ABA, Groups Urge No Cuts to CDFI Fund

The American Bankers Association, joined by the Independent Community Bankers of America, Community Development Bankers Association and National Bankers Association, today urged congressional leaders to maintain strong funding levels for the Community Development Financial Institutions Fund and its Bank Enterprise Award program in the remainder of fiscal year 2017 as well as FY 2018.

Specifically, the groups — which represent a range of community banks, CDFIs and minority-owned or -led banks — sought $250 million for the CDFI Fund in each fiscal year, including $23 million for the BEA program in FY 2017 and $35 million for it in FY 2018.

“The justification for increasing the BEA program allocation within the CDFI Fund’s overall appropriations is based on strong demand, high private sector leverage, and impact,” the groups said, noting that the dollar amounts of BEA requests has doubled since 2012 while the allocated funds have risen by only 5 percent. “Since 1996, the BEA Program has made $429 million in awards and helped facilitate billions in new investments that benefit the most difficult to serve markets.”