CDFI Industry Leader Praises Small Business Jobs Act

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Sep 27, 2010, 03:02 ET

PHILADELPHIA, Sept. 27 /PRNewswire/ -- Statement of Mark Pinsky, President & CEO of Opportunity Finance Network, the nation's leading CDFI network:

"The Small Business Jobs Act responds directly and effectively to the credit freeze that is hurting small businesses and costing them jobs. Provisions that ensure liquidity for CDFIs (community development financial institutions) will result in billions of dollars of new lending to small businesses in distressed markets. Congress and President Obama deserve credit for the trust they have in our nation's small business owners. This legislation will create jobs where we need them the most -- and help entrepreneurs who are struggling."

The Small Business Jobs Act signed by President Obama into law today is a coup for the CDFI industry and small business community, as it includes significant new resources for CDFIs. A new $30 billion Treasury Fund to support small business lending was created, as was a new Federally-guaranteed CDFI bond program, and a state small business credit initiative.

Highlights of the legislation:

The Small Business Loan Fund will provide up to $300 million to CDFIs doing small business lending.
The Bond legislation will provide up to $1 billion per year in CDFI bond authority.
The CAP program will help CDFIs -- and other small business lenders -- manage risk.
Other changes may benefit CDFIs as well, with changes in SBA's 7(a) and 504 programs, an increase in loan limits for microlenders, and a pilot small business intermediary lending program.

About Opportunity Finance Network

Opportunity Finance Network (OFN), the leading network of private financial institutions, creates growth that is good for communities, investors, individuals, and the economy. Members of OFN are community development financial institutions (CDFIs) who deliver responsible lending to help low-wealth and low-income communities join the economic mainstream. Over the past 30 years, the opportunity finance industry has provided more than $30 billion in financing to underserved markets nationwide. In 2008, OFN Members financed more than 200,000 jobs, 600,000 housing units, 50,000 businesses and microenterprises, and 6,000 community facility projects. More information is available at: www.opportunityfinance.net.

About CDFIs

As with mainstream lenders, a variety of institutions have emerged to serve the broad range of needs in emerging domestic markets. Although they share a common vision of expanding economic opportunity and improving the quality of life for low-income people and communities, the four CDFI sectors -- banks, credit unions, loan funds, and venture capital (VC) funds -- are characterized by different business models and legal structures. More information is available at: http://www.opportunityfinance.net/industry/industry_sub1.aspx?id=230

SOURCE Opportunity Finance Network