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- Fund a federal capital access program (CAP) through the U.S. Treasury Department’s Community Development Financial Institutions Fund (CDFI Fund) for a loan loss reserve for small business.
Read more recommendations - A CAP would secure loans and provide financing for businesses and nonprofit organizations that face barriers in accessing capital or that fall outside the guidelines of conventional lending.
Read more recommendations - Increase federal funding for microfinance, principally through the CDFI Fund and the New Markets Tax Credit but also through the U.S. Small Business Administration, the U.S. Department of Housing and Urban Development, the U.S. Commerce Department, and the U.S. Economic Development Administration.
Read more recommendationsInvesting in community development financial institutions (CDFIs) is a sound investment of scarce federal resources. - Revise rules to make CDFIs eligible to participate in other existing federal programs designed to create jobs and economic development, including programs such as the U.S. Small Business Administration’s Express Loan Program that guarantees 50 percent of loan capital on loans up to $350,000.
Read more recommendationsThis loan capital would give more CDFIs a chance to grow and secure their portfolios. - Convert taxes due (capital gains tax) when community development venture capital investments are liquidated to equity to provide an added incentive to investors.
Read more recommendations - Create and fund a small business equity fund to target economically and socially disadvantaged entrepreneurs following a Federal Emergency Management Agency-declared disaster. The fund could be managed by the CDFI Fund in concert with certified CDFIs in the markets affected by the disaster.
Read more recommendations