Center for American Entrepreneurship Urges Reconsideration of Executive Order to Eliminate the CDFI Fund and MBDA
March 19, 2025
WASHINGTON, D.C. – John R. Dearie, president of the nonpartisan Center for American Entrepreneurship (CAE) today issued the following statement regarding President Trump’s March 14, 2025 Executive Order to effectively eliminate the Community Development Financial Institution (CDFI) Fund and the Minority Business Development Agency (MBDA).
“On the evening of Friday, March 14, 2025, President Donald Trump issued an Executive Order (EO) to eliminate “to the maximum extent consistent with applicable law” seven federal entities, including the Community Development Financial Institution (CDFI) Fund and the Minority Business Development Agency (MBDA). Calling the entities “unnecessary,” a fact sheet issued by the White House stated that the purpose of the Executive Order is “to enhance accountability, reduce waste, and promote innovation.”
CAE respectfully urges President Trump to reconsider the decision to eliminate the CDFI Fund and MBDA.
The President is correct to prioritize innovation, as economic growth is driven by gains in productivity, which is driven by innovation. Innovation, in turn, comes disproportionately from new businesses or “startups” that, research has demonstrated, are uniquely positioned to adapt to changes in technology, consumer preferences, demographics, and market dynamics. The new products, services, and methods developed and introduced by startups challenge incumbent companies, drive competition, and propel economic progress.
The CDFI Fund and MBDA are important sources of capital for new and small businesses, particularly in rural and other underserved areas of the country. Both were established decades ago with strong bipartisan support. The mission of the CDFI Fund, which was established in 1994, is to promote economic growth and opportunity in rural, low-income, and other underserved communities by expanding access to credit, capital, and financial services. The mission of MBDA, which was established by President Richard Nixon in 1969, is to promote growth and competitiveness of minority-owned businesses by providing access to capital, business contracts, and market opportunities.
Thriving entrepreneurship is vital to U.S. economic growth, job creation, and opportunity expansion, and the CDFI Fund and MBDA are important sources of capital for American entrepreneurs, particularly in rural and other underserved areas of the country. With these realities in mind, CAE respectfully urges President Trump to reconsider the decision to eliminate the CDFI Fund and MBDA.”
About the Center for American Entrepreneurship
CAE is a nonpartisan research, policy, and advocacy organization based in Washington, DC. CAE’s mission is to engage policymakers in Washington and across the nation regarding the critical importance of entrepreneurs and startups to innovation, economic growth, job creation, and expanding opportunity – and to pursue a comprehensive policy agenda intended to achieve a stronger, more resilient, and inclusive U.S. economy through thriving entrepreneurship.
For more information, visit www.startupsUSA.org
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