The US Office of Management and Budget announced the release of the remaining FY2025 Community Development Fund Institutions (CDFI) Fund appropriations. The National Community Reinvestment Coalition’s (NCRC) President and CEO Jesse Van Tol released the following statement:
“We welcome the release of the remaining CDFI Fund appropriations. These funds are long overdue, and communities across the country need them now. CDFIs help make financing possible in places traditional lenders too often overlook. They support small businesses, build and preserve affordable rental housing, help first-time homebuyers and provide capital for childcare centers, health clinics and other community facilities in neighborhoods that have seen little investment in decades.Â
“At the same time, we are deeply concerned by the US Treasury’s newly announced restrictions for CDFI Fund programs. NCRC supports strong accountability, but accountability should strengthen community finance, not make it harder for lenders to serve the communities that depend on them. Policies that raise the risk of decertification will create uncertainty, discourage partnership and innovation and slow the flow of capital into communities.
“The US Treasury should work directly with CDFIs, including smaller CDFIs, as it considers these changes. Mission-driven lenders have firsthand knowledge of what these requirements will mean for underwriting, staffing, reporting and how quickly capital reaches communities.”
