Latest news with #CDFIs
Forbes
22-04-2025
- Business
- Forbes
What's At Stake For OFN In Its $2.9 Billion Fight With The Trump Administration
Renewable Energy - Climate Change Policy This Earth Day, amid renewed calls for climate action and community reinvestment, a legal battle is unfolding that could shape how the U.S. funds its green economy—and who benefits from it. Earlier this month, Opportunity Finance Network (OFN), a national network of more than 400 community development financial institutions (CDFIs), filed suit against the U.S. Environmental Protection Agency (EPA) for what it describes as the unlawful suspension of $2.9 billion in federal funding previously awarded through the Greenhouse Gas Reduction Fund (GGRF). These funds were intended to be deployed through mission-driven lenders to support clean energy financing and small business investment in historically underserved communities. The lawsuit raises more than procedural concerns. It asks whether federal agencies can withhold congressionally authorized funds without public explanation—and what that means for nonprofit and community-based organizations increasingly called upon to implement climate solutions on the ground. The implications for entrepreneurship and small business development are particularly striking. Under OFN's proposed model, the $2.9 billion in EPA funds would have flowed through CDFIs to finance solar installations, green infrastructure, and other energy projects—not only reducing carbon emissions but also creating thousands of contracting, installation, and service jobs for small business owners, particularly those in low-income or disadvantaged areas. Many of these entrepreneurs, often excluded from traditional banking channels, stood to benefit directly from a clean energy economy that was finally designed with them in mind. Now, those opportunities are in limbo. In its official statement, OFN called the freeze 'an unlawful and irresponsible decision that threatens billions in private sector capital and thousands of new jobs,' and emphasized that it 'undermines one of the most significant investments in environmental justice and economic inclusion in our nation's history.' This legal fight is happening against the backdrop of broader political pressures on climate and equity-focused nonprofits. As Reuters recently reported, several major climate organizations are bracing for heightened scrutiny under a potential second Trump administration, including potential investigations into their tax-exempt status. While some lawmakers, such as Rep. Lee Zeldin, have publicly denied any targeting, the concern alone is having a chilling effect across the field. So what happens next? Will this case establish legal safeguards for mission-driven implementers of federal funding? Or does it foreshadow a more precarious environment, where political shifts can stall billions in clean energy investments—and the small businesses that rely on them? Earth Day is often a time for reflection on environmental goals. But this year, it may also prompt a deeper inquiry: What good is a climate investment strategy if the funds can be paused without warning? And what happens to small businesses, community lenders, and workforce partners who structured their growth around a now-frozen pipeline? This is no longer just a matter of environmental justice. It's a question of economic stability, contractual trust, and the future of public-private partnerships in delivering climate and economic solutions—particularly to communities that have historically been last in line. As the court considers OFN's claims, many in the field will be watching for more than a verdict. They'll be searching for a signal that the rules of engagement for mission-aligned funding are still intact.
Yahoo
17-04-2025
- Business
- Yahoo
New loans to help Latino-owned businesses off the ground
GRAND RAPIDS, Mich. (WOOD) — Kent County has approved a $1.2 million grant to help provide loans to Latino entrepreneurs. 'It's a turning point for our Latino businesses,' Melissa Boughner, the president of the , said. The Hispanic Center made the announcement at its headquarters Thursday morning. The loans aim to give new and emerging Latino business owners a helping hand to grow and thrive. 'It is incredible to receive support from Kent County at this level,' Boughner said. 'It's quite the statement to say, 'We believe in the Latino community. We know the impact they have. We can't ignore it. We want them to continue to be a prosperous part of our community.'' How local groups address needs of fast-growing Hispanic population The goal is to help entrepreneurs who don't qualify for traditional loans at the bank, whether it's because of their financial history or because of language barriers. Starting Monday, those interested can call the Hispanic Center and be screened for the loan that best fits their needs. The loans range from $1,000 to $250,000. The Hispanic Center is teaming up with two community development financial institutions, known as CDFIs, that support undeserved communities. 'It's really to get you to that next level to be bankable,' said Alexis Hill, a loan officer for Opportunity Resource Fund, a CDFI part of the program. 'So you can get that generational wealth and grow your business. A lot of these businesses can be stunted just because they can't have access to capital.' New Hispanic Chamber HQ plans aim to exemplify 'vibrancy of community' It's not just the money. Business owners can also get marketing, literacy and technical help that's in Spanish. As West Michigan's Latino population continues to grow, the Hispanic Center hopes these efforts will create more opportunities for the community to build lasting wealth and stability. 'In the midst of everything happening in our nation, this is good news for our Latino community and for us at the center,' Boughner said. More information is available on the Hispanic Center's website. While only Kent County residents are eligible for this program, Boughner said the Hispanic Center plans to launch other initiatives soon to help Latinos across West Michigan, including on the lakeshore. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
14-04-2025
- Business
- Yahoo
Trump Administration's Push To Cut CDFI Funding Faces Bipartisan Backlash as Rural Homebuyers Risk Losing Critical Support
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. The Trump administration recently made a decision that could have negative consequences for a large segment of homebuyers traditionally not reached by big banks. President Donald Trump issued an executive order on March 14 to cut funding for the Community Development Financial Institutions Fund. Per the executive order, the multi-billion dollar program will see 'personnel' and 'function' cuts, reducing them to only what's legally necessary. Don't Miss:Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – CDFI, which was launched 1994, provides funds to rural areas underserved by big banks. These communities are traditionally in lower-income areas of the country. Pravina Raghavan, director of the Community Development Financial Institutions Fund, explains the fiscal 2024 impact to Financial Assistance awards was over $408 million. FA awards provide capital for CDFIs to finance affordable housing and increase homeownership among other services in low-income and distressed communities. After the executive order was issued, there was a swift response from both Democratic and Republican representatives. A letter co-authored by Sens. Mike Crapo (R-ID) and Mark Warner (D-VA), among others to Treasury Secretary Scott Bessent reaffirmed their support for the CDFI Fund, referencing its positive economic impact. Trending: BlackRock is calling 2025 the year of alternative assets. Bessent said during his confirmation hearing earlier this year that he supported CDFIs. He said they played a "very important" role in their target communities. Through the inception of the fund through February, Arkansas and South Carolina, two states that have voted for Republican presidential candidates since 2000, have received $3.2 billion, and $1.7 billion, respectively. Rep. French Hill (R-AR) and Sen. Tim Scott (R-SC) have been strong proponents of the fund in the past. In the letter to Bessent, the Defense Credit Union Council mentioned that a cut to the CDFI would impact 495 CFDI-backed credit unions, providing services for millions of U.S. to the CDFI's annual report for fiscal 2024, funding was the highest it has ever been to date and yet, still did not fulfill all of the requests received. "CDFIs play a key role with FHFA and our regulated entities in efforts to address the nation's affordable housing challenges, working on the ground in their communities to deliver positive outcomes for underserved households," then-Federal Housing Finance Agency Director Sandra L. Thompson said in November. If the executive order stands, there would be an even greater disparity between requests for funding and resources allocated. Read Next: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — , which provides access to a pool of short-term loans backed by residential real estate with just a $100 minimum. Send To MSN: 0 This article Trump Administration's Push To Cut CDFI Funding Faces Bipartisan Backlash as Rural Homebuyers Risk Losing Critical Support originally appeared on
Forbes
04-04-2025
- Business
- Forbes
Celebrating AANHPI Heritage Month & The Native CDFI Capital Access Convening
As we celebrate Asian American, Native Hawaiian, and Pacific Islander (AANHPI) Heritage Month this May, we recognize the critical role Native Community Development Financial Institutions (CDFIs) play in fostering economic resilience and self-determination across Indigenous communities. This year, Oweesta Corporation's Native CDFI Capital Access Convening (CAC) in Hawai'i brings together Native CDFIs, Native-led organizations, funders, investors, and partners to tackle pressing challenges, share strategies, and strengthen our collective commitment to financial empowerment. More than just a conference, the CAC is a gathering of changemakers highlighting the success of the Native CDFI movement—and celebrating innovation, resilience, and the power of Native-led community development. With this year's event coinciding with AANHPI Heritage Month, it is the perfect time to amplify the voices and successes of Native CDFIs and Native Hawaiian leaders who are driving impact in their communities. The Boyd family with the Hawaiʻi Community Lending team. Hawai'i Community Lending Team This year's convening is anchored in the theme: Resilience. Abundance. Kōkua. These values reflect both the lived experiences and future aspirations of Native communities. Resilience honors the strength of Indigenous peoples who continue to build through generations of displacement and economic exclusion. Abundance shifts the narrative from scarcity to prosperity, imagining what becomes possible with sustained investment in Native communities. And kōkua—the Native Hawaiian word for support—underscores our shared responsibility to uplift one another in the work of community-building and economic justice. What Makes Native CDFIs Unique Native CDFIs are mission-driven financial institutions designed to serve Native American, Alaska Native, and Native Hawaiian communities that have been historically excluded from mainstream banking systems. These organizations operate with a deep understanding of their communities, offering not only financial products but also culturally grounded technical assistance, credit counseling, and entrepreneurship training, among other services; responsive to community needs. Their work helps build generational wealth, strengthen Tribal sovereignty, and close persistent gaps in access to capital. In Native Hawaiian and Pacific Islander communities in Hawaii, where the cost of living is high and access to traditional finance is limited, the role of Native CDFIs is particularly critical. Why the Native CDFI CAC in Hawai'i Matters For Native Hawaiian leaders, the opportunity to convene in Hawai'i provides a powerful moment of connection, strategy-building, and solidarity. The CAC creates a space for Native CDFIs from Native nations across the U.S. to learn from one another and to celebrate solutions rooted in cultural values, land stewardship, and economic self-determination. Jeff Gilbreath, Executive Director of Hawaiʻi Community Lending, shared his reflections on the importance of this year's gathering. Leadership Rooted in Place The CAC is more than policy panels and funder roundtables—it is a space for cultural exchange, relationship-building, and sharing innovative strategies. That includes examples like community land trusts, grant-blended capital solutions, trauma-informed development services, and other solutions that reflect Indigenous values. Holding the convening in Hawai'i this year offers a chance for other Native leaders to experience firsthand how Native Hawaiian CDFIs lead with aloha and ground financial solutions in place-based values. Pakini Loan Fund Team Pakini Loan Fund Pakini Loan Fund, having attended previous convenings in Alaska and New Mexico, expressed their excitement about this year's event as an opportunity to share their Native Hawaiian culture with their Native American 'ohana in a way that fosters deeper connections and community. They shared, 'With this year's convening in Hawai'i, we're excited to be able to share our Native Hawaiian culture with our Native American 'ohana in a way that, we hope, will build a sense of community and togetherness for our native cultures, especially in these exceptionally challenging times.' If Native communities are 'invisible' to the wider community, then Native Hawaiians are often the 'invisible of the invisible' and holding an event in their homelands lifts their work up on a national scale. The Impact of Native CDFIs: A Story of Resilience and Homeownership A powerful example of this impact comes from Hawai'i Community Lending (HCL), which helped the Boyd family achieve homeownership despite facing financial hardship. Kevin Boyd, an entrepreneur, and his wife, Alycia, struggled during the COVID-19 pandemic. When they received their residential lease award from the Department of Hawaiian Home Lands, they turned to HCL for support. Kevin Boyd in front of his house during the building process. Hawai'i Community Lending Team Their path to homeownership was filled with financial barriers, but HCL provided the comprehensive assistance they needed: Today, the Boyds live in their home in the Anahola homestead on Kaua'i, paying just $1,087 per month—a fraction of what they previously spent on rent. Their story illustrates the transformational work Native CDFIs make possible. Unlike traditional lenders, who often wrongly see financing in Indigenous communities as too complex or risky, Native CDFIs have the flexibility and willingness to bundle available resources into custom solutions for the best deals for their clients. This type of creative, hands-on financial structuring is exactly what sets them apart. Without them, many Native families would be left with few, if any, viable options for securing safe and affordable housing. A Moment to Celebrate and Mobilize As we celebrate AANHPI Heritage Month, we honor the leadership, creativity, passion, and cultural resilience in Native Hawaiian, Pacific Islander, and Indigenous communities across the country. Their work is about more than dollars and deals—it's about justice, identity, and community-led change. The CAC is a testament to the power of culturally grounded finance and the transformative impact it can have on generations to come. It is also a call to action. It invites funders, policymakers, and investors to go beyond transactions and into transformation. Native CDFIs are not asking for charity—they are demonstrating what economic self-determination looks like when capital is in Native hands. As Chrystel Cornelius, CEO of Oweesta Corporation, reminds us, 'Now is the moment to lean in - to lead boldly with culture at the center, and to ensure our communities have the capital they need to build the futures they envision.' Here's to celebrating AANHPI Heritage Month with a vision that goes beyond recognition—toward investment, collaboration, and the shared work of building thriving Native futures.
Forbes
26-03-2025
- Business
- Forbes
Meeting CRA Goals Is Now A Growth Opportunity, Not A Compliance Burden
The Community Reinvestment Act (CRA), established nearly 50 years ago, requires financial institutions to address the needs of the communities in which they operate, particularly in low- and moderate-income (LMI) neighborhoods. This includes providing loans to small businesses with annual revenues under $1 million. This initiative is undoubtedly commendable. However, fulfilling CRA requirements places considerable pressure on banks that operate manually to meet these needs. Fortunately, advancements in banking technology now offer solutions to this issue. While lead-generation models have long been available to increase loan volume, the targeting mechanisms have obvious flaws. Recent innovations enable banks to reduce underwriting costs and effectively match the geographic filtering necessary for CRA credit. Could this be the turning point for banks to address their CRA challenges? Banks are typically assessed every three years to ensure they are CRA compliant, yet they continue to face difficulty in cost-effectively lending for CRA-eligible loans. The reasons are varied: They may not have a dedicated loan product or even team members skilled in this type of lending. Above all, the process is too manual. Over time, investing in Community Development Financial Institutions (CDFIs) or Minority Depository Institutions (MDIs), which serve traditionally underserved markets, has become commonplace. These organizations supply loan volumes that fuel secondary markets; allowing banks to buy a portfolio that satisfies a CRA need using census-tracked designation. While essential players in the lending ecosystem, these secondary markets present three main problems for banks: Isn't there an easier way? CRA lending is also a reputational imperative. While there are fines for non-compliance, banks are often just as fearful of gaining a poor reputation due to a substandard CRA rating. The pain points are broad across the organization. CRA officers and compliance teams worry about meeting CRA targets and maintaining the bank's reputation. Bank executives fear balancing growth with regulatory requirements. Lending teams worry about borrower acquisition, underwriting efficiency, and portfolio growth. Yet progress remains stagnant as the processes stay the same: paper-based loan reviews, ensuring approved SMBs wait an excruciating two to three months for funding. Over time, most banks have divorced the idea of satisfying their CRA requirement and supporting small businesses. They'll say, 'We have a team that meets CRA through secondary markets,' and 'We have a team responsible for small business.' But banks can do both things in concert. They can acquire new SMBs, serve existing depositors, and do so with an acute focus on the types of loans that will enable CRA compliance. It's time to overcome this obstacle once and for all. The industry has reached an inflection point. Financial institutions that can harness technology in multifaceted and systemic ways will win customer loyalty, improve customer experience, and ultimately increase their overall competitiveness. With technology, banks can now deploy excess deposits and acquire CRA relationships directly and naturally– making lending to small businesses cheaper, faster, and more efficient. By pairing targeted acquisitions (including geo matching on census tracts), pre-qualification of depositors, and policy automation, CRA lending is poised to become a growth opportunity, not a compliance burden. There's no need to reimagine an entire tech stack, but there's also little time to waste. Small businesses are the lifeblood of the economy and need capital to continue serving Main Streets across America. It's time to remove the excess barriers and let the capital flow where it needs to go.
