The CDFI Fund is one of the federal government’s most successful efforts to translate public investment into additional private dollars. Since its inception in 1995, it has invested $1.11 billion, and, on average, leveraged between $19 and $27 in other private sector investment for each dollar invested. To support this lending, leverage, and the resulting increased economic activity in low-income areas, IFF supports increased funding for the Treasury Department’s CDFI Fund.

Recognizing the critical financing that CDFIs are providing during the current financial crisis, President Obama’s budget for fiscal year 2011 proposes $250 million for the U.S. Treasury Department’s CDFI Fund, and some Members of Congress, such as Rep. Luis Gutierrez (IL-4), are calling for an even larger increase.

IFF supports funding of at least $250 million for the CDFI Fund in FY 2011.