The Image Works The Recovery Act is helping to stimulate construction and jobs in communities across the nation.

Barry Wides, Deputy Comptroller for Community Affairs, Office of the Comptroller of the Currency (OCC)

With the American Recovery and Reinvestment Act of 2009 (Recovery Act) having marked its first anniversary and the economy regaining its footing, banks face unique opportunities to help return the economy to long-term growth, to serve their communities, and to help themselves.

Recovery Act funds are beginning to be put to work by state, local, and community groups to revitalize struggling neighborhoods, cities, and states. Now, banks must step up and ensure that these critical community efforts are successful.

This issue of Community Developments Investments serves as a guide to banks interested in supporting critical community efforts. This guide will help banks understand how Recovery Act funds are being disbursed and how they are being used in community development. It highlights some of the programs created, expanded, and funded by the Recovery Act to promote small business financing and to stimulate housing and economic development. Individual articles highlight programs and opportunities in the areas of economic development, housing finance, and bond investments.

Banks can partner with local groups engaged in these programs by providing lending, investing, and technical assistance. They can invest in Build America Bonds that support efforts to rebuild national highways, city roads, and neighborhood infrastructure. They can work with local groups to rehabilitate distressed and foreclosed properties. They can finance low-income and affordable-housing developments. They can extend lines of credit to small businesses to finance payrolls and expand. Additionally, banks can partner with community development financial institutions, and in return, enter niche markets, cultivate future customers, and deliver mainstream and alternative financial products and services to underserved communities and banks that support community development efforts may receive Community Reinvestment Act (CRA) consideration.

As the Recovery Act funding for popular programs, like the SBA 7(a) and 504 programs, are exhausted, several temporary extensions have been approved.  These and similar efforts  are expected to continue to support Recovery Act initiatives as the economy stabilizes and grows through 2010 and 2011.

This guide will inform banks interested in lending, investment, and community development opportunities created by the Recovery Act. After reading these articles, banks interested in learning more about these opportunities and their potential CRA impact may contact the OCC's District Community Affairs Officers.