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NAFCU-sought funds for CU community programs in FSGG bill
NAFCU's Brad Thaler offered support for the fiscal year 2020 financial services and general government (FSGG) appropriations bill, which includes NAFCU-sought funding for the NCUA's Community Development Revolving Loan Fund (CDRLF) and the Community Development Financial Institutions (CDFI) Fund.
"[T]hese programs help promote access to capital and local economic growth in low-income communities," Thaler, NAFCU's vice president of legislative affairs, wrote to the House Appropriations subcommittee ahead of its mark-up of the bill Monday.
The FY2020 FSGG bill includes $2 million for the CDRLF and $300 million for the CDFI Fund. It also includes support for the Small Business Administration's 7(a) and 504 loan programs, which "are an important tool for credit unions to meet the business lending needs of their members."
In addition, the FY2020 FSGG bill has a provision to protect financial institutions that provide services to marijuana-related businesses from federal penalties by entities funded by the bill. The Department of Justice, which gives guidance on the issue, is not covered by this bill; the NCUA is not funded by the appropriations process.
NAFCU is supportive of Congress examining what steps can be taken to provide greater clarity and legal certainty for credit unions operating in the marijuana-related businesses space. The association also has a pros and cons resource to help credit unions considering whether to enter the space.
The subcommittee advanced the FY2020 FSGG bill Monday evening; it now moves to the full House Appropriations Committee for consideration.