New Federal Action to Support CDFIs

In recent weeks, announcements from the White House and Congress have spotlighted important new developments for the CDFI industry. Among other significant milestones, the following initiatives and commitments are in process at the federal level:

• A historic new public-private partnership announced by Vice President Kamala Harris to expand investments in CDFIs: The new Economic Opportunity Coalition will make historic levels of investment in under-resourced communities and the CDFIs that support them. Working Solutions applauds the Biden administration for launching this coalition.
  
  As VP Harris shared in her remarks, "Community lenders are uniquely positioned to fill the gaps that traditional banks either cannot or will not address...Today, over 20 private sector organizations…are joining with our administration to take action to increase opportunity and to build wealth in historically underserved communities...to support entrepreneurship, in particular for women-owned and minority-owned businesses; and to expand access to financial services."

• The creation of a new, federal bipartisan CDFI Senate Caucus: U.S. Senators Mark Warner (D-VA) and Mike Crapo (R-ID) announced the creation of the Senate Community Development Finance Caucus (CDFC), a bipartisan initiative to support the work of CDFIs to lend in low- and moderate-income communities.

• The opportunity for a major overhaul of the Community Reinvestment Act (CRA) for the first time since its creation 45 years ago, which demonstrates, at a national level, the transition and growth of the CDFI community from a movement to a formidable industry.

Working Solutions is proud to be a certified CDFI during this time of great momentum and change, and will continue to advocate for policies to support CDFIs and small business at the federal and state level.