Rep. Tulsi Gabbard Introduces Bill to Encourage Investment in Small Business, Local Agriculture

Press Release

Rep. Tulsi Gabbard (HI-02) introduced H.R.5612, The Small Business and Community Investments Expansion Act, which will allow certain community development financial institutions (CDFIs) and credit unions who are members of a Federal Home Loan Bank to finance small business, agricultural, and community development activities.

"Community financial institutions and credit unions reach underserved communities across the country. Small businesses and farmers are the backbone of our nation and vital to America's economic well-being," said Rep. Tulsi Gabbard. "This bill will boost the ability of local financial institutions to provide entrepreneurs, farmers and families with the resources that will help strengthen communities across the nation."

"Hawai"i credit unions are grateful for Congresswoman Tulsi Gabbard's leadership role in introducing this bill. If enacted, this legislative measure will provide more funding sources for community development, small businesses, and agriculture -- all of which are important for Hawai"i's economic viability. Access to long-term advances from the Federal Home Loan Bank would bring parity with banks to credit unions and community development financial institutions in meeting their liquidity needs." said Dennis K. Tanimoto, President & Chief Executive Officer, Hawaii Credit Union League.

"Greater access to capital allows CDFIs to do more in underserved communities. OFN supports this legislation which opens new doors for non-depository CDFIs to pledge additional types of collateral and receive advances from the Federal Home Loan Bank System," said Jennifer A. Vasiloff, Chief External Affairs Officer, Opportunity Finance Network.

"CDFIs are increasingly investing in some of the poorest communities in America -- where poverty is over 30 percent or median incomes are under 60 percent of the area median. Further compounding issues of poverty, these urban neighborhoods and rural communities typically lack access to affordable financial services, especially with the growing trend of community bank closures," said Bob Rapoza, spokesperson of the CDFI Coalition. "The CDFI Coalition applauds Congresswoman Gabbard's introduction of this bill, which would allow CDFIs to access important resources from Federal Home Loan Bank. This capital will, in turn, create affordable housing; improve education, childcare, healthcare and healthy food access, grow small business opportunities and create jobs that benefit low-income communities and people served by CDFIs nationwide."

Source