U.S. Secretary of the Treasury Janet L. Yellen issued a statement today to mark the 30th anniversary of the Community Development Financial Institution (CDFI) Fund.
“Thirty years ago, President Clinton worked to establish the Community Development Financial Institution (CDFI) Fund with bipartisan congressional support to promote economic development in communities that had been overlooked and left behind,” said Yellen. She highlighted the significant impact the CDFI Fund has had over its three decades of operation.
Since its inception, the CDFI Fund has awarded more than $7 billion to community lenders and CDFIs, as well as $76 billion in tax credits to community development entities. Yellen noted that “every dollar the CDFI Fund invests is estimated to catalyze at least eight dollars in private-sector investment, magnifying its impact.”
Yellen emphasized that while the fund has consistently played an important role, it has been particularly crucial during the Biden-Harris Administration's efforts for economic recovery from COVID-19 and advancing long-term economic goals. “Under the Biden-Harris Administration, CDFIs and other community lenders have received record public and private sector support to help small businesses survive the economic crisis and grow and hire during the economic recovery,” she stated.
Additionally, these lenders have been instrumental in increasing housing supply. In June, Yellen announced that “the CDFI Fund will provide an additional $100 million over the next three years to support the production of affordable housing.”
Reflecting on three decades of work by the CDFI Fund, Yellen remarked on its vital role in promoting economic development across numerous U.S. communities: “As we look back over the last 30 years, it is remarkable how significant a role the CDFI Fund has played in fueling economic development in countless communities across the United States, and we look forward to continuing this important work in the years ahead.”
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