WASHINGTON--(BUSINESS WIRE)--City First issued the following: The proposed 2018 budget outline released by the Trump Administration last week tips toward the elimination of one of the most effective Federal programs to spur private investment, create jobs, and promote small businesses in economically distressed areas of DC.
The President’s proposal would cut the CDFI Fund by $210 million and eliminate the Community Development Financial Institution (CDFI) Program and the Bank Enterprise Awards Program (BEA). The proposal would leave only administrative funds to run non-discretionary initiatives. The CDFI Fund is one of the Federal government’s best market-based strategies for leveraging private dollars to restore economic vitality. The CDFI Fund is currently funded at $233.5 million under the FY 2017 Continuing Resolution at FY 2016 levels.
In the Washington, DC metropolitan area, CDFI banks such as City First and Industrial, along with CDFI nonprofits such as City First Enterprises, Enterprise Community Partners, Washington Area Community Investment Fund, LISC DC and Latino Economic Development Corporation, would be affected, causing a ripple effect to the vulnerable communities of service.
“Loss of funding for these programs would be devastating. With a very modest amount of Federal money, CDFIs are able to leverage significant private investment to create jobs, expand small businesses, build affordable housing, and expand access to education opportunities and healthcare for people in communities who need it most,” said Brian Argrett, Chairman of the Community Development Bankers Association and President & CEO of City First Bank in Washington, DC. “The CDFI Fund is one of the great success stories.”
City First has cumulatively deployed over $1 billion in capital toward community development making impact investments in affordable housing, small businesses and community facilities such as arts and health centers. City First has helped to create or retain almost 15,000 jobs; serve over 590,000 clients in community facilities; added over 13,000 charter school seats; and nearly 7,000 units of affordable housing units, with the majority of impact in the Washington, DC metropolitan area.