WASHINGTON—Members of the Senate Banking Committee discussed during a hearing how Community Development Financial Institutions (CDFIs) can better support underserved communities. Much of the discussion was around strengthening CDFIs in addition to call Congress to work together to address regulatory changes that will benefit the institutions.
In an opening statement, Housing, Transportation, and Community Development Subcommittee Chairwoman Tina Smith (D-MN) spoke to what she called the “good work that CDFIs do and the value they bring,” and highlighted how the loans they were able to provide to low-income areas other FIs couldn’t help during the pandemic.
In addition, Smith mentioned the bipartisanCDFI Bond Guarantee Program Improvement Actthat she and Ranking Member Mike Rounds (R-SD) introduced. The bill aims to jumpstart economic development in economically distressed areas and address disparities in access to capital for underserved communities by strengthening and expanding CDFIs, according to NAFCU’s analysis of the hearing.