House Appropriation Committee Approves $221 Million for CDFI Fund

July 18, 2013  |   CDVCA Ventures Blog,Industry News,Public Policy   |     |   0 Comment

The House Appropriations Committee met today to mark-up the FY 2014 Financial Services and General Government Appropriations Bill. The bill approved by the Appropriations Committee includes $221 million for the CDFI Fund, which while $3.9 million less than requested in the President’s budget would allow the CDFI Fund to operate at its FY 2013 pre-sequester funding level.

Of the $221 million provided for the CDFI Fund, the Committee sets aside $189 million for financial and technical assistance grants, $12 million for CDFI Native Initiatives, and $20 million for administrative expenses. The Committee does not set aside funds for Bank Enterprise Awards (BEA), Bank on USA, Healthy Foods Financing and the Committee did not include the CDFI Bond Guarantee language requested by the President.

The Committee Report filed by the Financial Services and General Government Appropriations Subcommittee includes the following instructions urging the CDFI Fund to extend the reach of CDFI programs to “distressed communities” and to support qualified “minority participation” in the New Markets Tax Credit program:

Territories and Rural Communities.—The Committee notes the lack of CDFIs serving the territories and rural communities. The goals of the CDFI programs apply equally to distressed communities located both near and far from financial centers. The CDFI Fund, however, establishes goals based on the composition of financial institutions that apply for grants and loans in a given year, rather than the needs of the communities in distress. Consequently, some communities in distress are not supported by the CDFI Fund because no certified financial institution serves that community. The Committee expects the Department to extend the reach of CDFI programs to distressed communities. New Market Tax Credits.—The Committee supports qualified minority participation in the New Market Tax Credit program to increase entrepreneurship.

The FY 2014 FSGG Bill now heads to the House floor for consideration by the full House of Representatives. The Senate Financial Services and General Government Appropriations Subcommittee, now chaired by Senator Udall (D-NM) has not marked up its FY 2014 bill but they are expected to meet before Congress recesses for August.