In a recent Marketplace article and podcast episode, national leaders spoke out about the potential impacts of proposed changes to the CDFI Fund and the vital role Community Development Financial Institutions (CDFIs) play in underserved communities. The story underscores growing concerns about funding uncertainty and what it could mean for Native CDFIs and other mission-driven lenders.
Michael Swack, Director of the Center for Impact Finance at the University of New Hampshire, emphasized that without strong, reliable CDFI Fund support, many communities that have historically been excluded from mainstream financial systems would face even greater barriers to capital and development opportunities. Swack noted that CDFIs are often the only institutions willing to invest in Native, rural, and low-income communities.
Similarly, Lenwood Long, CEO of the African American Alliance of CDFI CEOs, highlighted that CDFIs are essential “economic first responders,” bringing affordable financial products and services directly to the communities that need them most. He stressed that weakening CDFI Fund support would not just disrupt lending — it would unravel years of progress toward economic equity.
The article paints a clear picture: CDFIs, including Native CDFIs, are critical drivers of local economies, and any reduction in federal support would have deep and lasting consequences.
You can read and listen to the full story here.