Statements from CDFI Fund Director Gambrell and Advisory Board Chairman Bynum on Announcement of Enhancements to TARP Initiative to Support CDFIs

Lower Cost Capital for Expanded Number of CDFIs Depository Institutes Available

February 3, 2010

Washington, DC - U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) Director Donna J. Gambrell and Advisory Board Chairman William J. Bynum issued the following statements on the announcement a new program under the Troubled Asset Relief Program (TARP) to invest lower-cost capital in Community Development Financial Institutions (CDFIs) that lend to small businesses in the country's hardest-hit communities.

“The resources that will be deployed through this new TARP initiative will certainly be used expeditiously and wisely by these CDFIs to spur economic growth and create needed jobs in the distressed communities they loyally served. The terms set forth today by the Treasury Department will provide critically needed capital investment into CDFIs depository institutions, which will result not only in increased small business and community development lending in our nation’s hardest-hit communities, it will also ensure that the decades of gains these mission-driven lenders have made building communities are not reversed by the economic downturn. CDFIs fill a gap in the market by providing capital, credit and basic financial services in underserved low-income communities. Without them, the small businesses and families that are the foundation of these communities would not have access to affordable financial products.”


CDFI Fund Director Donna Gambrell

“I am very excited about Secretary Geithner’s announcement of the TARP initiative for CDFIs. Recognizing the impressive track record of CDFIs and their responsible business lending, and their sound stewardship of taxpayer dollars, Treasury officials worked diligently with the Community Development Advisory Board and CDFI industry representatives to develop a smart way to increase access to capital in depressed areas. As Chairman of the Community Development Advisory Board, and as CEO of a CDFI in one of the nation’s most distressed regions, I am among the many CDFIs that are eager to work with the Treasury in its efforts to stimulate jobs in America’s hardest hit communities.”


CDFI Fund Advisory Board Chairman Bill Bynum

The Treasury Department press release can be viewed here: Press release.




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