• rick cohen

    For some reasons, comments posted on the Cohen Report website don’t seem to make it to the articles posted on the front page of the NPQ website, so I’ll continue my practice of reposting comments myself. Here’s one that came in on the website: POSTED BY Selma Taylor, AT: 02/04/2009, AT 1:51 am

    Where is the funding in the stimulus plan for economic development non profits – those groups that are community based lenders picking up the slack for the “credit freeze” put on by the banks and also proving the non profits who are providing management support to stabilize businesses in transition during this recessionary period?

    My response? If you compare the continuing unwillingness of the banking community to lend money–despite having received billions in investment through TARP–to the willingness of Community Development Financial Institutions (CDFIs) to put money onto the street, it looks to me like that federal investment in CDFIs is warranted and should be pushed. Moreover, CDFIs and other community development intermediaries (regrantors, TA providers, NMTC packagers, etc.) provide assistance to businesses in the very communities that are hardest hit by the recession. If stimulus is also seen as community revitalization (especially in the wake of the subprime mortgage foreclosure devastation), stimulus moneys going to CDFIs should be explored. And note that unlike banks that are likely to sit on a big chunk of the moneys they get, even if they weren’t freezing their lending, CDFIs generally put their money on the streets fast, finding little value to them or their funders in sitting on the money.