The proposed Budget for FY18 eliminates funding for the Community Development Financial Institution (CDFI) Fund. The CDFI Fund, which has always garnered bipartisan support, received $248 million in funding for FY 2017. This funding provides access to capital to low-income households, gives financial support to small business, and advances critical community development projects.
“Access to affordable financial products and services is a staple of economically vibrant communities,” notes Initiative President and CEO Tara Kenchen. “The CDFI Fund ensures that federal resources are invested in organizations committed to serving low-income and underserved people and communities.”
Kenchen’s remarks echo those of Opportunity Finance Network President and CEO Lisa Mensah who released a statement yesterday condemning the administration’s decision to eliminate funding for CDFI Fund Programs. “The CDFI Fund is the largest single source of equity for CDFIs and has been instrumental in spurring economic growth in the many rural, urban, and Native communities that lack adequate access to capital,” said Mensah. “Eliminating CDFI Fund funding in FY 2018 will result in fewer investment dollars flowing into communities that are in most need of responsible loans and financial services.”
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