In the midst of the current national dialogue about the global economic crisis and how to resolve it, it is important that we not forget Americans living in distressed low-income communities across this nation. Now more than ever, the monetary awards and tax credits provided through the CDFI Fund's programs and the resulting investment capital and financial services made available to these low-income communities by CDFIs and CDEs are critically important.
To better understand the impact of the financial crisis on the institutions supported by the CDFI Fund and the communities that they serve, and to also explore how the CDFI Fund might respond, I am pleased to announce the formation of a new Subcommittee which will report to the CDFI Fund's statutorily mandated Community Development Advisory Board1 (the Advisory Board).
Specifically, the purpose of this Subcommittee is to gather information2 that will be conveyed to the full Advisory Board, who will in turn advise the CDFI Fund on policy and program recommendations it might consider related to the impact of the current global financial crisis on the institutions that the CDFI Fund supports (i.e., the flow of capital to CDFIs, Community Development Entities and recipients of Bank Enterprise Awards) and the communities that they serve. Knowing that the financial system is dramatically changing, the CDFI Fund needs to ensure that it is in a position to help lead our key stakeholders through this crisis and into a vibrant future.
To prepare its recommendations for presentation to the Advisory Board, the Subcommittee will gather information to formulate its thinking based on input from our key stakeholders, trade associations and other experts in the community development finance field.
Anyone who would like to have the Subcommittee consider a written statement must submit it to the CDFI Fund's Office of Public and Legislative Affairs by 5:00 p.m. EST on Tuesday, December 16, 2008. Statements should be sent by e-mail to AdvisoryBoard@cdfi.treas.gov.
The Subcommittee will convene on Friday, December 19th in Washington, D.C., where it will meet with representatives from the trade associations and other experts. This event is by invitation only.
From mid-December through mid-January, the Subcommittee will discuss the various input received from industry experts and representatives to formulate policy and program recommendations for presentation to and deliberation by the full Advisory Board, which will meet in Washington, D.C. on Thursday, January 15, 2009.
As always, this Advisory Board meeting will be open to the public, although participation in the discussions will be limited to Board members and Department of the Treasury staff. Please visit the CDFI Fund's website in early January for more detailed information about this meeting.
In closing, I strongly encourage each of you to participate in this important process.