Public
Policy
Carolina Small Business Development Fund advances the interests of small business owners by engaging in advocacy and research -- core components of CSBDF's mission.
Our Public Policy
CSBDF fosters economic development in underresourced communities by:
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Delivering transparent and affordable capital to entrepreneurs
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Providing customized technical assistance to small businesses at every developmental stage
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Disseminating research and policy analysis regarding the CDFI industry.
North Carolina CDFI Coalition
CSBDF is a founding member of the North Carolina CDFI Coalition, a group of over 20 CDFIs that work together to improve access to capital and economic outcomes for underserved communities in North Carolina. CSBDF President and CEO Kevin Dick serves as the Coalition’s Interim Vice-Chair and Chair of its Policy Advocacy Committee.
Federal Program Partners
CSBDF partners with several federal agencies to deliver capital and technical assistance to its clients:
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The Treasury Department’s CDFI Fund, which provides CSBDF with its CDFI certification. This status qualifies CSBDF for funding opportunities, including Community Reinvestment Act (CRA) investments from banks that CSBDF lends to small businesses through its revolving loan fund.
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The Small Business Administration’s (SBA) 7(a) loan program, in which CSBDF participates as a Community Advantage Small Business Lending Company. Through the 7(a) program, CSBDF accesses partial guarantees that allow it to make loans that may not meet its usual underwriting standards.
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The U.S. Department of Housing and Urban Development’s (HUD) Community Development Block Grant (CDBG) Program. Since 2016, CSBDF’s Western Women’s Business Center (WWBC) has provided classes, trainings, workshops, and one-on-one coaching to entrepreneurs in the City of Asheville through the CDBG program.
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The U.S. Department of Agriculture’s Rural Microentrepreneur Assistance Program (RMAP), through which CSBDF provides loan capital and technical assistance to rural entrepreneurs across the state of North Carolina.
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The U.S. Economic Development Administration (EDA), which provides grant funding to CDFIs that supports the deployment of lending capital and technical assistance to a variety of organizations, including small businesses and nonprofits.
The Shifting Federal Policy Landscape
The federal policy landscape has changed significantly over the last several years, as the executive branch has taken a more active role in shaping the strategic direction, funding, staffing, operations, and eligible client populations for programs that support CDFIs. Despite the current administration’s efforts to dramatically reduce the CDFI Fund’s operating budget, Congress has repeatedly voted to provide the funding needed to maintain the Fund’s core programs.
After significant advocacy from CDFI stakeholders, the Office of Management and Budget (OMB) released the vast majority of the Fund’s fiscal year 2025 operating funds in April 2026, more than one year after the funds were approved by Congress. The SBA 7(a) program, the CDBG program, and RMAP have also faced challenges from the executive branch, detailed below. In addition, programs across multiple federal agencies – including the Fund and the SBA 7(a) program – have adopted policies prohibiting the use of race, ethnicity, or sex as criteria for determining participation and access to government resources.
Our Policy Priorities
Fully Finance the CDFI Fund
As of May 2026, the OMB has only released $35 million of the $324 million appropriated by Congress to the CDFI Fund for fiscal year 2026. While the Fund remains operational, its ability to award funding through its Financial Assistance and Technical Assistance programs is greatly diminished.
In addition to advocating for the full release of fiscal year 2026 funds, CSBDF joins with the Opportunity Finance Network and the CDFI Consortium in requesting that legislators authorize at least $324 million for the Fund for the 2027 fiscal year. CSBDF opposes recent Treasury Department policies that restrict resource access to U.S. citizens and lawful permanent residents, as CDFIs have long played a vital role in the economic development of immigrant communities throughout the United States.
Expand Access to the SBA 7(a) Loan Program
Beginning in 2025, the SBA has adopted policies prohibiting lenders from providing 7(a) program loan guarantees to 1) small businesses with any foreign ownership and 2) firms seeking to refinance Merchant Cash Advance (MCA) debt. These restrictions prevent CDFIs like CSBDF from accessing a vital source of loan guarantees for vulnerable entrepreneurs, many of whom have limited options for accessing safe, transparent, and affordable capital.
The SBA has also undertaken a substantial campaign to identify lenders that have committed debanking to determine whether businesses have faced discrimination when seeking 7(a) loan guarantees. CSBDF is closely watching this initiative, the consequences of which are yet to be determined.
Support Women’s Business Centers
CSBDF’s Western Women’s Business Center (WWBC) provides entrepreneurs in Western North Carolina with one-on-one business coaching, workshops, and access to capital via CSBDF’s revolving loan fund. Although the WWBC is not currently a member of the SBA’s Women’s Business Center network, CSBDF supports the network and calls on the SBA to release funding that it has previously committed to Women’s Business Centers. Whereas the current administration’s fiscal year 2027 budget proposal recommends eliminating funding for Women’s Business Centers, CSBDF joins the network in advocating for full funding in 2027 and beyond.
Preserve the Community Development Block Grant Program
Cities and counties throughout the country use the Community Development Block Grant (CDBG) program to provide a wide variety of services to members of low- and moderate-income communities. While the current administration’s fiscal year 2027 budget proposal recommends ending funding for the CDBG program and transferring responsibility to the states, CSBDF advocates for full funding in fiscal year 2027.
Maintain Funding for the Rural Microentrepreneur Assistance Program
The Rural Microentrepreneur Assistance Program (RMAP) makes loans and grants to Microenterprise Development Organizations like CSBDF to provide loan funds and technical assistance to entrepreneurs in rural communities. Whereas the current administration’s proposed fiscal year 2027 budget eliminates funding for RMAP, CSBDF joins the RMAP Partners group in urging Congress to allocate $1.85 million for loan subsidies and $3.15 million for technical assistance grants.
Strengthen Regulatory Oversight to Combat Predatory Lending
The Consumer Financial Protection Bureau (CFPB) implements, interprets, and enforces the Equal Credit Opportunity Act (ECOA) and the Truth in Lending Act (TILA), which regulate loan terms, disclosures, and data collection for small business lending. However, lenders are not required to report data regarding Merchant Cash Advances (MCAs), agricultural loans, and small dollar loans. CSBDF advocates for the CFPB to require the collection of data for MCAs, agricultural loans, and small dollar loans, with the goal of identifying predatory lending that takes place in these domains of small business finance.
Our Economic Development Policy Team
Adam Safer
Director of Economic Development Policy