Removing Barriers Blog

Letter sent Senator Schatz in support of CDFI Crisis Fund legislation
Posted August 04, 2020 by CUNA Advocacy

Senator Brian Schatz (D-HI) introduced legislation that would create a $2 billion Community Development Institutions (CDFI) crisis fund to help with pandemic recovery.  CUNA wrote to the Senator in support of his legislation the day it was introduced.

“The pandemic and ensuing economic crisis has had a disproportionate impact on vulnerable communities and the policy response needs to recognize that more needs to be done to help these communities recover,” Nussle said. “Sen. Schatz’s legislation to create a CDFI Crisis Fund will ensure that CDFI credit unions can get much needed resources to our most vulnerable communities, reducing the pain experienced as the result of any number of disasters.” 

The bill’s $2 billion CDFI Crisis Fund would serve as a complement to the Treasury’s CDFI Fund. It would be refilled as funds are deployed each year, and can be activated nationally or state-wide through two automatic triggers:

  • For economic crisis: An increase in the state’s six-month moving average of the national unemployment rate (or if nationally, three-month moving average) by 0.50 percentage points or more relative to its low during the previous 12 months; or
  • For natural disasters, a Stafford Act major disaster declaration where the Individual Assistance Program is activated. Funds are available state-wide if a majority of residents live in a declared county, or for affected county use otherwise.