A bipartisan group of senators introduced an ABA-backed bill to create a community development financial institutions tax credit for private sector investors that make equity, equity-equivalent investments or long-term patient capital available to CDFIs.
The trade groups asked for $500 million for the CDFI Fund, which includes a $50 million allocation for the Bank Enterprise Award Program.
ABA supports the proposed changes’ goals, but said without refinement they would have unintended consequences, particularly in rural areas.