Rep. Clarke Introduces Resolution Recognizing the Importance of Community Development Financial Institutions
Today, Congresswoman Yvette D. Clarke introduced a resolution that recognizes the 15th anniversary of the establishment of the Community Development Financial Institutions (CDFI) Fund and reaffirms the importance of its mission of economic and community development. The CDFI Fund, created by the Riegle Community Development and Regulatory Improvement Act of 1994, is primarily devoted to expanding economic opportunity for those in underserved areas.
“This resolution acknowledges the important work done by CDFIs in our communities,” said Rep. Yvette Clarke, “According to a recently released FDIC study, nearly 30 million Americans currently go without access to structured accounts or lending opportunities from banks or credit unions. Given this data, it is appropriate to shine a light on this invaluable CDFI Fund which supports almost 800 financial institutions across the nation.”
The resolution would:
- recognize the 15th anniversary of the historic establishment of the Community Development Financial Institutions Fund;
- acknowledge that the purpose of the Fund is to promote economic revitalization in underserved rural, urban, and Native American communities;
- reaffirm the importance of CDFI investments in and assistance to financial institutions which conduct economic and community development and
- assert the relevance of the CDFI Fund as an indispensable Agency engaged in the business of promoting both job creation and retention, as well as economic growth.
CDFIs provide loans, investments, training, technical assistance, and basic financial services. CDFI customers are 70 percent low income, 60 percent minority and 52 percent women. Since its creation, the CDFI Fund has awarded $1.13 billion to CDFIs, community development organizations, and financial institutions through the CDFI Program, the Bank Enterprise Award (BEA) Program, and the Native Initiatives. In addition, the Fund has allocated $26 billion in tax credit authority to Community Development Entities (CDEs) through the New Markets Tax Credit Program. As of September 30, 2009, there were 798 certified CDFIs throughout the country.
“Many of our neighborhoods are hurting because there are not enough financial institutions providing affordable credit,” Rep. Clarke continued, “CDFIs help fill this gap, and I look forward to working with my colleagues to explore how we can be more supportive to the CDFI Fund.”