Removing Barriers Blog

CUNA writes to FSGG Appropriations subcommittee in support of CDFI & CDRLF
Posted March 04, 2020 by CUNA Advocacy

CUNA wrote to the House Appropriations Financial Services and General Government (FSGG) in support of the Treasury’s Community Development Financial Institutions (CDFI) Fund and NCUA’s Community Development Revolving Loan Fund (CDRLF). The CDFI and CDRLF are two important funds that help credit unions advance underserved communities.

The CDFI Fund makes capital grants, equity investments and awards for technical assistance to CDFIs for community development initiatives such as small businesses, community facilities, and low-income housing.

CDFIs such as Community Development Credit Unions (CDCUs) are charged with supplying low-income, distressed communities with traditional banking services such as savings accounts and personal loans, and offering individuals the tools needed to become self-sufficient stakeholders in their own future.

The CDRLF assists credit unions serving low-income communities to:

- Provide financial services to their communities;
- Simulate economic activities in their communities, resulting in increased income and employment; and
Operate more efficiently.

CUNA’s letter notes that every dollar appropriated to the CDRLF is passed on directly to the underserved communities, as credit unions insured by NCUA fund the CDRLF’s administrative costs.