Thursday, Sep 8 2011 2:00PM
The CDFI Bond Program provides CDFIs with $1 billion in guaranteed government loans every year until 2014 to fund focus areas such as business development.
Community Development Financial Institutions (CDFI) from throughout the U.S. met in Newark, New Jersey, recently to discuss the multi-billion-dollar CDFI Bond Program that will soon be implemented.
Senator Robert Menendez of New Jersey, who introduced the legislation to create the bond program in December 2007, headed the meeting of CDFIs with Donna Gambrell, director of the CDFI Fund.
Menendez stated CDFIs are substantially important in providing small businesses with capital and reducing practices such as payday lending, and are essential in community economic development.
National Federation of Community Development Credit Unions President and CEO Cliff Rosenthal said he was glad to hear a lawmaker who understands CDFIs' needs.
"Senator Menendez's remarks clearly show that he was aware of key concerns of the CDFI field," said Rosenthal. "He commented on the need to guarantee bonds based on the creditworthiness of issuing CDFIs, not simply individual projects."
The CDFI Bond Program provides $1 billion in government guarantees of issuance per year in CDFI loans through 2014.