Good afternoon. President Clinton was welcomed to the Treasury Department to commemorate the 30th anniversary of the Community Development Financial Institutions (CDFI) Fund. Secretary of the Treasury Janet L. Yellen emphasized their shared belief in expanding economic opportunities for underserved communities, stating, "increasing access to economic opportunity for people and places that historically have been underserved is crucially important."
The CDFIs are recognized for their role in providing financial services like home mortgages and small business loans to underserved areas. Since 1997, they have grown from fewer than 200 nationwide to over 1,400, holding approximately $450 billion in assets.
The CDFI Fund has contributed significantly by providing over $8 billion to CDFIs and mission-driven lenders and $81 billion in tax credits since its inception. In 2023, it awarded more assistance than ever before. Yellen highlighted an analysis indicating that every dollar invested by the CDFI Fund catalyzes at least eight dollars in private sector investment.
Yellen noted efforts under the current administration to support workers and businesses during the COVID-19 pandemic through programs like the Rapid Response Program and Emergency Capital Investment Program. These initiatives aimed at low- and moderate-income communities have reportedly led to positive outcomes such as a new family health clinic in Arkansas and loans supporting a manufacturer in Puerto Rico.
The recovery driven by these efforts was described as historically fast and inclusive, with significant growth in new business applications among Black and Hispanic communities.
Yellen also announced future investments: "$100 million over the next three years" will be allocated for affordable housing supply increase from Emergency Capital Investment Program payments. Additionally, nearly $250 million was awarded last month through the Capital Magnet Fund for affordable housing development.
She also shared news of "$76 million in Technical Assistance awards" being given to over 250 organizations to build capacity as certified CDFIs.
Yellen reflected on bipartisan support received by the CDFI Fund throughout its history, noting commitments from large companies totaling over $1 billion toward increasing liquidity for lending purposes.
President Clinton's vision thirty years ago set this initiative into motion with bipartisan backing. He remarked at its creation: “We have got to find ways to reach into isolated areas of America.”
In closing, Yellen expressed pride in continuing this legacy at the Treasury Department while underscoring its importance moving forward: "the CDFI Fund must be equipped to continue this crucial work." She thanked President Clinton for his foresight before inviting him to speak.
