The CDFI Fund and MBDA drive opportunity and prosperity in our communities

On Friday, March 14th, President Trump issued an executive order on “Continuing the Reduction of the Federal Bureaucracy” that threatens the Community Development Financial Institutions Fund (CDFI Fund) and the Minority Business Development Agency (MBDA)—two resources crucial to ACLT’s work. Both the CDFI Fund and MBDA are widely recognized as engines of economic opportunity with bipartisan support. Both make ACLT’s Set Up Shop program possible, without which our programming and operations are challenged.

Set Up Shop provides a pipeline of free training and resources for businesses in historically disinvested communities to launch and grow, having served over 500 entrepreneurs in our Set Up Shop program and more than 100 Indigenous entrepreneurs served in our Indigenous Peoples Set Up Shop program. The entrepreneurs we serve primarily operate early-stage businesses that typically do not qualify for Small Business Association (SBA) services and traditional bank loans. CDFI partners like Cook Inlet Lending Center provide access to financing and technical assistance and MBDA provides funding for training and one-on-one support, all of which is critical to seeing early-stage small businesses start and succeed so they can access traditional resources down the road. These business owners, like the 10 recent graduates of Indigenous Peoples Set Up Shop, are our future leaders and changemakers, growing our state’s economy and becoming cornerstone employers in their communities. 

How CDFIs and MBDA Drive Community Growth and Opportunity

CDFIs expand access to capital, support job growth and wealth creation, and uplift communities that don’t have access to traditional financial resources. The CDFI Fund supports the work of CDFIs across the country, including $304 billion in loans to support more than 4.3 million small businesses, safe and affordable housing for nearly 1 million families, and more than 5,000 community centers offering critical resources like childcare, healthcare, and schools. We’re grateful to the members of the Senate’s CDFI Caucus (including Senator Murkowski), who oversee the CDFI Fund and have advocated for its existence in the face of this order.

The MBDA was created in 1969 by President Richard M. Nixon to address resource and opportunity gaps for small business owners in historically disinvested communities. We now know that closing this gap would add an estimated $7.1 trillion to our country’s economy. MBDA provides programming, funding, and research to support small business owners who can’t access traditional resources. In 2024, MBDA helped thousands of small businesses secure over $3.2 billion in contracts and $1.6 billion in capital, and helped create and retain over 23,000 jobs. MBDA has been broadly supported by a bipartisan coalition including both Senator Murkowski and Senator Sullivan.

With the future of these vital programs now at risk, what can we do? 

Take Action

• Contact your Members of Congress – Encourage them to protect CDFIs & MBDA.
• Spread the word – Share this post to raise awareness about what’s at stake.
• Visit the Opportunity Finance Network Action Center webpage for information, tools and other resources to help you advocate.

The CDFI Fund and MBDA don’t just invest in businesses—they invest in people. Let’s keep them strong so they can continue driving opportunity and prosperity in our communities.