[Congressional Record Volume 140, Number 108 (Monday, August 8, 1994)]
[Extensions of Remarks]
[Page E]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: August 8, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
   CONFERENCE REPORT ON H.R. 3474, RIEGLE COMMUNITY DEVELOPMENT AND 
                   REGULATORY IMPROVEMENT ACT OF 1994

                                 ______


                               speech of

                           HON. LOUIS STOKES

                                of ohio

                    in the house of representatives

                        Thursday, August 4, 1994

  Mr. STOKES. Mr. Speaker, I rise today in strong support of the 
conference report on H.R. 3474, Community Development Financial 
Institutions. I want to take this opportunity to commend the chairman 
of the Banking Committee, Congressman Gonzalez, for his leadership and 
steadfast determination to bring this very important legislation 
through the Conference Committee, and to the House floor.
  The Community Development Financial Institutions Act is vital to 
promoting economic growth in communities all over the United States, 
especially communities like east Cleveland, and the city of Cleveland 
in my congressional district, as well as the city of San Antonio, which 
is represented by the gentleman from Texas. The bill establishes a 
wholly-owned government corporation, known as the Community Development 
Financial Institutions Fund, to provide financial and technical 
assistance to financial institutions which have community development 
as their primary mission, and serve an underserved area or population. 
The bill provides $382 million over 4 years in ``seed capital'' for 
banks, credit unions, and other lending institutions which are 
committed to serving low-income communities. Many of these institutions 
are presently unable to meet the financial needs of businesses and 
individuals in their communities due to a lack of adequate capital.

  The community development financial institutions fund, by relying on 
the existing infrastructure of non-profit alternative lenders already 
present in many communities, will produce more immediate results than 
establishing a network of community development banks from scratch. One 
of the many advantages of providing ``seed capital'' to alternative 
lenders is that the funds can often be used to leverage additional 
funding from banks and government agencies. Through the matching 
requirements in the legislation, lenders will have to assume more of 
the risk for loans to micro-enterprises, and disadvantaged businesses. 
This will in turn make community development projects funded through 
their seed money more attractive to traditional financial institutions, 
who are faced with regulations restricting the amount of high-risk 
loans they can make.
  Mr. Speaker, I am extremely pleased to give my support to this 
important and worthwhile legislation. This is an enormous step forward 
to revitalizing low-income and disadvantaged communities in our 
Nation's cities, and in rural areas. As a Member of Congress who has 
represented economically disadvantaged communities in Cleveland, Ohio, 
for the past 25 years in this House, I believe that passage of this 
legislation will bring about significant improvements in the lives of 
my constituents, and in turn, all Americans will benefit from the 
increased economic independence for low-income citizens which will be 
created through the establishment of the Community Development 
Financial Institutions Fund. I strongly urge all my colleagues to 
support this bill, and to vote in favor of adoption of the conference 
report.

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