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Statement from Director Gambrell on Treasury Announcement Related to the Capital Purchase Program for CDFI Banks
November 17, 2008
Washington, DC - Community Development Financial Institutions (CDFI) Fund Director Donna Gambrell issued the following statement on the U.S. Treasury Department’s issuance today of the Capital Purchase Program Term Sheet.
"In this economic crisis, it is important that we not forget that Americans living in distressed and underserved communities need our continued efforts to offer them financial services now more than ever,” said Director Gambrell. “Treasury’s announcement today will provide CDFI banks, and Minority Depository Institutions that are certified as CDFIs, with critically needed capital to continue their responsible lending activity to low-income and minority populations. I am happy that we were able to closely work within Treasury to address this important segment of the financial services industry."
Banks that are certified as CDFIs and that utilize the Capital Purchase Program (CPP) have committed to using CPP funds as lending capital for borrowers financing projects and activities such as small businesses, developing and operating community facilities such as day care centers, or constructing and financing housing in our nation’s low-income communities.
With the contraction in the credit markets, CDFI banks will be sought after more than ever by low-income individuals and businesses as a source of capital to finance investments in low-income communities. The announcement today by the Treasury Department will support their capacity to carry out this important responsibility.
For more detailed information on certification as a CDFI for banks, thrifts and bank holding companies, please visit: CDFI Certification for Banks, Thrifts, and Depository Institution Holding Companies Applying to the Capital Purchase Program
Links related to today’s Treasury Department Announcement:
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[CDFI-2008-50]
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