‘That’s going to be a problem’: Federal cuts jeopardize Silicon Valley community funders

COMMUNITY FINANCIAL INSTITUTIONS are the backbone to a healthy society, providing loans for small businesses, disaster recovery, low-income families, immigrant communities and affordable housing developments. That essential service is now in danger.

President Donald Trump’s executive order to dismantle the Community Development Financial Institutions Fund (CDFI) last month put a target on these institutions and brought to surface the role they play. Even though CDFI activities are protected by law, and therefore cannot be eliminated, potential staff cuts still pose a risk to the fund that oversees grants for community development, experts said.