Today, Amalgamated Bank, a subsidiary of Amalgamated Financial Corp. (Nasdaq: AMAL), announced a five-million-dollar loan to Finanta, a 33-year-old community development financial institution (CDFI) advancing economic opportunities for individuals, families and entrepreneurs. This infusion of funds will expand access to capital for affordable housing developers, healthy food providers in food deserts, community development projects, childcare and education providers, healthcare providers, small businesses and entrepreneurs in Pennsylvania, New Jersey, and Delaware.
“Finanta’s work to strengthen communities is aligned with Amalgamated’s core values and mission,” said Sam Brown, Chief Banking Officer at Amalgamated Bank. “We’re thrilled for this opportunity to further demonstrate our commitment to the critical work of CDFIs, expanding access to health care and supporting community builders that create pathways to education, healthy food, small business and affordable housing.”
CDFIs like Finanta rely on capital from organizations, such as Amalgamated Bank, to make accessible, low-cost funding available to clients and for projects that may not qualify for traditional financing.
Every time a Finanta client makes a loan payment, those dollars are reinvested in the community as it makes new loans. As a result, investments and contributions in its loan fund – like this one from Amalgamated – have a perpetual ripple effect in the community as dollars are reinvested over and over again
“Loans like these expand access to funds that support long-term financial stability for hard-working families,” said Daniel Betancourt, CEO of Finanta. “We are grateful to Amalgamated for partnering with us so we can continue to offer access to capital in communities that need it the most.”
Key Details
Amalgamated Bank, a subsidiary of Amalgamated Financial Corp. (Nasdaq: AMAL).
Finanta, a 33-year-old nonprofit CDFI that provides loans and financial services aimed at advancing economic opportunity in underserved communities.
Impact & Context
The loan aligns with Amalgamated Bank’s mission-driven approach to banking and its focus on socially responsible finance. Finanta’s work involves reinvesting loan repayments back into the community, meaning this capital can have a multiplier effect over time by supporting new loans and initiatives.
Why This Matters
The loan aligns with Amalgamated Bank’s mission and values around supporting community development and inclusive economic growth.
CDFIs like Finanta reinvest repayments into new loans, creating a repeating “ripple effect” that circulates capital back into underserved communities over time.
Amalgamated’s Chief Banking Officer said this partnership “demonstrates our commitment to the critical work of CDFIs” and expanding access to essential services and financial stability for families and businesses.