CDFIs on the Prize: Recent Federal Awards for Community Development Financial Institutions
Abstract: Community Development Financial Institutions (CDFIs) are mission-driven banks, credit unions, loan funds, and venture capital funds that expand financial access to low-and-moderate income (LMI) and underserved populations. In the past two years, after recognizing CDFIs' ability to reach and serve populations that were hard hit by the pandemic, Congress appropriated a total of $12 billion to the industry through three special programs. The money was allocated to the U.S. Department of the Treasury through the Consolidated Appropriations Act, 2021. The scale of these funds set aside for CDFIs is impressive. For comparison, recent annual appropriations to the CDFI Fund — which manages a certification program, funding, and training for the industry — were between $250 million and $300 million. This post looks at how this large, targeted investment in CDFIs was distributed to institutions in the Federal Reserve's Fifth District to improve economic conditions for low-income and financially underserved people.
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Description: Discussion Paper
Provider: Federal Reserve Bank of Richmond
Part of Series: Regional Matters
Publication Date: 2023-06-16