Meeks Includes Amendment to Fund CDFI’s Small Dollar Loan Program

Washington, DC - Today, Congressman Gregory W. Meeks, Chair of the Consumer Protection & Financial Institutions Subcommittee, issued the following statement regarding the inclusion of his amendment in the passed Financial Services and General Government appropriation:

"In the Financial Services and General Government appropriation, I am proud to have included my amendment for $10 million to fund the Dodd–Frank Wall Street Reform and Consumer Protection Act's Small Dollar Loan Program. This program, which is administered by the US Department of the Treasury's Community Development Financial Institutions Fund (CDFI Fund), will go a long way towards helping out individuals and families living paycheck to paycheck. Four in ten Americans don't have the savings to cover an unexpected $400 expense, forcing many to turn to high-interest small dollar loan products like payday lending.

Community Development Financial Institutions can provide alternatives to these high-interest, small dollar loans. Section 1206 of Dodd-Frank authorized the CDFI Fund to provide financial assistance for the creation of loan loss reserves to support small dollar loan offerings among CDFIs, including certified banks and credit unions. The program has the potential to help individuals build credit, access affordable capital and enter the mainstream financial system. With the passage of my amendment, the CDFI Fund small dollar loans program will be funded for the first time since its authorization in Dodd-Frank, almost a decade ago, and will give hard-working Americans access to more affordable, safer, and more financially sustainable small dollar loan products."

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