FEDERALhearing transcript

Senate Hearing: How Community Development Financial Institutions (CDFIs) Support Underserved Communities

Original title: EXPLORING HOW COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS SUPPORT UNDERSERVED COMMUNITIES

January 1, 2023

banking economic development financial inclusion CDFI underserved communities capital access

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The Frame

What this does

The hearing serves as a formal record for potential future legislation regarding federal support and funding for s, which provide loans and financial services to communities that often lack access to traditional banking.

Who is mentioned in the record

Potentially affected actors named in the source documents. Mention is not a position.

Underserved communities

These groups are the primary recipients of capital and financial services provided by CDFIs.

CDFI Coalition

The organization provides testimony and policy recommendations regarding the federal support of CDFIs.

What changed

Last recorded activity January 1, 2023.

What's next

Next step not available in the current record.

Summary

This Senate subcommittee hearing examined the role of Community Development Financial Institutions (s) in providing and financial services to underserved populations. The discussion focused on addressing long-standing economic disparities and the challenges these communities face in accessing the traditional financial system.

Key Facts

The hearing took place on January 5, 2022, before the Subcommittee on Housing, Transportation, and Community Development.
As of 2019, the typical Black family's net worth was 15% of a typical White family's net worth.
As of 2019, the typical Hispanic family's net worth was 19% of a typical White family's net worth.
The CDFI Fund was established in 1994.
The number of CDFIs has grown from approximately 80 in 1994 to over 1,000 as of the hearing date.
The hearing included testimony from the CDFI Coalition, the Community Reinvestment Fund, and the Four Bands Community Fund.
A GAO report on Federal Home Loan Banks was submitted for the record.

Frequently Asked Questions

What is a CDFI?

A Community Development Financial Institution () is a specialized financial institution that provides and financial services to underserved communities, including urban, rural, and tribal areas.

What is the purpose of the CDFI Fund?

The Fund is a federal agency established in 1994 to oversee programs that support CDFIs in their mission to bring financial services to underserved populations.

Why It Matters

News Coverage

No news coverage found yet. Articles are indexed twice daily.

Discoveries

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift100% confidence

Growth of CDFI Sector

The sector has grown from 80 institutions in 1994 to over 1,000, indicating a significant expansion in the federal strategy for community-based financial support.

CDFI Fund

Connected Entities

personLakota Vogel“Executive Director of Four Bands Community Fund”Map →

personJohn Holdsclaw, IV“President of the CDFI Coalition”Map →

organizationCDFI Fund“Federal agency that oversees CDFI programs”Map →

personTina Smith“Chair of the Subcommittee on Housing, Transportation, and Community Development”Map →

personFrank Altman“Founder and CEO of Community Reinvestment Fund, USA”Map →

personMike Rounds“Ranking Republican Member of the Subcommittee”Map →

Sources

Open source document

www.govinfo.gov

Analysis Score

0–100

Significance60
How much this matters to a regular citizen
Controversy20
Intensity of disagreement among stakeholders
Entertainment10
Compellingness for a non-policy-wonk reader
Buzz15
Current news / social attention level

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