WASHINGTON (6/8/12--Funding for the National Credit Union Administration's (NCUA) Community Development Revolving Loan Fund (CDRLF) program would be less than half of the Obama administration's requested budget under an appropriations bill approved by the House Appropriations subcommittee on financial services this week.
The CDRLF, which provides loans and technical assistance to federal and state credit unions that are designated as low-income credit unions, as defined by NCUA regulations, would only receive $500,000.
The Obama administration requested $1.19 million in funds for the 2013 edition of the CDRLF earlier this year.
A total of $1.25 million in CDRLF funding was approved in the 2012 budget.
Funding for the U.S. Treasury's Community Development Financial Institutions (CDFI) fund would hold steady in 2013, matching the 2012 budget's funding level of $221 million.
The Treasury's CDFI Fund helps locally based financial institutions offer small business, consumer and home loans in communities and populations that lack access to affordable credit. Credit unions that are certified to take part in the CDFI program may apply for as much as $2 million in funding to help maintain their credit union's presence in the community. CDFI fund distributions are merit-based.
A total of 44 credit unions applied for a combined $59 million in funding during the 2012 round of the CDFI Fund, and the fund awarded $142,302,667 to 155 institutions, including 25 credit unions, in 2011.
The next step for this appropriations bill is a full House Appropriations Committee vote.