logo
    • Magazine
    • Membership
    • Donate
  • Racial Justice
  • Economic Justice
    • Collections
    • Glossary
  • Climate Justice
  • Health Justice
  • Leadership
  • CONTENT TYPES
  • Subscribe
  • Webinars
    • Upcoming Webinars
    • Complimentary Webinars
    • Premium On-Demand Webinars
  • Membership
  • Submissions

Nonprofit Newswire | How Main Street Can Survive Without Wall Street

Rick Cohen
October 12, 2010
Share
Tweet
Share
Email
Print

October 8, 2010; Source: Los Angeles Daily News | The CEO of Los Angeles LDC, Inc. makes a strong argument in this article for the role of Community Development Financial Institutions (CDFI’s). He argues that the reliance on traditional commercial banks for economic development lending was misplaced. A commercial bank’s first priority is, “not to promote economic development with lending that they consider ‘risky’, but to take deposits, make short-term loans, and produce returns for shareholders,” says Banner. The result, he says, is that bank loans to credit-worthy businesses have dropped $40 billion between the second quarter of 2008 and the first qarter of 2010, despite TARP and ARRA grants.

For economic development on “Main Street,” Banner suggests that nondepository CDFI’s can play a role by providing microloans and Small Business Administration loans and by arranging Industrial Development Bonds. We agree that there is a significant, demonstrable upside by putting government money into and through CDFI’s to stimulate local economic development activities. But no one should read Banner’s argument or our endorsement of CDFI’s as letting the big TARP-subsidized banks off the hook.

Sign up for our free newsletters

Subscribe to NPQ's newsletters to have our top stories delivered directly to your inbox.

By signing up, you agree to our privacy policy and terms of use, and to receive messages from NPQ and our partners.

The fact that bank financing dried up after the market collapse and hasn’t hugely revived despite the combination of federal subsidies made available to them is an intolerable consequence of a lack of governmental oversight and inattentiveness. We think CDFI appropriations should double, triple, or quadruple, SBA loan limits should be increased, philanthropy should put Program Related Investment’s and Mission Related Investments’s into CDFI’s, but no one should let the big banks off the hook for their responsibilities to the American economy.—Rick Cohen

 

Share
Tweet
Share
Email
Print
About the author
Rick Cohen

Rick joined NPQ in 2006, after almost eight years as the executive director of the National Committee for Responsive Philanthropy (NCRP). Before that he played various roles as a community worker and advisor to others doing community work. He also worked in government. Cohen pursued investigative and analytical articles, advocated for increased philanthropic giving and access for disenfranchised constituencies, and promoted increased philanthropic and nonprofit accountability.

More about: Nonprofit News

Become a member

Support independent journalism and knowledge creation for civil society. Become a member of Nonprofit Quarterly.

Members receive unlimited access to our archived and upcoming digital content. NPQ is the leading journal in the nonprofit sector written by social change experts. Gain access to our exclusive library of online courses led by thought leaders and educators providing contextualized information to help nonprofit practitioners make sense of changing conditions and improve infra-structure in their organizations.

Join Today
logo logo logo logo logo
See comments

summer_sidebar_subscribe
You might also like
What is Climate Psychology? An Interview with Climate Psychology Alliance’s Rebecca Weston
Rebecca Weston and Iris M. Crawford
Ruling on Affirmative Action Could Affect Hiring
Isaiah Thompson
The Great Integration Question
Saphia Suarez
Preserving Places of Belonging in Asian America: The Value of Community Voice
Seema Agnani
Economic Justice: Nonprofit Leaders Speak Out
Dr. Akilah Watkins, Nelson I. Colón, Jon Pratt, Marla Bilonick, Clara Miller, Seema Agnani and Gary L. Cunningham
What Can a COVID Outbreak at a Writing Conference Teach Us about Community Care?
Alison Stine

NPQ Webinars

Oct 5th and 6th, 2:00 PM ET

Mastering QuickBooks 2023

Advanced QuickBooks for Nonprofits for Online Users

Register Now
Oct 26th, 2:00 PM ET

Becoming A Great Manager

How to Conspire and Align with the People You Lead

Register Now
You might also like
AOC’s “Tax the Rich” Dress Dazzles Met Gala, while...
Anastasia Reesa Tomkin
Foundation Giving Numbers for 2020 Show 15 Percent Increase
Steve Dubb
Strike MoMA Imagines Art Museums without Billionaires
Tessa Crisman

Like what you see?

Subscribe to the NPQ newsletter to have our top stories delivered directly to your inbox.

See our newsletters

By signing up, you agree to our privacy policy and terms of use, and to receive messages from NPQ and our partners.

Summer 2023 issue

Independent & in your mailbox.

Subscribe today and get a full year of NPQ for just $59.

subscribe
  • About
  • Advertise
  • Careers
  • Contact
  • Copyright
  • Funders
  • Magazine Art

We are using cookies to give you the best experience on our website.

 

Non Profit News | Nonprofit Quarterly
Powered by  GDPR Cookie Compliance
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.

Strictly Necessary Cookies

Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.

If you disable this cookie, we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again.