Dorchester Bay Economic Development Corporation acknowledges President Trump’s recent executive order affecting the Community Development Financial Institutions (CDFI) Fund. As a home-grown Community Development Corporation and certified CDFI serving local neighborhoods for over 45 years, we remain steadfast in our commitment to our local community regardless of this administrative action.
The CDFI model represents one of the strongest and most strategic investments in America’s economic landscape. With over 1,400 certified CDFIs operating 5,900 headquarters and branch locations across every state and most U.S. territories, CDFIs like Dorchester Bay EDC are local, community-based financial institutions that strengthen neighborhoods throughout America. It’s worth noting that 60% of CDFI physical locations are in Republican Congressional Districts and 55% are in states with two Republican Senators, demonstrating the broad, bipartisan impact of our work.
For decades, CDFIs have used critical federal dollars to build housing for hardworking American families, to invest in local entrepreneurship, to create paths to self-sufficiency, and to open doors to wealth. The CDFI Fund is a smart investment for America, providing $1 in federal money to leverage an average of $8 in private deposits, loans, and other investments. For every dollar the CDFI Fund invests in organizations like ours, we generate many more dollars in local economic activity, creating prosperity that stays in our communities.
We are encouraged by the continued bipartisan support for the CDFI Fund’s mission. As Senators Mark Warner (D-VA) and Mike Crapo (R-ID), co-chairs of the Senate Community Development Finance Caucus, recently stated: “Since 1994, the CDFI sector has grown to over 1400 institutions, located in every state and territory in the nation — and leveraging at least $8 in private sector investment for every $1 in public funding received.” Their statement reaffirms “bipartisan commitment to support the CDFI Fund’s mission” from their caucus of 28 members, evenly split between Democrats and Republicans.
In economic downturns, policymakers look to CDFIs because of our unique ability to go deep into local markets to promote recovery. CDFIs have consistently stepped up during national crises, whether financing small businesses after the 2008 recession, rebuilding communities after natural disasters, or revitalizing Main Streets in forgotten towns across rural America. We deliver capital directly to entrepreneurs who create jobs and provide essential services when communities need them most.
President Trump’s executive order’s stated goal of “returning power to local communities” contradicts the very nature of CDFIs, which are locally-controlled financial institutions designed to empower individuals, families, and small businesses to address their own economic challenges. CDFIs are not examples of government overreach, fraud, or waste but rather exemplify efficient, market-based solutions that build pathways to wealth and opportunity for all Americans.
Our work will continue unabated. Dorchester Bay EDC remains committed to our mission of building a strong, thriving, and vibrant communities. We will continue to expand access to capital for local small businesses and entrepreneurs, create affordable housing opportunities, and connect people to good jobs – all essential elements of American prosperity.
Time is short to preserve the CDFI Fund per the Executive Order. The impact of changes to the CDFI Fund will be significant, particularly for communities that rely on this essential source of investment. Dorchester Bay EDC remains committed to educating the public, stakeholders, and policymakers about the importance of CDFIs and their proven success in creating opportunity and advancing economic mobility. We encourage all those who care about economic development to stay informed, engage in the conversation, and learn more about how decisions at the federal level impact local communities.
