GAO Reports CDFI Fund Programs Proportionally Serve Rural Communities

Washington, DC  The Community Development Financial Institutions Fund (CDFI Fund) today released a study conducted by the United States Government Accountability Office (GAO) that examined whether the Community Development Financial Institutions Program (CDFI Program) and the New Markets Tax Credits Program (NMTC Program) were meeting goals set for proportionally awarding organizations that serve rural areas.

"The Community Development Financial Institutions and New Markets Tax Credit Programs in Metropolitan and Nonmetropolitan Areas study found that the CDFI Fund has met or exceeded its rural proportionality goals," said CDFI Fund Director Donna J. Gambrell. "This is a testament to the CDFI Fund's commitment to providing financing to revitalize all struggling communities, urban and rural alike."

U.S. House Report 112-136, referenced by the Consolidated Appropriations Act of 2012, requires that GAO conduct a study on the concentration of CDFIs and NMTCs in urban areas and comments on the extent that program design, administration, or history contributed to the early establishment of CDFIs in urban areas.

The GAO study finds that the CDFI Program has a successful review process and established goals of matching the proportion of awards to the proportion of qualified applicants that primarily serve nonmetropolitan areas. The GAO study also found that the NMTC Program has successfully implemented the provisions of the Tax Relief and Health Care Act of 2006, a requirement for the NMTC Program that nonmetropolitan counties receive a proportional allocation of qualified equity investments.

The full summary report can be found here. For more information about the CDFI Program, NMTC Program, or other CDFI Fund programs, please visit www.cdfifund.gov.