FROM THE OFFICE OF PUBLIC AFFAIRS

Treasury Secretary Robert E. Rubin on Thursday honored the recipients of the Community Development Financial Institutions (CDFI) Fund's 1998 awards.

The awards, totaling $75 million, were awarded to 190 banks, thrifts and community development financial institutions through the CDFI's Bank Enterprise Award Program and the CDFI Core Program and Technical Assistance Component.

"The CDFI Fund is an important part of the Administration's strategy to promote private sector growth in economically distressed areas," Secretary Rubin said to representatives of more than 100 of the recipients. "Filling niches in the private financing market and drawing mainstream financial institutions into low income communities through partnerships, CDFIs, banks and thrifts makes our financial system work better for all Americans."

The CDFI Fund's mission is to promote local economic growth and access to capital by directly investing in and supporting community development financial institutions and expanding financial service organizations' lending, investment, and services within underserved markets. For fiscal year 1999, Congress increased the CDFI Fund's appropriations to $95 million from $80 million in 1998. Since 1996, the CDFI Fund has provided $182 million to promote community and economic development and encourage private sector investment to underserved markets.

The CDFI Program leverages Federal dollars by requiring that each CDFI provide at least a one-to-one match with funds from non-Federal sources for each dollar of assistance it receives. In addition, CDFI award recipients are held to performance standards that help ensure that the CDFI Fund's investment will result in a significant community impact. Under the CDFI Fund, local organizations make the decisions about how to best meet community needs.