Chairman Cleaver Introduces Legislation to Foster Greater Economic Development in Underserved Communities

(Washington, D.C.) - Today, U.S. Representative Emanuel Cleaver, II (D-MO), Chair of the Financial Services Subcommittee on Housing, Community Development, and Insurance, introduced H.R. 7733, the CDFI Bond Guarantee Program Improvement Act. The bill would stimulate greater economic development in underserved communities by making the CDFI Bond Guarantee Program permanent and implementing reforms to ensure smaller Community Development Financial Institutions (CDFI) can access the program, which would support more community development projects in economically distressed areas. Through the CDFI Bond Guarantee Program, Treasury makes long-term capital available to CDFIs to make substantial investments in the nation's most distressed communities.

"One of the largest barriers to community development in rural and urban America is lack of access to affordable financing -and it's crushing communities that are desperate for a lifeline," said Congressman Cleaver. "This legislation would help to uplift economically distressed areas by strengthening the CDFI Bond Guarantee Program-which has a long track record of positive development in underserved areas. By making the program permanent and lowering the minimum loan threshold so more CDFIs can participate, we can ensure that more communities can benefit from this effective program. I'm thankful for Senators Smith and Rounds for introducing this bipartisan bill in the Senate, and as Chairman of the Subcommittee on Housing and Community Development, I will continue gathering support for the legislation from my colleagues in the House of Representatives until it becomes law."

The CDFI Bond Guarantee Program was created in 2010 to provide long-term capital to CDFIs across the country at no expense to American taxpayers. While the program's authorization lapsed in 2014, it has been extended on a year-by-year basis through annual appropriations legislation. As currently codified, CDFI borrowers must have a loan size of at least $100 million to participate in the program-which allows for only relatively large and often complex multi-party applications.

The CDFI Bond Guarantee Program Improvement Act would permanently authorize the CDFI Bond Guarantee Program and lower the minimum loan threshold to $25 million, allowing smaller CDFIs to access the benefits of the program and stimulate increased community development projects in rural, urban, and tribal communities across the country.

The CDFI Bond Guarantee Program Improvement Act is endorsed by the Independent Community Bankers of America, National Association of Federally Insured Credit Unions, CDFI Coalition, Community Reinvestment Fund, USA (CRF), Opportunity Finance Network (OFN), Local Initiatives Support Corporation (LISC), National Association of Latino Community Asset Builders, National Community Reinvestment Coalition (NCRC), and Lendistry.

Official text of the CDFI Bond Guarantee Program Improvement Act is available here.

Emanuel Cleaver, II is the U.S. Representative for Missouri's Fifth Congressional District, which includes Kansas City, Independence, Lee's Summit, Raytown, Grandview, Sugar Creek, Blue Springs, Grain Valley, Oak Grove, North Kansas City, Gladstone, Claycomo, and all of Ray, Lafayette, and Saline Counties. He is a member of the exclusive House Financial Services Committee; Chairman of the House Subcommittee on Housing, Community Development, and Insurance; member of the Select Committee on the Modernization of Congress; member of the Committee on Homeland Security; and a Senior Whip of the Democratic Caucus. A high-resolution photo of Congressman Cleaver is available here.