U.S. Sens. Steve Daines (R-MT) and Mark Warner (D-VA) introduced legislation that will bring added transparency over Community Development Financial Institution (CDFI) Fund operations.
The Access to Fair Financing for Opportunity and Resilient Development (AFFORD) Act (S. 3940) would require the Secretary of the Treasury to testify annually before the Senate Banking and House Financial Services Committees regarding the operations of the CDFI Fund during the previous fiscal year.
The bill would also extend and enhance the CDFI Bond Guarantee Program to enable participation by smaller CDFIs. In addition, it would reauthorize the CDFI liquidity enhancement program to increase CDFI lending capacity and reach more communities. Finally, it would bolster the role of Native CDFIs by expanding a USDA CDFI relending program that partners with Native CDFIs to deploy mortgage loans to eligible Native borrowers.
“CDFIs help hardworking families and small business owners in Montana gain access to the opportunities and capital they need for financial success, especially in Montana’s rural and tribal communities. It’s critical we improve transparency surrounding the operations of the CDFI Fund to ensure its programs continue to serve the vital role of increasing economic development and helping Montana communities thrive. I’m glad to introduce the AFFORD Act, which will do just that,” Daines said.
Daines is a member of the bipartisan Senate CDFI Caucus.
“CDFIs are critical in bringing capital and financial services to rural, tribal, and underserved communities, and they can be significant partners for local governments to battle rising costs and affordability. I’m proud to be introducing the AFFORD Act, which will expand the capacity of CDFIs so they can reach more communities across Virginia,” Warner said.