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SBC discusses new bipartisan bill, strengthening CDFIs at Hearing
Yesterday the Senate Banking Committee held a hearing on how Community Development Financial Institutions (CDFIs) support underserved communities. The committee mainly discussed strengthening CDFIs in addition to urging Congress to work together to address regulatory changes that will benefit the institutions.
In her opening statement, Housing, Transportation, and Community Development Subcommittee Chairwoman Tina Smith, D-Minn., spoke on the good work that CDFI’s do and the value they bring, highlighting that the loans they were able to provide to low-income areas other FIs couldn’t help during the pandemic.
In addition, Chairwoman Smith mentioned the bipartisan CDFI Bond Guarantee Program Improvement Act that she and Ranking Member Mike Rounds, R-S.D., introduced yesterday. The bill aims to jumpstart economic development in economically distressed areas and address disparities in access to capital for underserved communities by strengthening and expanding CDFIs.
Prior to the hearing, NAFCU Vice President of Legislative Affairs Brad Thaler wrote a letter to Chairwoman Smith and Ranking Member Rounds providing insights on how credit union CDFIs are working to serve their communities.
NAFCU will continue to urge Congress to fully fund the CDFI and CDRLF, as they promote access to capital and local economic growth in low-income communities.