A proposed Senate bill would strengthen the Community Development Financial Institutions Fund through added transparency, the expansion of responsible access to capital and the improvement of federal programs that support CDFIs, the American Bankers Association said in a letter to the bill’s sponsors.
The Access to Fair Financing for Opportunity and Resilient Development, or AFFORD, Act (S. 3940) by Sens. Steve Daines (R-Mont.) and Mark Warner (D-Va.) combines four bills, each aimed at strengthening the CDFI ecosystem. Among other things, the bill would require the Treasury secretary to testify before Congress annually about the CDFI Fund, extend authorization for the Bond Guarantee Program and direct dividends from the Emergency Capital Investment Program to support the Section 113 liquidity enhancement pilot program.
“Community development financial institutions play a critical role in expanding economic opportunity in underserved rural, urban and Native communities across the country,” ABA said. “The measures included in this package will enhance oversight, improve the effectiveness of existing programs, and help ensure that CDFIs have the tools necessary to support sustainable community development.”
