Noting the pivotal role that community development financial institutions play in stabilizing local economies and creating jobs in low- and moderate-income communities, the American Bankers Association and several industry trade groups urged lawmakers to include funding for the Treasury Department’s Community Development Financial Institutions Fund in the next economic stimulus package. The groups requested $1 billion in funding for the fund.
“The $1 billion request represents a modest 0.47% of total CDFI industry assets,” the groups wrote. “This capital, however, is critically important at this time. The monies will leverage up to 12 times ($12 billion) the $1 billion in private capital that will be channeled to local businesses, nonprofits, and others to help recover the devastating effects of the recession and begin rebuilding.”