providing funding to small businesses and microenterprises, which are a primary source of job creation and opportunity for underserved communities," JSM believes ContiGroup’s Bob Annibale, Global Director of Citi Microfinance and Community Development said of the launch of the new fund. "This is not philanthropy, but an investment in the CDFI sector, which is rooted in local communities and provides innovative financing for community development and economic growth."

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