U.S. Senate Announces Creation of Community Development Finance Caucus
On Monday, August 1, Native CDFI Network News reported U.S. Senators Mark R. Warner (D-VA) and Mike Crapo (R-ID) announced the creation of the Senate Community Development Finance Caucus (CDFC), 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.
On a bipartisan basis, Sen. Warner worked with Sen. Crapo, former Treasury Secretary Steven Mnuchin, and other colleagues to introduce the Jobs and Neighborhood Investment Act, which passed as part of the December 2020 COVID relief package. The bill made a historic $12 billion investment in CDFIs and MDIs, which included $3 billion for grant funding and $9 billion for tier-one capital investments in CDFIs and MDIs, which could be leveraged 10 to 1.
“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,” Sen. Warner said. “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.”
During the pandemic, CDFIs demonstrated their ability to deliver billions of dollars to underserved businesses through the Paycheck Protection Program (PPP), totaling approximately $34 billion.
“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,” said Sen. Crapo. “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 evenly divided between Democrats and Republicans including 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).
Source: Native CDFI Network News. “U.S. Senate Announces Creation of Community Development Finance Caucus.” August 1, 2022.