Statement from the NYS CDFI Coalition
Community Development Financial Institutions (CDFIs) have been working with the CDFI Fund for more than thirty years to provide capital to under-resourced communities.
During the pandemic, we served as financial first responders, deploying funds to keep up with the expectations of our clients and the urgent needs of the underserved.
We continue to meet enormous market demand, providing capital for housing, small business, and community revitalization. Support from the CDFI Fund allows us to maximize our impact in New York's low-income areas - urban, rural and everywhere in between.
Local CDFIs develop unique programs and tailored resources by leveraging federal dollars with private capital.
Grants from the CDFI Fund of the US Department of Treasury, blended with lending capital from commercial banks and other resources, allow local CDFIs to offer loans at lower rates to borrowers who may not be able to access traditional bank financing.
These grants are not spent down, as traditional grants are. Instead, as loans are repaid, the funds are recycled into new projects.
In addition to lending, we offer technical assistance to our borrowers to help them develop much-needed housing, build businesses, and revitalize neighborhoods.
The Constitution gave the power of the purse – the nation's checkbook – to Congress. We urge our representatives to reclaim their Constitutional spending authority, safeguard our nation's separation of powers, and stand against the elimination of the Community Development Financial Institutions Fund.
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