WASHINGTON –Sens. Mark R. Warner (D-VA) and Mike Crapo (R-ID) have formed the Senate Community Development Finance Caucus (CDFC), which they are describing as a bipartisan caucus dedicated to supporting the missions of Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs) to “scale their activities and fuel more lending in low- and moderate-income (LMI) communities.”
“CDFIs and MDIs play an essential role in providing access to capital in underserved communities. While Congress took significant steps to support community-based lenders over the last two years on a bipartisan basis, CDFIs continue to need more long-term patient capital, operating capital, and resources to modernize their systems and compete in an era of rapid financial innovation,” said Warner. “I am happy to announce the creation of this caucus with Sen. Crapo to improve communication between industry and policymakers and continue working in a bipartisan fashion towards robust investments in CDFIs and MDIs.”
Forum to Share ideas
Added Crapo in a statement, “I have consistently heard positive news and success stories about CDFIs in Idaho and across the country, and their responsiveness to the small business community, particularly during these last few challenging years of the pandemic. Sen. Warner and I are proud to launch this caucus to educate members and staff about the important role CDFIs play in their communities, and to create a forum to share ideas and policy proposals that foster strong economic growth in local communities.”
The 14-member caucus is bipartisan and evenly divided between Democrats and Republicans and includes Sens. Amy Klobuchar (D-MN), Mike Braun (R-IN), Jon Ossoff (D-GA), Steve Daines (R-MT), Jack Reed (D-RI), Cindy Hyde-Smith (R-MS), Tina Smith (D-MN), Cynthia Lummis (R-WY), Chris Van Hollen (D-MD), Jerry Moran (R-KS), Rev. Raphael Warnock (D-GA), and Mike Rounds (R-SD).
A summary deck describing the caucus can be found here. More information on the caucus can be found on its webpage here.
Statements of Support Shared
A number of credit union organizations have issued statements of support, including:
- “CDFIs with proven records of serving underbanked people and communities of color are vital to an inclusive economy. The creation of the Caucus represents an important step in ensuring that America’s financial system works for everyone,” said Bill Bynum,Hope Credit Union CEO.
- “Inclusiv, the largest CDFI network representing near 500 community development credit unions providing responsible and sustainable financial products to over 18 million predominantly low income and minority consumers, expresses its strong support for the formalization of a congressional caucus that will be focusing on community development, financial inclusion and the economic revitalization of minority communities through CDFIs. This body will provide a platform to engage the CDFI industry and inform the development of public policy that’s both impactful and sustainable. We are grateful to Sens. Warner, Crapo, and all caucus members for spearheading this important initiative and call on other senators to lend their support,” said Cathie Mahon, President and CEO of Inclusiv.
- “The African-American Credit Union Coalition (AACUC), is proud to partner and collaborate with INCLUSIV on ensuring that there is equitable financial futures for all people – especially the marginalized and underserved – usually the Colored Majority. A Community Development Finance Caucus would provide the appropriate forum for ideas and strategies to be discussed and executed,” said Renée Sattiewhite, president and CEO of the African American Credit Union Coalition.
- “On behalf of the National Association of Latino Credit Unions and Professionals, we applaud Sens. Warner, Crapo, and all caucus members for leading the organizing of a CDFI Caucus that will give lawmakers a platform to support the critical work of CDFIs play in low income and communities of color as financial first responders and engines of economic revitalization. Our organization is in full support of this initiative and asks members of the Senate to support it as well,” said Maria Martinez, chair, National Association of Latino Credit Unions and Professionals.
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