Three local banks have been selected as part of 52 financial institutions throughout Mississippi to receive a total of $94.9 million from the U.S. Treasury Department to use only as capital to spur more private-sector investments in local communities. The announcement was made Wednesday, June 16, by the office of U.S. Senator Cindy Hyde-Smith (R-Miss.)
Sycamore Bank, with headquarters in Senatobia, along with Guaranty Bank & Trust, with a main office location in Belzoni, and First Security Bank with a head office located in Batesville were all among the financial institutions awarded the funds.
The funds provided are COVID-19 relief monies through the Treasury Departments Community Development Financial Institutions (CDIF) Rapid Response Program (RRP). The grants are funded through the FY2021 Consolidated Appropriations Act, which was signed into law in December 2020.
“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,” stated Hyde-Smith of the program.
The funds differ from the payments directly made to American citizens through the CARES Act, in that the grant is awarded only to financial institutions with strict guidelines on how the funds can be used to invest back into the community.
“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,” explained Hyde-Smith, the ranking member of the Senate Financial Services and General Government Appropriations Subcommittee.
The $94,965,780 awarded represents a $1,826,265 grant to each of the 52 CDFI RRP grantees in Mississippi.
Jay Tindall, Chairman and CEO of Sycamore Bank, the only institute receiving funds with its charter location in Senatobia and Tate County commented on the grant.
"Sycamore Bank is proud to receive an award from the US Treasury Departments Rapid Response Program (RRP). Sycamore Bank has a long-held designation as being a CDFI (Community Development Financial Institution). This award will enable Sycamore Bank to continue to make investments in rural and underserved communities by enhancing our capital position. This is extremely important as the communities we serve continue to reopen post pandemic. Sycamore Bank is proud to be one of 52 grantees of this award in Mississippi."
A CDFI can be a bank, credit union, loan fund, or venture capital fund.
