This week, June 8-14 2020, is the CDFI Week of Action. The purpose of this week is to raise awareness and resources for CDFIs in upcoming COVID-19 related federal legislation.
The House-passed Health and Economic Recovery Omnibus Emergency Solutions, or HEROES Act (H.R. 6800), proposes $1 billion in funding for the CDFI Fund. We want the country to know the important role CDFIs play in our economy and why the federal government would be smart to invest $1 billion in funding for CDFIs like SBAC.
What is a CDFI? In short, CDFIs are mission‐driven ﬁnancial institutions that deliver aﬀordable credit, capital, and ﬁnancial services to residents and businesses in minority and economically distressed communities. This helpful video explains:
Here are a few more reasons why CDFIs are so important:
- There are over 1,100 certified CDFIs working across rural and urban areas in all 50 states.
- Since 1994, the CDFI Fund has awarded more than $3.4 billion on a competitive basis to CDFIs
- The $1 billion in the HEROES Act for CDFIs would provide much needed access to capital for struggling rural and urban communities now and in the future. In addition, it will allow CDFIs to continue to ﬁnance Paycheck Protection Program (PPP) loans.
- CDFIs emerged in response to the fact that many urban neighborhoods and rural areas, particularly those with high rates of poverty and unemployment, are underserved by traditional financial institutions.
- By leveraging over $12 in private capital to every $1 in federal support, over $12 in private capital to every $1 in federal support, CDFIs are ﬁlling the yawning credit gap encountered in many communities, creating jobs, improving housing and community facilities and creating economic opportunity.
- The ultimate goal is to bring CDFI customers into the mainstream economy as bank customers, home owners and/or entrepreneurs.
Source: CDFI Coalition
# HEROESAct #CDFIsInvest #COVID19 #KeepCDFIsStrong.