Beneficial State Bank Statement Regarding the Proposed CDFI Fund Budget Cuts
The president’s decision to cut funding for the CDFI Fund is outrageously bad policy that will have a resounding impact in low-income neighborhoods and historically marginalized communities for generations to come. The program the president has chosen to cut expands economic opportunity for under-served people in low-income communities across the country.
The CDFI Fund is one of the federal government’s best market-based strategies for leveraging private dollars to restore economic vitality in distressed communities. It empowers community development banks, like Beneficial State Bank, to lend more deeply to low-income communities – where big banks often refuse to go.
In 2016 alone, CDFIs made loans or investments totaling over $3.6 billion, including financing over 11,300 small businesses across the country.
When Beneficial State Bank receives CDFI grant funding, we’re able to increase economic opportunity for low-to-moderate income communities by leveraging the funds through our powerful bank model. We have loaned over $100 million to more than 11,000 Californians who have below-prime credit and limited access to resources. Loans like these help individuals and families to meet basic needs, such as purchasing a car to be able to get to work. Additionally, across the West Coast in California, Oregon, and Washington, we have loaned over $51 million within the past four years to borrowers from low-income communities to grow their businesses or nonprofits.
These loans have ripple effects of creating jobs and spurring economic growth.
The CDFI Fund improves lives and builds communities up, giving people economic opportunity that otherwise wouldn't be possible.
We will continue to advocate for a healthy CDFI Fund that empowers the very urban and rural communities we are called upon by the Trump administration to help. We strongly believe cutting the CDFI Fund runs against American values and interests
In 2016, CDFIs made over 39,000 loans or investments totaling over $3.6 billion, financed over 11,300 small businesses and over 33,000 affordable housing units.
There are 1,049 Treasury certified CDFIs across the US.
CDFIs leverage over $12 in private capital to every $1 in federal support.
Source: CDFI Coalition