CDFIs Stepped Up During the Shutdown

line drawing of a hand
‘Helping hand.’ Image by Marco ColÍin via flickr, CC BY-NC 2.0.

When I was on the board of the Community Loan Fund of the Capital Region, I remember being struck to learn that along with small business loans and affordable housing development and nonprofit facility financing that we often made cash flow loans to nonprofits. Many organizations providing all sorts of crucial services would get government contracts, but wouldn’t get paid in time to, oh say, make payroll or pay rent. The loan fund covered the gap. It wasn’t as exciting to report out at the end of the year as number of jobs created or housing units developed, but it sure was important.

So it’s no surprise to me to learn that CDFIs across the country were trying to do what they could to ease the effects of the recent government shutdown. From the Opportunity Finance Network, here’s a partial list of the kinds of things they were doing:

These kinds of things show how important CDFIs are—and how important it is that we allow our community lenders flexibility to respond to time-sensitive needs.

But of course this was by no means enough to make up for the harm and fear caused by the shutdown, both for individuals and organizations. CDFIs can help with interim measures in a crisis, but there’s no substitute for a capable, reliable government to carry out the work of running the country and maintaining a fair, safe, and compassionate society.

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