UMB receives $1.8 million from U.S. Treasury, 52 other financial institutions in state
Published 2:33 pm Thursday, June 17, 2021
NATCHEZ — The United Mississippi Bank in Natchez was among 52 financial institutions in the State of Mississippi to each receive a $1.8 million grant from U.S. Treasury Department.
The department awarded a total of $94.9 million to financial institutions throughout the state as part of a COVID-19 relief package provided through the Treasury Department’s Community Development Financial Institutions (CDFI) Rapid Response Program (RRP).
The CDFI RRP grants are funded through the FY2021 Consolidated Appropriations Act, which was signed into law in December in response to the economic hardships created by the COVID-19 pandemic.
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“The purpose of this grant is to get capitol into banks that serve rural and low to moderate income areas. We will use it to lend and offer other financial products in the area that we serve,” UMB CEO Adrian Sandel said. For UMB customers, that means more access to loans and products that the bank offers, he said.
“This will help areas that were adversely affected (by COVID-19) to rebuild as we’re starting to get back on track. … It is a wonderful thing.”
Sen. Cindy Hyde-Smith, R-Miss., of Brookhaven, made the announcement of the awards Tuesday as the ranking member of the Senate Financial Services and General Government Appropriations Subcommittee.
“The Rapid Response Program will allow these financial institutions in Mississippi to withstand the stresses of the pandemic and provide flexibility to support more private-sector investments in rural and underserved communities,” Hyde-Smith said. “In real terms, it means their having more capital on hand to help businesses and community facilities remain viable as we rebuild after a very difficult economic year.”
The $94,965,780 awarded represents a $1,826,265 grant to each of the 52 CDFI RRP grantees in Mississippi. A CDFI can be a bank, credit union, loan fund or venture capital fund.
In addition to United Mississippi Bank, Mississippi CDFI RRP award recipients also include the Bank of Franklin in Meadville, Copiah Bank in Hazlehurst, First Bank and Pike National Bank in McComb and Bank of Brookhaven.