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NAFCU recommends ways to increase CUs' service to women-, minority-owned businesses
Ahead of today's House Financial Services subcommittee hearing examining the challenges that women- and minority-owned businesses may face when accessing capital and financial services during the pandemic, NAFCU's Brad Thaler offered support for the subcommittee's efforts to address these issues.
“As we have shared with you before, credit unions are proud of their record of diversity and commitment to helping the portions of their communities that are most in need with high-quality financial products and services,” wrote Thaler, NAFCU’s vice president of legislative affairs.
Thaler noted that there are 526 federally-insured minority depository institution (MDI) credit unions and 292 credit unions that are designated community development financial institutions (CDFIs). He stressed the importance of “ensuring that these institutions have the resources they need to survive and serve their members during these challenging times.”
Specifically, Thaler asked the subcommittee to include additional set asides in future relief packages specifically for CDFIs and MDIs, similar to what was included in the House’s HEROES Act.
Thaler also urged the subcommittee to consider measures to make it easier for credit unions to become a CDFI and called for an increase in funding for the NCUA’s Community Development Revolving Loan Fund (CDRLF) program.
“NCUA Board Member Todd Harper has specifically called for at least $10 million more for grants in 2020 to help low-income credit unions,” wrote Thaler. “Increasing these grants can help ensure that these credit unions have work-from-home infrastructure in place that is appropriately secure during social distancing measures.”
In addition, Thaler called on Congress to consider amending the Federal Credit Union Act to allow all credit unions to add underserved areas to their fields of membership.
“Currently, only multiple common bond federal credit unions are permitted to add underserved areas to their fields of membership,” noted Thaler. “Too many Americans are unbanked, underbanked or underserved by financial institutions, and credit unions stand ready to help with financial literacy education and access to loans and other financial products.”
The hearing is set to begin at 12 p.m. Eastern today and will be available via livestream.
Thaler also made these suggestions ahead of yesterday's House Appropriations Subcommittee on Financial Services and General Government (FSGG) markup of the FY2021 FSGG bill. See what funding is included as it advances to the full House Appropriations Committee.
As credit unions continue to lead the charge on working toward greater diversity in the financial services industry, NAFCU will continue to advocate for credit unions’ ability to meet the needs of all members in their communities.