Low-income Coloradans could lose small business funding under budget proposal

Denver’s Colorado Enterprise Fund (CEF) is warning that important funding for low-income communities in Colorado is at risk under President Donald Trump’s 2018 budget proposal. The Community Development Financial Institutions (CDFI) Fund has issued $40.3 million to Colorado’s 15 CDFIs, including CEF. 

Local CDFIs are able to leverage every $1 in federal funding with up to $12 in private investments from banks, foundations and other funding partners, explains CEF President CEF Ceyl Prinster. “The total economic impact of CDFI grants in Colorado is as much as $480 million supporting businesses, affordable housing and nonprofit community projects.” Under the budget proposal all that economic development could be at risk as the Trump Administration has proposed slashing CDFI’s, says CEF President CEF Ceyl Prinster. 

“CEF was the first mission-driven lending organization in Colorado certified by the CDFI fund in 1996 to serve low-income and minority populations. Over the last two decades, CEF has leveraged $8.5 million in CDFI fund awards to loan more than $58 million, financing nearly 2,000 small businesses in our state,” Prinster states.

The fund has a national budget of just $250 million, Prinster asserts that the CDFI fund costs each American just 79 cents annually.

“CDFIs fill a vital need in the nation’s financial services eco-system by serving communities and market sectors that conventional lenders cannot,” Prinster says. “The ultimate goal of CDFIs is to bring their customers into the mainstream economy as bankable businesses, home owners and/or individuals.”

Indeed, the fund has the support of major banking associations, including the American Bankers Association, who have issued a letter to Congress in support of the CDFI fund.
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Read more articles by Chris Meehan.

Chris is a Denver-based freelance writer, editor and communications specialist. He covers sustainability, social issues and other topics.
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