People who were not
born in the United
States are more
likely than U.S.-born
residents to start and
own businesses.
Purestock
54? Chapter 1
n
have created 2,200 jobs and returned $64 million annually to their communities in payroll,
taxes, and rent.77
Nationwide, there are more than 900 CDFIs managing more than $50 billion in
assets.78 In 1994, Congress established the CDFI Fund to provide financial support to
CDFIs. Federally approved CDFIs must make at least 60 percent of their loans in low- and
moderate-income communities. CDFIs specialize in loans to borrowers who need a great
deal of technical assistance. Mark Pinsky, head of the Opportunity Finance Network, the
nation’s largest network of CDFIs, describes them as “profitable but not profit-maximizing,”
and calls them “responsible high-risk
lenders.” They are the antithesis of subprime lenders that have done so much to
undermine the stability of low- and moderate-income communities. CDFIs have
been viewed positively by both Democrats and Republicans, according to
Pinsky. “It doesn’t matter what political
stripe you are, if you understand that $1
of public money can be used to leverage
$10 to $20 in private money, there’s a lot
of bang for your buck.”79
A CDFI Bond Guarantee Program,
established under the Small Business
Jobs Act of 2010, authorized the CDFI
Fund to issue up to $1 billion annually
in long-term bonds at low-interest rates.
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