Peachtree Providence Partners’ Founder Walter Davis was asked to testify before a U.S. House Small Business Committee Subcommittee’s hearing on Examining the role of Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs) on May 18.
In his remarks, which begin around the 36:00 minute mark, Walter shared his thoughts on the state of CDFIs and MDIs and offered suggestions on ways the U.S. government could improve the flow of capital into small businesses, particularly small businesses owned by Black Americans.
“What happens when the federal government does not ensure that the free enterprise system is there for [small, Black-owned businesses] like it is for the mainstream marketplace? What happens is this: the disproportionate economic devastation that we see in communities persists, and these conditions are the bedrock of much of the social dysfunction and, yes, racial unrest that we’re experiencing today. No business can move or grow without access to capital… CDFIs and MDIs handle the bulk of Black and brown small business relief efforts… As a federal government, we must be as dedicated to providing for the needs of minority businesses in distressed communities.”