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110th CONGRESS, LEGISLATIVE ISSUES A - Z
COMMUNITY DEVELOPMENT REVOLVING LOAN FUND (CDRLF)
ISSUE: The National Credit Union Administration (NCUA) successfully administers the Community Development Revolving Loan Fund program (CDRLF), which is used to provide low-interest loans and technical assistance grants to low income designated credit unions. These small credit unions offer services like free income tax preparation and financial literacy classes. Within NCUA, the Office of Small Credit Union Initiatives administers the fund.
Since FY 2001, Congress has recognized the importance of CDRLF, and has provided annual appropriations for the program. In late 2007, the fund exceeded $13 million in outstanding loans, its highest total ever. The NCUA processed 40 loans, exceeding $7 million, in 2007. This was the largest number of loans ever approved in a single year by the fund.CUNA POSITION: CUNA is strongly supportive of the CDRLF program and advocates full funding from the annual appropriations process.
IMPACT ON CREDIT UNIONS: The CDRLF plays an essential role in the success of Access Across America, an NCUA initiative designed to reach out to underserved communities and create economic empowerment. An increased appropriation for CDRLF will enhance the growth and long-term viability of credit unions in underserved and low-income communities.
STATUS/OUTLOOK: In FY2007, the CDRLF received an appropriation of $941,000, and the President has requested $950,000 for FY2008. On June 28, 2007, the House of Representatives passed H.R. 2829, the Financial Services and General Government Appropriations Act for fiscal year 2008. In the legislation, the CDRLF was given an appropriation of $1 million for this program, an increase of $59,000 over the last fiscal year. On July 12, 2007, the Senate Appropriations Committee passed the House legislation with $950,000 for the CDRLF. In late December, the Congress passed an omnibus spending bill that funded the program at $975,000.
As the federal appropriations process proceeds, CUNA will continue to advocate for a minimum annual $2 million appropriation.
CONTACT: John Hildreth, (202) 508-6724, jhildreth@cuna.coop
Related Documents:
June 6, 2006: Letters to Reps Knollenberg, Olver, Lewis Regarding CDRLF and CLF
July 18, 2006: Letters to Reps Cochran, Bond and Murray Regarding CDRLF and CLF
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