"Small Businesses have always formed the backbone of the American economy. These entrepreneurial pioneers embody the spirit of possibility, the tireless work ethic, and the simple hope for something better that lies at the heart of the American ideal. The problem is, our small businesses have been some of the hardest hit by this recession. There’s no question that the steps we’ve taken have improved the overall climate for small businesses across the country, but there is more we need to do. And that’s why today, we’re announcing new steps to support more lending to America’s small businesses—steps that will lead to more jobs, more growth, and a stronger economic recovery."

President Barack Obama

Statement from CDFI Fund Director Gambrell on White House Announcement Related to Lower Cost Capital for CDFIs

October 21, 2009

Washington, DC - Community Development Financial Institutions (CDFI) Fund Director Donna J. Gambrell issued the following statement on the Small Business lending Initiative announced today.

"The initiatives announced today by President Obama will help depository institutions in our nationwide network of Community Development Financial Institutions to increase small business lending within low-income communities. I am encouraged that the plan includes community development banks, thrifts and credit unions and provides them with preferential terms to increase their lending to the hardest-hit rural and urban communities; and that Treasury will continue to actively explore ways in which CDFI loan funds might receive assistance in increasing liquidity to free up additional small business and economic development lending."

"These new initiatives, coupled with the President’s fiscal year 2010 budget request, and resources provided through the Recovery Act, set a new trajectory for CDFI lending that will fuel the economic growth of entrepreneurs and small businesses."

The White House press release and fact sheet on the President's Small Business Lending Initiative can be viewed here:

Press release:
www.whitehouse.gov/the_press_office/President-Obama-Announces-New-Small-Business-Lending-Initiatives/

Fact sheet:
www.whitehouse.gov/assets/documents/small_business_final.pdf

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[CDFI-2009-58]