U.S. TREASURY’S CDFI FUND PARTNERS WITH PRIVATE SECTOR AND MUNICIPALITIES TO INVEST IN COMMUNITY DEVELOPMENT, JOBS GROWTH AND AFFORDABLE HOUSING
WASHINGTON- 2016 marked a banner year for the United States Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund). In total, the CDFI Fund invested over $500 million in financial assistance, technical assistance and loan guarantees to over 200 CDFIs, including Native CDFIs, through the CDFI Program, Native Initiatives, Capital Magnet Fund and Bond Guarantee Program. These resources will be leveraged many times over to improve economic growth in underserved communities. It is hoped that 2017 will bring more of the same focus on promoting economic prosperity.
CDFIs are private sector financial institutions that invest in economically distressed communities. Once certified by the Treasury Department, CDFIs are eligible to apply for funding through a highly competitive application and selection process administered by the CDFI Fund. CDFIs leverage their awards with capital from other investors to support small businesses, affordable housing, community health centers, grocery stores, child care facilities, and other economic development initiatives that contribute to economic revitalization.
In addition, the CDFI Fund allocated a record-breaking $7 billion in tax credits through the New Markets Tax Credit Program. Municipalities, through subsidiary corporations, can be certified as Community Development Entities (CDEs) making them eligible to apply for New Markets Tax Credits. To date, the New Markets Tax Credit program has allocated $50.5 billion in tax credits, helping generate $8 of private investment for every dollar invested by the federal government.
Since the program’s inception in 1994, the CDFI Fund has helped build a nation-wide network of over 1,000 CDFIs committed to ensuring that underserved areas have access to affordable financial services products.