Donald Riegle: “In fact, in my home State of Michigan, officials in Wayne County are working to establish a CDFI. As in Wayne County…”

“In fact, in my home State of Michigan, officials in Wayne County are working to establish a CDFI. As in Wayne County, governmental entities can assist in establishing a CDFI by providing planning, financial, and technical assistance, but most importantly--by providing leadership and getting other organizations and private investors on board in supporting a local CDFI. The purpose of this legislation is to create a national network of independent, market-oriented institutions that have the ability to respond quickly and efficiently to market opportunities in distressed communities. Governmental entities, while very effective in promoting community development in many circumstances, generally speaking, they are not flexible enough to respond to quickly changing economic forces. CDFI's are a new hybrid-type of organization that have been found to be highly effective in restoring market forces in distressed communities. They combine the market orientation of for-profits with the commitment to distressed communities typical of government and nonprofits. CDFI's are not intended to supplant the activities of government--they will complement them. In communities that already have CDFI's, these organizations work effectively in partnership with government. They are another tool to help localities eradicate poverty.”