U.S. Rep. Vicente Gonzalez announced Friday that five South Texas financial institutions will receive more than $440 million to help address poverty in the region, which is widely known as among the poorest in the state.
The U.S. Department of the Treasury awarded $445,666,000 from the Emergency Capital Investment Program to the institutions for what Treasury Secretary Janet L. Yellen called “essential funds” for “underserved communities.”
Gonzalez said in a news release that AOB Ventures will receive $18.3 million, Lone Star National Bank is being funded $215 million, MNB Ventures is getting $108 million, Rio Financial Services is receiving $103 million, and the South Texas Federal Credit Union is getting $500,000.
For Gonzalez, the overall goal of the investment is to prevent the continuous “cycle of poverty.”
He hopes that the investment will be used as loans to assist low-income and minority borrowers and underserved small businesses, and to the development and preservation of affordable housing.
Gonzalez also said he hopes the investment will assist in community development projects.
“These essential funds provide opportunity to underserved communities across the country, helping them to regain their footing following the pandemic and strengthening their resilience against future shocks,” Yellen said in the release. “Today’s announcement is a significant step toward expanding access to the capital and services to rebuild and fuel long-term economic growth.”
