5 big analyst AI moves: Apple lifted to Buy, AI chip bets reassessed
Investing.com -- Federal Reserve Governor Michael S. Barr praised Community Development Financial Institutions (CDFIs) for their role in expanding economic opportunity in underserved communities during a pre-recorded video address at the Opportunity Finance Network Conference in Washington, D.C. on Wednesday.
Barr, who previously worked at the Treasury Department helping to establish the CDFI Fund, highlighted how these institutions provide credit in areas where mainstream finance has limited reach through "flexible underwriting, tailored lending, and deep community development relationships."
The Fed Governor shared observations from his travels across the country, noting CDFIs’ impact in rural areas like the Mississippi Delta where they’ve filled gaps left by closed bank branches. He also mentioned their support for small businesses in urban areas such as Atlanta by providing access to capital and skills development.
"CDFIs operate all over the nation, including in Indian Country," Barr said, highlighting innovative solutions like "seasonal payment structures for fishermen and loggers, accepting tribal distribution payments as collateral, or creating land buy-back loans."
Barr emphasized CDFIs’ role during economic downturns, including their support for homeowners during the foreclosure crisis and their rapid delivery of relief to small businesses during the COVID-19 pandemic.
"The story of the CDFI movement is one of persistence, creativity, and partnership—qualities that will serve us well in the years ahead," Barr concluded, noting that demand for CDFI services continues to grow.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.