Three community development organizations in Minnesota have been selected to receive grants aimed at enhancing agriculture-focused financial services. The Minnesota Department of Agriculture (MDA) has awarded a total of $270,000 through its new Community Development Financial Institution (CDFI) Technical Assistance Grant.
The recipients include African Economic Development Solutions, which will receive $80,000. This funding is intended for staff training on farm business resources, establishing partnerships with agriculture-related organizations, and creating new loan products and policies to support farmers.
Hmong American Partnership has been allocated $90,000. This grant will be used to increase staff expertise in agricultural financial services and provide farmers with loan readiness workshops and technical assistance. Additionally, the funds will help develop tailored loan products to meet the specific financial needs of farmers.
The Latino Economic Development Center (LEDC) is set to receive $100,000. These funds will bolster their agricultural lending program by developing a new ag loan policy manual, establishing a dedicated ag loan fund, improving technology and processes for faster capital deployment to farmers, and offering professional development for LEDC staff.
All three awardees are certified CDFIs that serve or plan to serve farmers in Minnesota. They have participated in at least one U.S. Department of Agriculture grant or loan program. A certified CDFI is defined as a bank, credit union, microloan fund, or venture capital provider that has completed the certification process with the U.S. Department of the Treasury’s CDFI Fund.
The grants focus on two main areas: providing technical assistance from CDFIs to farmers—such as helping them with loan readiness or expanding outreach efforts—and increasing the capacity of CDFIs themselves to better serve farmers by developing their agriculture lending programs or enhancing internal knowledge and processes.
