Alternative Funding Sought ByCDFIs

WASHINGTON - (02/14/05) -- Leaders of the community developmentfinancial institutions movement were urged to find new sources ofcapital in light of the Bush Administration's plans to slashfunding for the popular CDFI program. "You really need to strutyour stuff," to alternative funding sources like privatefoundations, philanthropies and newly endowed individuals, DebraSchwartz, program director for the MacArthur Foundation, toldattendees to the CDFI Institute here Friday. The CDFI meeting,coming a few days after the Bush Administration announced plans toeliminate new CDFI funding, was in stark contrast to a meeting justdown the hall in the Capital Hill Hyatt where the National DefenseIndustrial Association was celebrating broad increases in defensefunding. Arthur Garcia, director of the CDFI Fund, emphasized toattendees that the Bush Administration's proposal is for next year,the federal government's fiscal 2006, and the fund will another $55million--about the same as last year--to award in this year'sround, most of for grants and loans to credit unions and otherCDFIs.