Removing Barriers Blog

CUNA writes to House Appropriations Subcommittee in support of CDFI & CDRLF
Posted July 08, 2020 by CUNA Advocacy

CUNA wrote to the House Appropriations Subcommittee on Financial Services and General Government (FSGG) expressing concern that the administration’s budget request does not include adequate funding for the Community Development Financial Institutions (CDFI) Fund or the Community Development Revolving Loan Fund (CDRLF).

The Treasury’s CDFI Fund and NCUA’s 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;
- Stimulate economic activities in their communities, resulting in increased income and employment; and
- Operate more efficiently.

CUNA’s letter also 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.

On Wednesday, the subcommittee approved increases in funding for both programs. The full House Committee on Appropriations is expected to consider the legislation in the coming weeks.