The recently announced President’s Executive Order poses a profound threat to one of America’s most effective engines for economic empowerment—the Community Development Financial Institutions (CDFI) Fund. We stand in fierce opposition to any attempt to weaken or eliminate this critical lifeline, affirming with unwavering resolve that CDFIs are essential to dismantling systemic inequities and unlocking true economic opportunity for all.
Since its inception in 1994, the CDFI Fund has provided approximately $8 billion in critical capacity building grants, facilitated $3 billion in bond guarantees, and allocated $81 billion in tax credits, predominantly benefiting minority and underserved communities. By channeling these funds, the CDFI Fund has mobilized substantial private sector investments, multiplying every federal dollar invested to build community wealth and promote economic resilience.
The measurable impact of CDFIs is revolutionary and undeniable:
- Collectively, CDFIs manage assets exceeding $222 billion, fueling economic growth in underserved regions.
- Each year, CDFIs have created or retained more than one million jobs nationwide, reinforcing local economies.
- They have supported millions of small businesses and entrepreneurs, stabilized local economies and promoted sustainable growth.
- Newly certified CDFIs have created over 3,800 new homeowners, prevented 561 foreclosures, and provided crucial financial education and resources to thousands of families.
If the CDFI Fund is dismantled or weakened, underserved communities, rural, and urban will bear the brunt. The ripple effect will devastate local economies, close businesses, eliminate vital jobs, and deepen entrenched racial and economic disparities. This act is an economic assault on our most vulnerable communities, one that perpetuates poverty and inequality.
The African American Alliance of CDFI CEOs rejects any move against the dismantling of the CDFI Fund. We remain unapologetically dedicated to fighting for economic opportunity, strengthening financial access, and ensuring that CDFIs continue delivering capital where it is needed most. We will mobilize our collective power and ensure that the voices and needs of marginalized communities are not only heard but heeded. Preserving the CDFI Fund is a moral imperative essential to the future of America’s most underserved communities.
Lenwood V. Long, Sr, CEO at The Alliance states, “We cannot remain silent or passive. This is our fight. The strength of our communities lies in our ability to unite and uplift – the work of CDFIs embodies that strength. We need to ensure economic development for communities most in need remains at the forefront of our national agenda while refusing to accept anything less than true economic opportunity for all.”
About the African American Alliance of CDFI CEOs
The African American Alliance of CDFI CEOs (The Alliance) is a coalition of nearly 108 CEOs of Black-led Community Development Financial Institutions (CDFIs) and mission-driven organizations, comprising loan funds, credit unions, venture capital firms, and non-profit developers. Since 2018, The Alliance’s network collectively services all 50 states and the District of Columbia. As a result, members are uniquely positioned to address issues related to housing and access to capital for African American populations and communities. Learn more about The Alliance and its programs at https://aaacdfi.org/.
