ABA, Trade Groups Urge Continued Bipartisan Support for CDFI Funding

The American Bankers Association and four other trade groups today urged House and Senate appropriations leaders to continue bipartisan support of at least $360 million in funding for the Community Development Financial Institutions Fund in fiscal year 2022, with $42 million allocated for the Bank Enterprise Award Program.

The groups noted that the $360 million in funding represents a necessary increase in funding and “is justified by the significant demand, over subscription of the programs, and dire need of the nation as we continue to suffer from the COVID-19 health and economic crisis.”

They added that demand for the BEA program outstrips the current funding and that 161 applications were received in 2021 requesting awards of more than $288 million, more than double the amount requested in the last round and more than 11 times the $26 million available.

Separately, the Treasury Department opened the 2022 fiscal year funding round today for the CDFI program and the Native American CDFI assistance program, which help provide affordable financing to low-income communities and populations that lack access to credit. For fiscal year 2022, pending final congressional appropriations, the CDFI Fund will make up to $204 million in awards.