I thank the Chairman for holding this important hearing.

The Community Development Financial Institutions Fund was established in 1994 to provide a source of small business and housing loans in economically distressed urban and rural areas. The original authorization was for 4 years. Congress must now determine whether the program warrants continued funding.

Since 1995 the CDFI has received $225 million in appropriations. The program has a mixed track record and numerous questions have been raised about its effectiveness and grant selection procedures. I am particularly interested in the documented level of new business formation that can be traced to the program. I look forward to hearing from our witnesses.

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