Bank of America Allocates $12 Million for Hurricane Recovery in Western North Carolina

In the wake of Hurricane Helene, which wreaked havoc across Western North Carolina, Bank of America has stepped up to aid local residents and small businesses by announcing a significant commitment of $12 million in zero-interest loans. This funding aims to facilitate housing restoration and provide essential support to entrepreneurs struggling in the aftermath of this natural disaster.

Key Initiatives from Bank of America

The funds will be distributed through Community Development Financial Institutions (CDFIs) that actively engage in the region's recovery efforts. Specifically, the funding strategy includes:
1. $8 Million for Self-Help Ventures Fund (SHVF): This investment will allow SHVF to deliver flexible home loans to affected families through its credit union network and partnerships with other home lenders. SHVF has held a longstanding presence within the community for 34 years and has been pivotal in offering affordable housing solutions to its residents.

2. $2 Million for Mountain BizWorks: Aimed at supporting small businesses, Mountain BizWorks will deploy these funds to offer low-interest loans, with a unique structure that includes no principal repayments during the initial year. This initiative is part of their WNC Strong Helene Business Recovery Fund, which has previously provided rapid recovery loans to over 700 businesses impacted by the hurricane.

3. $2 Million for Partner Community Capital: Focused primarily on aiding small businesses, Partner Community Capital will provide zero-percent interest loans for the first year, further easing the financial burden on local enterprises striving to regain stability.

David Dowd, president of Bank of America Asheville, expressed, "As we continue our long-term recovery efforts, these disaster loan funds will significantly impact the lives of families and business owners. This is part of Bank of America's commitment to keeping Western North Carolina strong. We encourage everyone to support our regional comeback and enjoy the beauty of our mountains."

Additional Support from Bank of America

This commitment is not Bank of America's first step in aiding the affected regions. Earlier, the bank donated $1 million toward immediate relief efforts, which included $200,000 allocated to the Asheville Area Chamber of Commerce Foundation and Manna Food Bank. Furthermore, volunteers from the bank have collectively dedicated thousands of hours to assist in recovery processes. Within the few weeks following the hurricane, nearly 500 Bank of America employees contributed by conducting over 5,000 damage assessments in collaboration with the American Red Cross.

In addition to financial contributions, Bank of America volunteers have also worked closely with Habitat for Humanity, helping to build tiny homes and repair those that have been damaged or destroyed.

Role of CDFIs in Community Recovery

The CDFIs involved have been integral to the rebuilding efforts in Western North Carolina. Self-Help Ventures Fund aims to create economic opportunities for all, and over its decades-long presence, it has significantly impacted the local housing market. Mountain BizWorks is dedicated to fostering a vibrant entrepreneurial ecosystem, while Partner Community Capital enriches small businesses by offering support and advisory services to ensure their sustainable growth in the market.

Bank of America, recognized as the largest private CDFI investor in the United States, boasts over $2 billion in loans, deposits, and grants across more than 250 CDFI partners. This collaboration underscores the bank's commitment to reinforcing families and communities nationwide.

Conclusion

As Western North Carolina continues to grapple with the aftermath of Hurricane Helene, initiatives like Bank of America's funding underscore the critical role of supportive financial resources in recovery. By working hand-in-hand with local organizations, both community resilience and economic revitalization are fostered, paving the way for a hopeful future for those impacted by this disaster.