Federal Policy as a Key Lever for Change
POLICY IN ACTION: INVESTING IN COMMUNITIES. The US government has a long history of legislative and regulatory support for impact investing. The Community Reinvestment Act (CRA), passed by Congress in 1977, helps to serve the credit needs of low- and moderate-income communities by encouraging financial institutions to serve their communities. Thanks to CRA, banks have actively promoted housing and economic opportunity for underserved groups by providing affordable mortgage programs, small-business loan products, community development financing, and more.40 Since 1996, banks—in partnership with Community Development Finance Institutions which help to deploy funds, federal grants, and technical assistance—have reported more than $764 billion in small-business loans in low- and moderate-income communities.
We strongly support continuation of this critical policy.