Posted by:
Steve Dubb
FY08 allocation is $94M, a 70% increase
As noted by the Opportunity Finance Network, a trade association of community development loan funds, buried in the $555 billion omnibus spending bill signed by President Bush on December 27th was a provision that increases funding for the CDFI Fund to $94 million from last year’s total of $55.5 million. This marks an important turnabout in fortunes for community development financial institutions and, as the following chart from the Coalition of Community Development Financial Institutions shows, is the highest single year appropriation for the CDFI Fund since 2001.
The CDFI Fund, operated by the U.S. Department of Treasury, has, since its formation in 1994, played an important role in helping expanding the capacity of community development financial institutions to support community wealth building efforts through loans and equity investment. In 1995, community development financial institutions — which include community development banks, credit unions, loan funds, venture funds, and micro-enterprise funds — had only about $4 billion in assets. Today, that amount has increased to an estimated $25 billion.
Representative José Serrano (D-NY) and Senator Richard Durbin (D-IL) helped lead the effort to restore funding to the CDFI Fund. Each chair the Appropriations Subcommittee for Financial Services and General Government in their respective chambers. The money allocated to the CDFI Fund will help support increased financial assistance and technical assistance grants for community development financial institutions, as well as funding for the Fund’s Bank Enterprise Award program, and a CDFI Fund-administered program that assists community development financial institutions that specialize in serving Native American communities.