SELMA, Ala. – Aug. 17, 2020 – The Regions Foundation, a nonprofit initiative of Regions Bank, on Monday announced a commitment of $300,000 that will help rural Alabama cities and counties facing a growing number of costs associated with COVID-19.
“We are focused on supporting the economic strength of our communities, and that focus has not changed during the pandemic. Instead, it has grown,” said Marta Self, executive director of the Regions Foundation. “Each day, the Regions Foundation is working with community partners who are on the front lines with underserved cities and counties that are hit hard by the virus. The result of the financial commitment we are announcing today is that more Alabama communities – and, in turn, more people – will have resources they need.”
The financial commitment will support two nonprofits – the Hope Enterprise Corporation and the Black Belt Community Foundation (BBCF).
Together, Hope Enterprise Corporation and the BBCF are administering a line of credit for cities and counties in Alabama’s Black Belt region. The line of credit provides up-front financing to help municipalities and counties cover millions of dollars’ worth of pandemic-related expenses. The municipalities and counties can then seek reimbursement for those expenses through federal dollars made available by the Coronavirus Aid, Relief, and Economic Security (CARES) Act and Alabama’s Senate Bill 161.
Named for the region’s dark, fertile topsoil, the Alabama Black Belt is a stretch of counties across western, central and southern portions of the state. Much of the region has historically been underserved and has struggled with issues of poverty and a lack of jobs. Many communities within the area have been especially impacted by the novel coronavirus.
“We know that not every community has the capacity to access CARES funds made available by reimbursement,” said Felecia Lucky, president of the BBCF. “To qualify for help, a community must spend its funds to be reimbursed. If those funds don’t exist, then residents are at a disadvantage in the fight against COVID.”
The Regions Foundation’s financial commitment to Hope Enterprise Corporation and the BBCF will come in two forms. First, a $150,000 program-related investment (or PRI) from the foundation will provide up-front lending capital for the project. Second, a $150,000 grant will be available to support a loss-reserve pool that will help cover any potential losses if some cities or counties are unable to repay their line of credit.
“This project will facilitate access to critical CARES Act funding that will enable cities and counties to advance health, safety and economic opportunity in communities and for people who absolutely need it the most,” said Kendra Key, senior vice president of Community and Economic Development for Hope Enterprise Corporation. “Hope Enterprise Corporation is honored to join the Black Belt Community Foundation and other critical community partners, like the Regions Foundation, in assisting communities in the fight to mitigate and recover stronger from COVID-19.”
Senators Malika Sanders-Fortier of Selma and Bobby Singleton of Greensboro worked closely with the Black Belt Community Foundation to form a COVID-19 response task force that is connecting needs with resources.
“This is an initiative that shows the results we can achieve when we combine resources and energy toward one common goal,” Sen. Sanders-Fortier said. “What Hope Enterprise Corporation and the Black Belt Community Foundation are providing is about access and opportunities. That is, access to critical funding – and opportunities to recover and move forward after a very difficult time. We appreciate all the organizations that are coming together to make this a success.”
“This initiative will assist financially strapped counties and cities in the Black Belt that don’t have the financial wherewithal to spend money up front in order to access the funds they need to fight COVID in their communities,” Sen. Singleton added. “But for this collaboration we have brought together to create this fund, many poverty-stricken communities that are struggling would not be able to access critical CARES Act funding.”
Alabama’s Senate Bill 161, which set aside a portion of federal CARES Act funding for cities and counties impacted by the pandemic, was sponsored by Sen. Greg Albritton of Atmore.
“Throughout the pandemic, we have consistently been reminded that we are always stronger when we stand together to address the needs of our communities,” Sen. Albritton said. “The dedication of the Black Belt Community Foundation, the Hope Enterprise Corporation, and financial supporters such as the Regions Foundation, means more communities will have access to essential resources as they address the impacts of the pandemic. We appreciate the collaboration of community partners working hand-in-hand to address urgent needs and bring about positive solutions for cities and counties throughout the region.”
Since this spring, the Regions Foundation and Regions Bank have collectively allocated more than $3 million to COVID-19 recovery needs, including a previous grant of $100,000 to Hope Enterprise Corporation. Additional funding will be issued to nonprofits and other organizations in the coming months as part of a broader, $5 million coronavirus-recovery commitment announced by Regions earlier this year.
About Regions Foundation
The Alabama-based Regions Foundation supports community investments that positively impact the areas served by Regions Bank. The Foundation engages in a grantmaking program focused on priorities including economic and community development; education and workforce readiness; and financial wellness. The Foundation is a nonprofit 501(c)(3) corporation funded primarily through contributions from Regions Bank.
About Regions Financial Corporation
Regions Financial Corporation (NYSE:RF), with $144 billion in assets, is a member of the S&P 500 Index and is one of the nation’s largest full-service providers of consumer and commercial banking, wealth management, and mortgage products and services. Regions serves customers across the South, Midwest and Texas, and through its subsidiary, Regions Bank, operates approximately 1,400 banking offices and 2,000 ATMs. Regions Bank is an Equal Housing Lender and Member FDIC. Additional information about Regions and its full line of products and services can be found at www.regions.com.