Biden Administration announces over $8 billion in investments for CDFIs, MDIs

by NAFCU Newsroom

Vice President Kamala Harris and Treasury Secretary Janet Yellen, along with House Financial Services Committee Chairwoman Maxine Waters, D-Calif., and Senator Mark Warner, D-Va., on Wednesday announced that the Biden-Harris Administration has made $8.28 billion of investments through the Emergency Capital Investment Program (ECIP) to benefit community development financial institutions (CDFIs) and minority depository institutions (MDIs).

“I am proud that the Biden-Harris Administration is announcing that they have turned our legislation into reality by providing more than $8 billion in capital investments to strengthen 162 community financial institutions,” stated Waters. “Since the 2008 financial crisis, I have been dismayed that we saw one-third of our MDIs close, and even worse, more than half of the nation’s Black banks have been lost. These are losses that our communities cannot afford.

“MDIs as well as CDFIs have proven critical to distributing capital, credit, and financial services to their local communities,” added Waters. “Their support is critical because these communities are often underserved and ignored by other financial institutions.”

NAFCU has long supported CDFIs and MDIs, noting the impact CDFI-certified credit unions have on local communities. The association has pushed Congress for more funding and a better CDFI certification process to help financial institutions, especially credit unions, better support underserved areas.

 

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