Community Development Financial Institutions need more money to meet the demands of the low-income communities that were disproportionately hurt during the recent economic downturn, Enterprise Corporation of the Delta and Hope Credit Union President/CEO William Bynum told lawmakers today.
Bynum, who chairs the Community Development Advisory Board, cited a recent survey showing that 56% of CDFIs surveyed had increased demand for financing because of declines in the flow of credit in other parts of the financial sector. He also noted in the last funding cycle, 200 high-scoring applications for program funding totaling $328 million had to be rejected because recent financing trends are keeping pace with capital demand.
He made his comments during an oversight hearing on the CDFI program held by the House Financial Services Committee.
CDFI Fund Director Donna Gambrell said that since it was created in 1994, the fund has made more than $1.1 billion in awards to CDFIs. As of Dec.18, 2009, there were 824 certified CDFIs.
Bynum said his credit union, which serves Arkansas, Louisiana, Mississippi and Tennessee, has generated $1.4 billion financing and assisted 71,000 individuals.