At Ampersand, we specialize in deposit management and are proud to collaborate with financial institutions across the U.S., including community banks and Community Development Financial Institutions (CDFIs). With the recent announcement of CDFIs’ inclusion in the executive order titled “Continuing the Reduction of Federal Bureaucracy,” we would like to highlight the value these institutions bring to our nation’s communities. We welcome the opportunity to explain why supporting CDFIs remains a smart, strategic investment for our economy.
CDFIs are the lifeblood of many underserved communities across the United States. These mission-driven institutions provide critical access to capital and financial services in areas often overlooked by traditional banks. By offering loans, investments, and tailored support, CDFIs empower entrepreneurs to launch and grow businesses, create jobs, and drive economic vitality. They also enable affordable mortgages and homeownership, fostering wealth-building and stability in regions that need it most.
We firmly believe that ensuring CDFIs remain adequately funded supports both job creation and economic development, particularly in underserved areas we want to see thrive without heavy reliance on additional government subsidies. The CDFI Fund’s data underscores this impact: every dollar invested in CDFIs leverages eight dollars in private funding, amplifying public resources exponentially. This multiplier effect demonstrates how CDFIs deliver meaningful change while embodying fiscal responsibility—a model of efficiency in taxpayer dollar allocation.
Moreover, supporting community banks and CDFIs could reduce long-term dependence on government assistance. By cultivating self-sustaining economic ecosystems, CDFIs empower individuals and businesses to flourish independently, aligning with Ampersand’s values of resilience and self-reliance. This approach offers a sustainable alternative to traditional aid, potentially lessening the need for broader public funding over time.
As the new executive order threatens CDFI funding cuts, we urge policymakers to recognize the indispensable role these institutions play in fostering economic growth and community resilience. At Ampersand, we remain steadfast in our commitment to partnering with community banks and CDFIs to optimize cash deposits—balancing rate, safety, and values alignment—while contributing to the vitality of underserved communities. In an era of fiscal scrutiny, CDFIs prove that targeted investments can yield widespread, lasting benefits.
Learn how Ampersand can help your organization reduce risk and safely manage your deposits. Contact Ampersand to get started.
